StudentShare solutions
Triangle menu

Royal Mint Production Management - Case Study Example

Not dowloaded yet

Extract of sample
Royal Mint Production Management

It is clear that Royal Mint wants to establish itself as a low cost producer through economies of scales i.e. Mass Production at a reduced cost.
Companies plan and forecast the demand according to the future needs of the market. Forecasting demand assists in decision making with respect to investment in plant and machinery, market planning and future sales. Some of the popular forecasting methods include
In this Case, Royal Mint Estimates the demand on Time series basis. In the UK, the Treasury contracts with Royal Mint on an annual basis for the likely requirements for coin in 12 months. The Mint meets every three months with executives from the UK clearing banks to discuss their currency requirements in the shorter term. These estimates are then updated at weekly planning meetings and the demand is forecasted and Royal Mint follows a Just in time work schedule. Based on these estimates, the raw material is procured and safety stock is maintained.
Agile manufacturing is the ability to accomplish rapid changeover between the manufacture of different assemblies. Rapid changeover is further defined as the ability to move from the assembly of one product to the assembly of a similar product with a minimum of change in tooling and software. Rapid changeover enables the production of small lot sizes, allowing for just-in-time' production.

Inventory Control - Safety Stock
Inventory control is a planned approach of determining what to order, when to order and how to order and how much to stock so that costs associated with buying and storing are optimal without interrupting production and sales. Safety stock is an important measure to be calculated regarding inventory. This ensures efficient purchasing, storing, consumption and accounting for materials. This also ensures that there is no shortage of product and there is adequate supply of product to customers. This improves delivery time and increases the reliability measure of a company.

Inventory Control must be established to avoid huge accumulation of inventory. The Order level and Order quantity must be estimated prior to avoid shortages and reduce the customer lead time. These estimations in practical aspects are not accurate to the core. The estimations might be either higher or in some cases below the exact demand.

To avoid this discrepancy, Safety stock is determined. In order to ensure that additional stock is maintained to meet the customer demand, the Safety stock level can be calculated as per the following formula.

Safety stock = (Maximum Lead time - Normal Lead time) * Consumption rate

Q2.Explain the criteria which the Mint will need to take into account when it designs new

The criteria which ...Show more


This refers to the selling of the same product but at various prices. Consider mineral water for example. The packaged mineral water in can costs $10 and the same mineral water in bottle costs $5 and in packet costs $2. Here, at least the quantity varies but in some cases, the quantity remains the same or even less but charged more.
Author : ydare
Royal Mint Production Management essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Royal Mint Production Management"
with a personal 20% discount.
Grab the best paper

Related Essays

Production and Operations Management. Lenzing AG Case study
Production and Operations Management Assignment 4. Lenzing AG was considered to be amongst the biggest producers of the rayon fiber worldwide in the year 1990. The company was situated in a small town that was around 70 kilometers away from Salzburg and is a company of Austrian origin.
9 pages (2250 words) Case Study
Royal national lifeboat institute
The foundation of this charity was laid based on an appeal by Sir William Hillary with royal sponsorship, in the year 1824. It was originally known as the National Institution for the Preservation of Life. Hillary was a witness to the wrecking of several numbers of ships and felt pained at the pathetic conditions of the victims.
10 pages (2500 words) Case Study
Gordon Nixon: Supervisor at Royal Bank of Canada
Nixon joined Queen’s University where he received Bachelor degree in Commerce. Nixon started investing in Dominion Securities after graduating. Royal Bank of Canada acquired Dominion Securities in 1987 and in 1989, Nixon Gordon became Managing Director of Investment Banking.
6 pages (1500 words) Case Study
Case Study on Royal Dutch/Shell Oil Reserves Controversy
The study provides comprehensive insights into the part played by the high rank management at the company leading to controversy of oil reserves. It describes proceedings leading to the announcement by Shell Company to amend oil reserve records. It also analyses lessons learnt from the disagreement.
4 pages (1000 words) Case Study
Chicken Production
According to the expert analysis sanitary design principles for gear and facilities ought to enable better control over the risk of infectivity of ready-to-eat (RTE) meat and poultry products throughout dispensation, and construction of new facilities and restoration of existing facilities, correspondingly.
7 pages (1750 words) Case Study
Supermercados Disco Joining Up with Royal Ahold
If it chooses to take over Santa Isabel, it will make new inroads in the Latin American market and go through the challenges a company faces when it enters a new market. In either case, the company faces new challenges. The Latin American market is full of challenges and very complex.
5 pages (1250 words) Case Study
Production and International Logistics
Efficient and successful production however is dependent on the cooperation and systematic collaboration of all other functions including logistics.It helpsorganisations deliver the expectations of its customers. The ultimate goal to satisfy customers also led to the development of production strategies.
8 pages (2000 words) Case Study
Royal Thai Airways
Briefly after on October 26, 1997, Varig Brazilian Airlines joined the consortium carrier group in an integrated worldwide air transport network. Partnership between the six carriers formed 'the strongest airline alliance in the history of commercial aviation with the most extensive network covering major destinations over six continents.' Through partnership collaboration, RTA works toward promotion of aviation rights development of Thailand's tourism industry 'as means of generating additional income both in Thai baht and foreign currencies.' Conclusively, RTA is both a brand and a national identity strategy; a corporation dedicated to 'spreading awareness around the world of the uniquenes
10 pages (2500 words) Case Study
The Royal Bank of Scotland
It must be noted that there are numerous other reasons as to why firms would chose to take this path. Such could include (Margsiri et al): The global corporate community has shown an ever-increasing trend for mergers and acquisitions. The foregoing is not only in response to the indicated list of reasons, is also a product of the increased competitiveness of globalisation and low interest rates making large sums of capital available that is seeking investment (Investors Group).
25 pages (6250 words) Case Study
Case Study on Royal Dutch/Shell Oil Reserves Controversy
It describes proceedings leading to the announcement by Shell Company to amend oil reserve records. It also analyses lessons learnt from the disagreement. After an interview review, which was done on January 2004, the
4 pages (1000 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation