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• W2993670443 abstract "CASE DESCRIPTION This is a field researched case about a failing plywood plant in East Kalimantan, Indonesia during the plywood manufacturing boom in that region. The research team had full access to the plant manager. The purpose of this case is to introduce students to the considerations in decision making in operational process improvement in accordance with capacity constraints and market conditions. This case is intended for use in an upper-level undergraduate Operations Management course early in the term and can be used as a scenario for discussion of capacity management. Students are expected to spend 2 to 3 hours of outside preparation reviewing concepts of capacity analysis, reading the case materials and brainstorming process improvement options. The instructor should advise students to pay attention to the particular relevance and importance of the bottleneck step in process capacity. The case can be taught in one 75- minute class period. CASE SYNOPSIS The events in this case took place when many logging firms in Indonesia were venturing into plywood production business with little experience. Ching-Mia Hung, a Taiwanese veteran of the plywood production business, was asked to turn around a failing plywood plant in East Kalimantan, Indonesia. Ching-Mia accepted the challenge and studied the plant patiently for a month before taking any action. Among his observations of the plywood production operation, Ching-Mia noticed several anomalies in inventory and capacity management with respect to external market conditions. This case presents students with a complex plywood production process with realistic and hard-to-come-by details, including the composition design of different plywood products, their respective production steps, common production challenges, and market demand information. Students are challenged to analyze the scenario and identify operational process improvement opportunities. Embedded in the case information are clues on improving operation without requiring additional equipment investment or new hiring. The instructor should encourage students to formulate action plans that utilize current resources more efficiently to cater to existing market conditions. INSTRUCTORS' NOTES Recommendations for Teaching Approaches The case should be introduced after the students have read the relevant chapters on capacity management (Chapter 6, Capacity Management, Foundations of Operations Management, by Ritzman and Krajewski, 2002; Chapter 9, Capacity Planning and Facility Location, Operations Management, by Reid and Sanders, 2004). This case may also be used for an end- of-chapter discussion in capacity management. Decision challenges include the identification of process bottlenecks and the allocation of production resources to different products for different markets. Specifically, order mix can affect the overall production capacity. From the perspective of profitability, one must consider unit price as well as production capacity in determining order mix. In this case, students will: * learn about the plywood production industry and the complexity of operational execution when considering the requirements and prices of different markets. * experience the difficulty of recognizing operational problems and are challenged to formulate a potential solution to resolve such problems. * identify the bottleneck in the operation. * propose an improvement initiative to address the short- and long-term problems of the production process. A discussion and explanatory lecture will include the following: The capacity of an operation is dependent on the type of product produced when different products require different workloads from process steps. The 8,000 cubit meters per month mentioned in the case was a theoretical number based on the ideal capacity of equipments without consideration of operational characteristics, such as product mix or input quality (see below: Quality of logs to Unit I). …" @default.
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• W2993670443 date "2009-12-01" @default.
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• W2993670443 title "Kaltim Plywood: Production Improvement in Developing countries.(Instructor's Note)" @default.
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