Homework Chapter 7
JIT and Lean Systems
MGMT4102, J. Wang
Case Analysis: Katz Carpeting, p.261-262
Requirements:
Use MS Word to type your answers out, with font size 12, double spaced, and standard
margins (1”).
Mark the question numbers on you answers.
Try to make your analysis to-the-point and concise. Three to five pages are the expected
length of this work. Do not go beyond six pages.
Answer the following questions according to the case provided in the textbook p.261-262,
ignoring the “Case Questions” given at the end of the case.
Questions:
#1. Briefly describe the operation process of producing the two product lines, “standards” and
“specials”. The following questions should be covered in your description.
What are the differences between the processes of making the two product lines in terms
of steps of processing?
How do the two products share same production facilities? Which one has priority in
using the facilities?
What is the setup time for each product?
Why is the setup time for the specials longer than that for the standards? (your
imagination may be needed here);
Is the production process for making the standards a “make-to-stock” or “make-to-order”
process? How about the production process for making the specials?
Is the production process for making the standards a “forecast-push” or “demand-pull”
productions? How about the production process of making the specials?
Which product has more inventory, and why?.
#2. Why did Josh Wallace, president of Katz Carpeting, think that operation was not doing its
job? List the problems he identified.
(continued on the back)
1
#3. Evelyn Jones, the newly hired head of operation, argued, “As both products are made on the
same line, production of the specials holds up production of the standards. Also, operations frequently
stops planned production to meet special rush orders.” Consider two alternatives for facilities /
lines:
Alternative (1): Run the two products on separate facilities.
How does this alternative work?
How does this alternative improve the performance of operations?
What are the pros and cons of this alternative?
Alternative (2) Two products remain sharing the same facilities, but some improvement must be
done.
What improvements need to be done?
What are the pros and cons of this alternative?
#4. Evelyn Jones suggested moving toward just-in-time (JIT) production. But she did not
provide details of her thoughts.
Fill up her JIT suggestion with some specific steps and improvements that you think Katz
needs to do for switching to JIT. (You may pick one alternative in Item #3 for your suggestion
on facilities.)
How would the proposed JIT production help resolve the current problems of operation
as listed in Item #2?
#5. How would you characterize Josh’s view of JIT? What challenges do you think Katz will
face in implementing JIT?
Josh said, “Here they need to get rid of that inventory!” Do you think JIT would help fulfill
Josh’s desperate goal of “get rid of inventory”? And how?
#6. If you were Evelyn Jones or the consultant to be brought in, what additional information,
other than that given in the case, you would like to know when planning the JIT switching?
2