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Holmgren Engineering - Case Study Example
The aim of operations management is to create a competitive advantage to the company. It must manage the production of quality goods in an efficient manner in order to be cost effective. It must reduce development times so that new products can be brought to the market quickly…
The company manufactures water storage products with pressure heating systems. The product range of the firms comprises of five models that has low variation in design such as the storage capacity and dimensions. The company employs a current process of batching production orders in a layout that is jumbled and disarranged.
The production engineering head has made a proposal to the top management to change the process into a one-piece flow approach, redesign the facilities layout into a U-shaped assembly line, and transform the orientation into a make-to-order process.
The benefits of the proposed changes will make the company achieve its goal of cost advantage, process simplification and inventory management. Also, the implementation of the changes will free up space in the shop floor which would create an opportunity for the company to extend the product line or expand the capacity of the production.
Holmgren Engineering is a manufacturing company with core competencies in developing, manufacturing, and selling of water storage systems that include main pressure heating system. The products are marketed and sold under Hetvatten Plus trademark. The product range includes five models with different storage capacities, dimensions and dwelling type usage.
Holmgren Engineering has evolved from a humble heating engineering firm, started by its founder Benny Holmgren, into a full serv ...