Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
To: Johnny Bennett
From: Kathryn Marley
Subject: Brief 6: Flashy Flashers
Date: February 14, 2014
Flashy Flashers
Flashy Flashers is a medium sized firm ran by President Johnny Bennett. The firm
employees a total of 1,025 people and produces a line of automotive electrical components.
“Love Thy Customers as Thyself,” is Johnny Bennett’s commitment to his customers is also his
company motto. Flashy Flashers has been successful through hard work, consistent product
quality, and good customer service. Last year, Kathryn Marley, Vice President of Operations and
Supply Chain Management, approved the installation of a new MRP system, which was the first
step towards execution of a full-fledged ERP system. Recently, she has reached out to the
production and inventory control manager, shop supervisor, and the purchasing manager to get
feedback on the current MRP system. After conversations with the select employees, Kathryn
became aware of a few issues with the current MRP system, and is working to provide
continuous improvement. Kathryn has discovered she needs to find solutions to the issues of
incorrect due dates production, incorrect lead times in the purchasing department, unlevel
loading in production, and put the confidence back in the inventory levels for planning to
accurately release and plan orders according to capacity.
Taking the details provided by the managers and supervisor, Kathryn needs to consider
how each of these issues will impact the company and how quickly they need to be addressed.
The due dates being incorrect in production is a significant problem causing the production
scheduled to be chaotic, which also increases labor costs with the amount of overtime employees
must work to complete the work in the busy weeks. The purchasing group is struggling with
having to expedite items with MRP not taking the vendor lead times into consideration. If this
problem remains constant, the vendors will become irritated with constant expedited orders, or
they also may not be able to fill the orders in time. If the vendors cannot expedite the orders, then
backorders will increase; along with the lead time it takes to get the completed product to the
customer. The planning department is unsure of the orders they release due to the incorrect due
dates and also the inventory numbers that are in MRP. Orders are released regardless of
inventory or capacity with the current MRP system. Although the MRP system does have
positive benefits it brings to the company, the issues they are currently experiencing need to be
addressed to ensure customer service levels are not interrupted.
I recommend that Kathryn Marley presents the idea of moving forward with the fullblown ERP system to President Johnny Bennett. Having a full-blown ERP system will be costly
to the company in the short term; however it will be capable of addressing and correcting all of
the current issues Flashy Flashers is experiencing if implemented correctly. A new ERP system
will allow production to actively update due dates, which in turn will give planning more
confidence in releasing orders and inventory levels. The ERP system will also help purchasing
with their struggling lead time issues. Ordering off lead times will help build vendor
relationships, and also allow materials to arrive on time for production to be level loaded. The
updated ERP system will allow Flashy Flashers to improve its overall process while decreasing
the amount of lead time it takes to provide product to customers, and also decrease labor hours
once production is level loaded. Overall, the current planning process can be improved with the
full-fledged ERP system.
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
References
Krajewski. Ritzman. Malhotra, (2013). Operations Management Process
and Supply Chains. 2nd ed. United States of America: Pearson.
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
Appendix A
Item: C206P
Description: SCREWS
Date
Gross Requirements
Scheduled Receipts
Projected On Hand: 270
Planned Receipts
1
2
3
200
4
720
5
700
6
670
270
270
70
1850
2500
1150
480
Planned Order Release
2,500
Item: C310P
Description: BACK RUBBER GASKET
Date
1
2
3
4
Gross Requirements
100 120
Scheduled Receipts
180
Projected On Hand: 40
220 220 120
0
Planned Receipts
Planned Order Release
180
Item: HL211A
Description: Head Frame Subassembly
Date
1
2
3
4
Gross Requirements
120
Scheduled Receipts
Projected On Hand 0
0
0
0
0
Planned Receipts
120
Planned Order
Release
120 90 75
Item: HL212P
Description: HEAD LENS
Date
Gross Requirements
Scheduled Receipts
Projected On Hand: 15
Planned Receipts
Planned Order Release
5
170
6
185
10
180
180
5
180
DO
NOTHING
Lot Size: FOQ 180 units
Lead Time: 1 1 Weeks
1
7 8 9 0 1 12
DELAY
5
90
6
75
0
90
0
75
Lot Size: L4L units
Lead Time: 1 3 Weeks
1
7 8 9 0 1 12
RELEASE
1
2
3
4
120
5
90
6
75
15
15
15
245
350
155
80
350
Lot Size: FOQ 2,500 units
Lead Time:
1 1Weeks
1 1
7 8 9 0 1 2
Lot Size: FOQ 350 units
Lead Time: 1 2 Weeks
1
7 8 9 0 1 12
DO
NOTHING
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
Item: HL222P
Description: HEADLAMP MODULE
Date
1
2
Gross Requirements
Scheduled Receipts
285
Projected On Hand: 10
295 295
Planned Receipts
Planned Order Release
Item: HL223F
Description: HEAD FRAME
Date
1
2
Gross Requirements
Scheduled Receipts
120
Projected On Hand: 0
120 120
Planned Receipts
Planned Order Release
90
75
Item: SL111P
Description: Side Lens
Date
1
2
Gross Requirements
Scheduled Receipts
Projected On Hand: 0
15 15
Planned Receipts
Planned Order Release
350
Item: SL112A
Description: SIDE FRAME ASSEMBLY
Date
1
2
Gross Requirements
Scheduled Receipts
80
Projected On Hand: 20 20 100
Planned Receipts
Planned Order Release
80
3
4
120
5
90
6
75
295
175
85
10
Lot Size: POQ P=4
Lead Time: 1 3
7 8 9 0
WEEKS
Weeks
1
1 12
3
4
120
5
90
DELAY
Lot Size: POQ P=4 WEEKS
Lead Time: 1 1 Weeks
1
6
7 8 9 0 1 12
75
120
0
0
90
0
75
RELEASE
3
140
4
5
80
6
145
225
350
225
145
0
Lot Size: 350 units
Lead Time: 1 2 Weeks
1
7 8 9 0 1 12
RELEASE
3
100
4
5
80
6
110
0
0
0
80
0
110
110
Lot Size: L4L units
Lead Time: 1 3 Weeks
1
7 8 9 0 1 12
DELAY
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
Item: SL113P
Description: SIDE LENS RUBBER GASKET
Date
1
2
3
Gross Requirements
100
Scheduled Receipts
Projected On Hand: 20 20
20
20
Planned Receipts
100
Planned Order Release
100
4
5
80
6
110
20
20
100
10
100
100
100
Item: SL121F
Description: SIDE FRAME
Date
1
2
3
4
Gross Requirements
100
Scheduled Receipts
80
Projected On Hand: 0
0 80
0
0
Planned Receipts
20
Planned Order Release 20
80 110
Item: SL122A
Description: SIDE BULB SUBASSEMBLY
Date
1
2
3
4
Gross Requirements
100
Scheduled Receipts
80
Projected On Hand: 0
0 80
0
0
Planned Receipts
20
Planned Order Release 20
80 110
Item: SL123A
Description: FLASHER BULB SUBASSEMBLY
Date
1 2
3
4
Gross Requirements
100
Scheduled Receipts
Projected On Hand: 0
0 0
100 100
Planned Receipts
200
Planned Order Release
200
200
Lot Size: FOQ 100 units
Lead Time: 1 1 Weeks
1
7 8 9 0 1 12
DO
NOTHING
5
80
6
110
0
80
0
110
Lot Size: L4L units
Lead Time: 1 2 Weeks
1
7 8 9 0 1 12
RELEASE
Lot Size: L4L units
Lead Time: 1 2 Weeks
1
7 8 9 0 1 12
5
80
6
110
0
80
0
110
5
80
RELEASE
Lot Size: FOQ=200 units
Lead Time: 1 2 Weeks
1
6
7 8 9 0 1 12
110
20
110
200
RELEASE
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
Item: SL131F
Description: SIDE CABLE GROMMET & RECEPTABLE
Date
1
2
3
4
Gross Requirements
100
Scheduled Receipts
110
Projected On Hand: 0
110 110
10
10
Planned Receipts
5
80
6
110
0
70
0
110
Planned Order Release
70
110
Item: SL132P
Description: SIDE BULB
Date
1
2
3
4
5
Gross Requirements
100
80
Scheduled Receipts
100
Projected On Hand: 35
135 135
35
35
55
Planned Receipts
100
Planned Order Release
100
100
Item: SL133F
Description: FLASHER CABLE GROMMET & RECEPTABLE
Date
1 2
3
4
5
Gross Requirements
100
80
Scheduled Receipts
Projected On Hand: 0
0 0 150 150
70
Planned Receipts
250
Planned Order Release
250
250
6
110
Lot Size: POQ=2
Lead Time: 1 2
7 8 9 0
WEEKS
Weeks
1
1 12
DO
NOTHI
NG
Lot Size: FOQ=100 units
Lead Time: 1 1 Weeks
1
7 8 9 0 1 12
45
100
DELAY
Lot Size: FOQ=250 units
Lead Time: 1 2 Weeks
1
6
7 8 9 0 1 12
110
210
250
RELEASE
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
Item: SL134P
Description: FLASHER BULB
Date
1
Gross Requirements
Scheduled Receipts
Projected On Hand: 100
100
Planned Receipts
2
3
100
4
5
80
6
110
100
0
0
320
400
210
Planned Order Release
Lot Size: FOQ=400 units
Lead Time: 1 1 Weeks
1
7 8 9 0 1 12
DO
NOTHING
400
WEEK
ITEM DESCRIPTION AND PART
NUMBER
SCREWS (C206P)
BACK RUBBER GASKET (C310P)
HEAD FRAME ASSEMBLY (HL211A)
HEAD LENS (HL212P
HEADLAMP MODULE (HL222P)
HEAD FRAME (HL223F)
SIDE LENS (SL111P)
SIDE FRAME ASSEMBLY (SL112A)
SIDE LENS GASKET (SL113P)
SIDE FRAME (SL121F)
SIDE BULB SUBASSEMBLY (SL122A)
FLASHER BULB SUBASSEMBLY (SL123A)
SIDE CABLE GROM & RECEPT (SL131F)
SIDE BULB (SL132P)
FLASHER CABLE GROM & RECEPT
(SL133F)
FLASHER BULB (SL134P)
1
2
120
90
350
90
350
75
80
100
20
20
200
3
2,500
5
180
180
100
110
110
200
110
100
100
75
110
80
80
70
250
4
250
400
100
6
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
Appendix B
5-Step Critical Thinking Decision-Making Process Matrix
Step 1: Identify the problem(s) and uncertainties.
What exactly is the problem…
After Kathryn Marley spoke with the production and inventory control manager, the shop
supervisor, and the purchasing manager to discuss how well the MRP system is working, she
received feedback on a couple issues. The production and inventory control manager told her the
due dates on the orders are wrong and do not get updated. This causes production jobs to be
scheduled incorrectly. The current system also does not consider capacity issues when releasing
new orders. The shop supervisor would like the job loads to be level and the overrides on the
scheduled receipts information difficult to rely on. The purchasing department is too busy fixing
errors that they do not have time to improve their department spending. MRP currently does not
work properly with lead times and not giving the proper amount of time to order even though the
item is set up correctly in the system.
The problem is this …
Kathryn Marley has discovered that her MRP system has a few glitches that need to be
addressed. The due dates are not correct nor updated, causing production jobs to be scheduled
incorrectly. Jobs are released regardless of capacity, the load of jobs each week is not level,
planning has trouble relying on inventory due to overrides, and purchasing has issues with the
lead times the MRP system provides.
This is an important problem because…
If the MRP issues can not be addressed, then Flashy Flashers may start to decrease its customer
service with long lead times and back orders. This may also result in customers going to
competitors for faster business and better service.
The key question(s) that needs to be answered to solve this problem is…
How does Flashy Flashers implement a process of updating due dates, level loading production,
eliminating overrides, and ordering items off the correct lead times in MRP.
Step 2: Obtain information.
The following information is needed to answer this question…
In the short term, Flashy Flashers can manually update due dates and stop the overrides that are
affecting planning. The purchasing group will have to be aware of the lead time issues when
ordering, and planners will have to do their best to level load production. In the long term,
Kathryn needs to look into upgrading the MRP system to one that will help correct the issues
Flashy Flashers is currently facing. The upgraded MRP system may be costly; however it will
improve production efficiency, and decrease backorders and lead times. My biggest question is
“do the due dates in production affect the lead times in MRP that purchasing is struggling with?”
If the due dates are updated, will purchasing lead times be correct?
Some important assumptions I am using in my thinking are…
I am assuming that production currently does not change any due dates and they could manually
update them if desired. I am also assuming purchasing has double checked the set up of all items
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
correctly in their system and are not able to figure out why the lead times are not showing up
correctly when MRP runs.
The points of view relevant to this problem belong to…
The president of Flashy Flashers, Kathryn Marley, the purchasing team, production team, and
planning team; along with all customers and suppliers who are connected to Flashy Flashers.
Step 3: Make predictions about the future.
If this problem gets solved, some important implications are…
Kathryn Marley needs to review her options, along with the issues from the current MRP system
to decide which issues need to be fixed and which ones can be managed for the time being. The
disadvantage of not finding another MRP system can significantly impact customer satisfaction
and also vendor relationships (which purchasing constantly requesting expedited orders). The
advantage of moving to a full blown MRP system may have a large cost associated with it, but it
will also help solve the current issues that Flashy Flasher’s is facing.
If this problem does not get solved, some important implications are…
If the problem remains unsolved, the vendors are going to be upset with the purchasing
department constantly trying to expedite orders. The labor costs will continue to be high with
unlevel work weeks. Customers may be upset with long lead times to get their items due to
purchasing and planning issues and eventually look for other places to give their business.
Capacity also may be reached once too many orders are released with incorrect due dates.
The potential alternative solutions to solve the problem are…
There may be multiple conflicting points of view between the production, planning, and
purchasing team; however the recommendation will come from Kathryn Marley and will be
presented to the president Johnny Bennett.
Step 4: Make decisions by choosing among alternatives.
What is the best solution and why…
I recommend Kathryn Marley presents to Johnny Bennett that an upgraded full blown MRP
system is necessary to ensure all items are orders, manufactured, and shipped to the customer
within a timely manner. The new MRP system will also improve operations allowing the
production team to level load, planning to release orders correctly, and purchasing to order the
correct items with corresponding lead times.
Step 5: Implement the decision, evaluate performance, and learn.
In business, the fifth step in the decision making process is implementation. In the MBA
program, most times you will end with Step 4 since you will not have the opportunity to
implement. You may be asked to develop an implementation plan and recommend how you will
evaluate performance in some assignments.
Appendix C
Brief 6 Rubric
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
Total 75 points
Criteria
Develops an
opening
paragraph that
introduces the
case.
Unacceptable
Acceptable
Vaguely develops
an opening
paragraph that
introduces the
case or does not
have an opening
paragraph.
Develops an
opening
paragraph that
introduces the
case and, for the
most part, fulfills
assignment
requirements.
Develops an
opening
paragraph that
introduces the
case and
demonstrates
solid ability to
accomplish the
assignment.
(4 points)
Analyzes the data
derived from
Step 2 and, for
the most part,
fulfills
assignment
requirements.
(5 points)
Analyzes the data
derived from
Step 2 and
demonstrates
solid ability to
accomplish the
assignment.
(0-3 points)
Analyzes the
data derived
from Step 2.
Vaguely analyzes
the data derived
from Step 2 or
completely off
the topic.
(0-7 points)
Discusses the
good and bad
points of the
MRP
implementation
at the company.
Vaguely discusses
the good and bad
points of the
MRP
implementation
at the company
or completely off
the topic.
(8 points)
Discusses the
good and bad
points of the
MRP
implementation
at the company
and, for the most
part, fulfills
assignment
requirements.
(0-7 points)
Recommends
how to improve
the resource
planning
process at the
company.
Vaguely
recommends
how to improve
the resource
planning process
at the company
(8 points)
Recommends
how to the
resource
planning process
at the company
and, for the most
Proficient
(9-10 points)
Discusses the
good and bad
points of the
MRP
implementation
at the company
and
demonstrates
solid ability to
accomplish the
assignment.
(9-10 points)
Recommends
how to improve
the resource
planning process
at the company
and
Student Score
and Comments
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
or completely off
the topic.
part, fulfills
assignment
requirements.
(0-11 points)
demonstrates
solid ability to
accomplish the
assignment.
(14-15 points)
(12-13 points)
Integrates
established
operation
management
principles into
the discussion.
Synthesizes
relevant
information
and materials
to provide
evidence of
critical
thought.
Develops ideas
with clarity
and logic.
Uses
supporting
documentation
that has been
properly
Rarely integrates
established
operation
management
principles into
the discussion.
For the most
part, does a good
job of integrating
established
operation
management
principles into
the discussion.
Consistently does
a good job of
integrating
established
operation
management
principles into
the discussion.
(0-7 points)
Synthesizes
information at a
minimal level.
(8 points)
For the most
part, effectively
synthesizes
information,
which supports
main ideas.
(9-10 points)
Consistently and
effectively
synthesizes
information,
which provides
strong support to
main ideas.
(0-3 points)
(4 points)
(5 points)
Demonstrates
little clarity and
logic. Readers
have difficulty
following the line
of reasoning.
Develops ideas
with clarity and
logic. Readers can
generally follow
the line of
reasoning.
Develops ideas
with clarity and
logic. Ideas flow
smoothly from
one to another
and are clearly
linked to each
other.
(0-3 points)
(4 points)
Inadequate or
minimal use of
supporting
documentation
or not properly
For the most
part, uses
supporting
documentation
that is properly
(5 points)
Consistently uses
supporting
documentation
that is properly
referenced and
Rachel Byer, Brief 6: Flashy Flashers, MBA 731, Professor Bouchane February 14, 2014
references and
cited.
referenced or
cited.
referenced and
cited.
(0-3 points)
Considered
holistically,
demonstrates
the ability to
write at the
graduate level.
Considered
holistically, the
student
demonstrates an
inadequate
ability to write at
the graduate
level.
cited.
(5 points)
(4 points)
Considered
holistically, the
student
demonstrates an
acceptable ability
to write at the
graduate level.
Considered
holistically, the
student
demonstrates a
proficient ability
to write at the
graduate level.
(8 points)
(9-10 points)
(0-7 points)
SubTotal Points
Turnitin.com
Did not turn
paper into
Turnitin.com
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Minus 10 points
Revisions
based on the
originality
Report
Did not revise
paper based on
the originality
report
Minus 10 points
Grammarly
Did not revise
paper based on
Grammarly.
Minus 10 points
Total Points =