If a load report (resource requirements profile) shows a work center scheduled beyond capacity:
Options:
A. the company must add capacity by enlarging the facility.
B. the company must add capacity by such tactics as overtime and subcontracting.
C. the work center’s load may be smoothed by such tactics as operations splitting or lot splitting.
D. the aggregate plan must be revised.
E. the Wagner-Whitin algorithm should be used to rebalance the load.
The Correct Answer Is:
C. the work center’s load may be smoothed by such tactics as operations splitting or lot splitting.
Correct Answer Explanation: C. the work center’s load may be smoothed by such tactics as operations splitting or lot splitting.
When a load report indicates that a work center is scheduled beyond its capacity, the suitable option is often to employ tactics to smooth the workload, such as operations splitting or lot splitting.
These strategies aim to redistribute or reorganize the workload without immediately requiring physical changes to the facility or revising the aggregate plan.
Operations splitting involves breaking down larger tasks into smaller, manageable parts that can be handled within the work center’s capacity. Lot splitting, on the other hand, involves dividing the production lots or orders into smaller batches to balance the workload more evenly across available timeframes.
These tactics optimize the utilization of existing resources without necessitating immediate and costly expansions or revisions.
Now, let’s explore why the other options are not the most appropriate solutions:
A. Enlarging the facility (Option A):
Expanding a facility is a considerable undertaking requiring significant investments in time, finances, and resources. It involves construction, procurement, and potentially zoning permits, which all take time.
Moreover, it might not be the most immediate or cost-effective solution when a work center is facing an overload. In manufacturing or operational settings, where demand can fluctuate, making long-term facility changes based on a short-term overload might not align with the dynamic nature of business needs.
B. Adding capacity through tactics like overtime and subcontracting (Option B):
While overtime and subcontracting can temporarily address an overloaded work center, they often come with increased costs. Overtime can strain the workforce, leading to burnout and reduced productivity over time.
Subcontracting might involve added expenses and potential quality control issues if the subcontractors’ standards don’t align with the company’s. Additionally, relying solely on these tactics might not fundamentally resolve the underlying workload distribution issue at the work center.
D. Revising the aggregate plan (Option D):
Revising the aggregate plan involves reconsidering the entire production strategy, which can be a time-consuming process. While it might be necessary to accommodate changes in demand or capacity, it’s a broader solution that might not directly address the immediate overload issue at the specific work center.
It’s more about adjusting the overall plan rather than specifically mitigating the excess workload at the identified point.
E. Using the Wagner-Whitin algorithm (Option E):
The Wagner-Whitin algorithm is a valuable tool for optimizing production and inventory management, specifically focusing on lot-sizing problems to minimize costs associated with setup and inventory holding.
However, its application is more aligned with inventory and production planning, rather than directly addressing workload imbalances at a specific work center. It’s not tailored to managing immediate capacity constraints within a single operational unit.
In summary, while these options might have their merits in specific contexts and could be part of a larger strategy, when confronted with a work center operating beyond its capacity, the immediate focus should often be on tactics like operations splitting or lot splitting.
These strategies allow for a more efficient utilization of existing resources without immediately requiring significant changes or investments.
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MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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