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    Fuxing Caster Case Study

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    Phạm Phương Anh
    Fuxing Caster Company Ltd. assembles balancing mounts in Yantai, China and has experienced significant sales growth but struggles with on-time delivery due to production issues. The company sources materials from local vendors and assembles mounts with a three person team. Production levels vary greatly each month, creating component part shortages and excess inventory. The company aims to improve production forecasting, capacity planning, and inventory management to better meet demand.

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    Fuxing Caster Case Study

    Uploaded by

    Phạm Phương Anh
    28 views1 page
    Fuxing Caster Company Ltd. assembles balancing mounts in Yantai, China and has experienced significant sales growth but struggles with on-time delivery due to production issues. The company sources materials from local vendors and assembles mounts with a three person team. Production levels vary greatly each month, creating component part shortages and excess inventory. The company aims to improve production forecasting, capacity planning, and inventory management to better meet demand.

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    Fuxing Caster Company Ltd. assembles balancing mounts in Yantai, China and has experienced significant sales growth but struggles with on-time delivery due to production issues. The company sources materials from local vendors and assembles mounts with a three person team. Production levels vary greatly each month, creating component part shortages and excess inventory. The company aims to improve production forecasting, capacity planning, and inventory management to better meet demand.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views1 page

    Fuxing Caster Case Study

    Uploaded by

    Phạm Phương Anh
    Fuxing Caster Company Ltd. assembles balancing mounts in Yantai, China and has experienced significant sales growth but struggles with on-time delivery due to production issues. The company sources materials from local vendors and assembles mounts with a three person team. Production levels vary greatly each month, creating component part shortages and excess inventory. The company aims to improve production forecasting, capacity planning, and inventory management to better meet demand.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Abstract

    Fuxing Caster Company Ltd. assembles balancing mounts for machine tool builders in Yantai,
    China.
    significant sales growth => not able to keep pace with demand => On-time delivery suffered =>
    make changes => re-evaluate how production levels are forecasted, capacity is calculated,
    component part and finished product inventories are controlled, and standard costs are
    determined.

    Background:
    In Yantai, 2010
    assembles vibration-dampening, machine balancing mounts
    approximately 50 clients and 1 factory
    sources materials from 11 domestic vendors within 200km

    Problem
    75% customers (Chinese OEM) account for 90% sales => negotiate low prices and very short
    lead times
    Sales growth but assemble as production forecast output because labor utilization (fixed term
    labor contracts) and finance
    New contracts => not able to sufficiently smooth output => component part shortages and not
    enough capacity

    Assembly Operation
    Spend CNY 40 to place a component part order
    Spend CNY 0.03 per part per month to store
    Spend CNY 0.05 per mount per month to store
    Mounts vary from 1400 to 3500 per month => impossible to assemble due to mura (unevenness
    in productivity and quality), and muri (overburden of machines, managers, and production
    associates) => need smoothed production forecast
    change quantity of component parts and mounts in inventory, presently 2600 mounts
    three assembly workers => one installing pads and balancing screws => one assembles bearings
    => one puts on shafts, wheels, and iron segments.
    Workers 7 hours shift (actual 5h), 20 days monthly, CNY 3000 monthly no OT

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