A well-established business is having performance problems


THE PERFORMANCE PROBLEM!

A well-established business is having performance problems; at least as far as management is concerned. This particular location has the slowest total processing time measured from when the receipt is processed until the shipment is released for delivery to the customer. You’ve been tasked with “speeding up” the order processing system.

There are 12 distinct operations involved in processing and shipping orders. Some can be performed at the same time as others, whereas others have to be performed in sequence- meaning, once can not take place before the other is completed.

You job (based on the information provided below) and (remembering the lecture notes that accompanied this assignment) is to analyze the order-processing and shipping operations. Review the supplied data below and then answer the questions.

Note – When reviewing the chart you will notice that PRECEDENCE (P) RELATIONSHIPS has a ** beside it, the explanation for this area is as follows:

(Tasks on the right of the < cannot begin until tasks on the left are completed)

Task       Description          Duration (in days) P Relationships**

A   Order received / Entered in system       0.25           A < D

B   Decision, Fill from Warehouse OR

   Direct ship from factory           0.50           B < C

C   Print pick ticket / order           0.30           C < H

D   Verify customer credit           0.35           D < G,E

E   Check / determine buyer discounts       0.15           E < F

F   Prepare invoice, enter in accts. receivable   1.00           F < K

G   Decision – mode of shipment and carrier   1.65           G < J

H   Pick order at warehouse           0.75           H < I

I   Pack and label shipment           1.20              I < L

J   Notify carrier, prepare shipping documents   2.25              J < L

K   Transmit copy of invoice to shipping dock   1.20           K < L

L   Transport order to customer           3.50             

Arrange the tasks as shown above into cycle paths and identify the critical path. (HINT there are 3 path possibilities)

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Operation Management: A well-established business is having performance problems
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