Mcleod Motors Ltd
Based on the case, provide recommendations that stated directly, carefully, and clearly.
Give reasonable explanation and provide clear and complete support for the recommendation, reflects good or deep insight to the case.
One of the recommendations can analyze the bottleneck that refers to lowest effective capacity of any process. (Related questions: What is the bottleneck in the production? How can you alleviate bottleneck?)
Mcleod Motors Ltd needs to check several aspects include increasing warehouse space for capacity production, improving the Original Equipment Manufacturer, reduction of operational costs, and scheduling more than one machine in the production department.
The space for storing for storing materials was inadequate to cater for work in progress and finished goods supplies which if enlarged would lead to high productions and attracting large market. Improving the original equipment manufacturer phased greatly in market replacement in the product mix which advanced fairly and made forecast very easy for shorter periods of time leading to decent decisions and boosts for profits. Reduction in production costs through cost control tended the motor business to reduce the production overhead and direct costs. This is achieved through labor cost control measures such as labor negotiations and consultancy personnel thus increasing the profits margin. Scheduling more than one machine in departments reduces processing time hence brings the number of bins produced doubled. Supply for bins was subsequently increased by each worker through handling batches and passing over to the next machine then fewer durations would be spent to perform and exhibit the required operation process.
In the production process, bottleneck is one aspect in a chain of activities that limits the operations of the entire chain such as overstock supply, production pressure and decreased employee morale. Bottlenecks can be minimised by increasing resources such as labor that is assign employees from other departments to crackdown the bottleneck, examining and analyzing the amounts of product differences, involving management of resources that feeds the bottleneck like equipment failures, keeping replacement and proper maintenance of equipment and breaking down the operations into smaller portions that can cope with resources in shorter cycles.