1

TABLE OF CONTENTS

1. Introduction..............................................................................................................................4

2. Objectives................................................................................................................................5

3. Solution....................................................................................................................................5

3.1. Enterprise Resource Planning..........................................................................................5

3.1.1. Ronin Gallery...........................................................................................................5

3.1.2. Primary Products and Offerings..............................................................................6

Japanese Prints (Ukiyo-e)....................................................................................................6

Contemporary Japanese Prints.............................................................................................6

Japanese Scrolls and Calligraphy........................................................................................7

Paintings..............................................................................................................................7

Asian Art Objects.................................................................................................................7

Art Appraisals and Authentication.......................................................................................7

3.1.3. Key Services............................................................................................................7

Exhibitions & Art Sales.......................................................................................................7

Consultation and Advisory..................................................................................................7

Educational Initiatives.........................................................................................................8

Museum and Institutional Services......................................................................................8

3.2. MRP Records...................................................................................................................8

3.3. Lean Operations.............................................................................................................10

3.3.1. Inventory Control...................................................................................................11

Service Organization..........................................................................................................11

Product Company..............................................................................................................11

3.3.2. Process of Production............................................................................................11

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Service Organization..........................................................................................................11

Product Company..............................................................................................................11

3.3.3. Standardization vs. Customization........................................................................12

Service Organization..........................................................................................................12

Product Company..............................................................................................................12

3.3.4. Lead Time and Wait Time......................................................................................12

Service Company...............................................................................................................12

Product Company..............................................................................................................12

3.3.5. Waste Reduction....................................................................................................13

Service Company...............................................................................................................13

Product Company..............................................................................................................13

3.4. Just-In-Time Inventory..................................................................................................13

3.4.1. Footwear................................................................................................................14

3.4.2. Apparel..................................................................................................................15

3.4.3. Sports Equipment and Accessories........................................................................15

3.4.4. Services..................................................................................................................16

3.4.5. Nike Customers.....................................................................................................16

3.4.6. Nike Locations.......................................................................................................17

Global Presence.................................................................................................................17

Retail Stores.......................................................................................................................17

Online Presence.................................................................................................................17

Partnerships and Retailers..................................................................................................17

Manufacturing and Distribution........................................................................................17

3.4.7. Implementing Just-In-Time (JIT)..........................................................................18

3.5. Kanban...........................................................................................................................19
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3.6. Standard Time................................................................................................................21

3.6.1. Calculate the Average Observation Time...............................................................21

Sum of all Observations.....................................................................................................22

3.6.2. Apply Performance Rating....................................................................................22

3.6.3. Apply Allowances..................................................................................................22

3.6.4. Final Standard Time Calculation...........................................................................22

3.7. Sample Size...................................................................................................................22

3.7.1. Calculate the Sample Standard Deviation (s)........................................................23

3.7.2. Calculate the Required Sample Size (n)................................................................24

3.8. Utilization, efficiency, and productivity........................................................................24

3.8.1. Calculate Utilization, Efficiency, and Productivity...............................................25

3.8.2. Comment on the Owner's Satisfaction with Overall Productivity.........................26

3.8.3. Will the Owner Be Satisfied?................................................................................26

4. References..............................................................................................................................27
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LIST OF FIGURES
Figure 1: Art that speaks of a forgotten era.....................................................................................6
Figure 2: Nike’s Success................................................................................................................13
Figure 3: One of recent footware of Nike’s named as “Nike Invincible 3”..................................14
Figure 4: Nike’s “Move to Zero” Sustainable Apparel..................................................................15
Figure 5: Nike’s Soccer Gear.........................................................................................................16
Figure 6: Number of Nike’s Retail stores in each year from 2009 to 2024...................................18
Figure 7: Illustration of Implementation of JIT for production.....................................................19
Figure 8: Kanban Practices............................................................................................................20

LIST OF TABLES
Table 1: Number & Time of Observations.....................................................................................21
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1. Introduction

This task analyzes three critical ideas in activities the board: Material Prerequisites Arranging
(MRP), Just-in-time (JIT), and Occupation Plan. Every one of these ideas assumes a pivotal part
in streamlining creation processes, further developing proficiency, and adjusting hierarchical
assets to client interest (Van lair Broeck and Parker, 2017). Understanding their singular
capabilities and how they interrelate is fundamental for present day organizations expecting to
stay cutthroat in a quick moving, worldwide market.

2. Objectives

 Apply MRP to determine material requirements and production schedules.

 Explain and utilize the key elements of JIT/Lean to improve efficiency.
 Understand job design principles and their impact on worker productivity.
 Evaluate work areas using relevant performance metrics for efficiency and effectiveness.

3. Solution

3.1. Enterprise Resource Planning

ERP is a system for the coordinated control of key business activities, which can be in real time
and information technology supported. ERP is a system for the coordinated control of key
business activities, which can be in eal time and information technology supported.

3.1.1. Ronin Gallery

The Ronin Gallery is a family own company that started with the purchase of a collection of
Japanese woodblock prints. The current owner David Libertson’s parents first began their love
for the pieces in 1975 when they opened a gallery in New York City. Today Ronin Gallery has
the largest inventory of the Japanese woodblock prints in the United States. Besides a base with a
physical presence, it features an online shop that lovers of art can purchase anywhere near 8 000
 6

cataloged paintings.

Figure 1: Art that speaks of a forgotten era

3.1.2. Primary
Products and Offerings

Japanese Prints (Ukiyo-e)

It is most famous for ukiyo-e prints collected from the 17th to the 19th centuries that is the
considered to be displayed in Ronin Gallery. These print mediums include figures such as kabuki
actors, beautiful women, scenery and narratives from the legends of Japan. The subjects are
revealed through ukiyo-e masters, including Hokusai, Hiroshige, Kiyoshi Saito and Kuniyoshi
(Chun Wu, 2003). These prints, are usually easy to obtain and mostly can attract a lot of
collectors since they have historical and artistic value.
Contemporary Japanese Prints

Further, Ronin Gallery exhibits works of current Japanese artists who continue to use the
principle and transform it to a modern print making art. These artists sometimes evolve form and
 7

content and always respect the tradition of the Japanese art. Some of the contemporary artists
whose works the gallery possess are Shikō Munakata, Takahashi Hiroshi and Kano Toshiaki
(Prepare, Apply, and Confirm with MyOMLab TM, n.d.).

Japanese Scrolls and Calligraphy

This Festival consist of Japanese Scrolls and Calligraphy.This gallery may also use kakemono,
which is a hanging scroll, shikishi, which is a square art board and shodo, which is a Japanese
calligraphy. These are paintings are usually done by the most famous calligraphers or painters
 8

Paintings
Currently, Ronin Gallery also specializes in the sale of Japanese ink paintings (sumi-e) and other
genres of traditional Japanese painting. These can be very subtle like depicting the beauty of
nature, outlooks, and even the spirits.

Asian Art Objects

Aside from prints and paintings, Ronin Gallery has added choice Asian art pieces derived from
ceramics, sculptures, and textiles that fit the gallery’s artistic and cultural context encompassing
Japanese and East Asia...

Art Appraisals and Authentication

Art Valuations and Authenticity Certificate. Art collection valuation services offered at Ronin
Gallery are professional services for collectors, investors and museums. This way, the gallery is
all equipped to check the authenticity of the works, especially valuable ukiyo-e prints, and
estimate the value on the current market

Key Services

Exhibitions & Art Sales

Currently, Ronin Gallery has a biennial schedule of exhibitions either at the New York space or
in collaboration with museums and institutional spaces worldwide. These exhibitions are ideal
since it enables collectors and art lovers to view the best works arranged in the best theme
possible often with specific themes from www.scirp.org (n.d.). This has also sales outlets for the
gallery with artworks either sold directly or through auctions which are both on traditional and
via website.

Consultation and Advisory

Consultation services are available for collectors, art investors and institutions interested in
developing their collection or enhancing it. It entails giving what Officers acquisition advice as
well as advice on how to retain and exhibit artwork. They may also framing services for clients
who might want to properly mount their pieces in the appropriate manner.
 9

Educational Initiatives
As a matter of fact, Ronin Gallery too has an educational method of propounding Japanese art
where they not only supply prospects with relevant data but also actively conduct meetings and
cooperate with museums for the diffusion and popularization of ukiyo-e and other forms of
traditional Asian art.

Museum and Institutional Services

It collaborates with museums and organizations to supply works for exhibitions; loans its own
collection for educational and curatorial uses.

An ERP system benefits Ronin Gallery in several key ways:

 Tracks artworks in real-time, ensuring accurate inventory, sales, and storage management.
 Helps personalize client interactions, track preferences, and manage follow-ups to
improve customer service and sales.
 Streamlines accounting, invoicing, and financial reporting, providing insights for better
decision-making.
 Automates order processing and provides real-time data on sales trends, improving
efficiency and customer satisfaction.
 Manages supplier relationships, ensures timely procurement, and optimizes costs for art-
related materials.
 Organizes exhibition logistics, schedules, and budgets, ensuring smooth operations and
collaboration.

3.2. MRP Records

You can see in the following figures MRP records in the respective tables are filled.
 10

3.3.

Lean Operations

Lean operations reduce waste and increase efficiency in an effort to maximize value. Although
the fundamental ideas of lean are applicable to both product and service businesses, the way they
are implemented varies depending on the type of firm (Chun Wu, 2003). The following are five
significant distinctions between lean operations in a product firm and a service organization
 11

3.3.1. Inventory Control

Service Organization

Inventory usually refers to staff availability, knowledge, or service capacity in a service-oriented

firm (such as consulting, healthcare, or education). In a service setting, inventory management
involves striking a balance between human resources and making sure that capacity (such as
consultants or physicians) matches client demand (Prepare, Apply, and Confirm with MyOMLab
TM, n.d.). Optimizing worker schedules, cutting wait times, and making sure the proper
personnel are accessible when they're needed are the main goals of lean initiatives.

Product Company

Raw materials, work-in-progress items, and completed things are all included in inventory in a
manufacturing or product-focused business. Optimizing stock levels is the main goal of lean
initiatives in order to prevent stockouts, which result in lost sales, and excess inventory, which
ties up cash (Heizer, Render and Munson, n.d.). Just-in-time (JIT) inventory is frequently utilized
to maintain manufacturing efficiency while avoiding overstocking

3.3.2. Process of Production

Service Organization

Usually intangible, services are created and consumed concurrently (for example, a client
receives advice while a consultant works). Reducing variability, increasing service consistency,
and getting rid of pointless processes in the service delivery process are the main goals of lean
operations in service firms (Van den Broeck and Parker, 2017). To cut down on wait times and
inefficiencies, this may entail optimising customer interactions and enhancing the service
delivery process.

Product Company

Product firms concentrate on supply chain management and actual manufacturing procedures.
Lean product firms frequently use methods like material handling, setup time reduction,
machinery optimisation, and value stream mapping to find waste in the production line (Chun
 12

Wu, 2003). Establishing a seamless, effective movement from raw resources to final goods is the
aim.

3.3.3. Standardization vs. Customization

Service Organization

Customized services are frequently offered to satisfy the demands of specific clients (e.g.,
personalised treatment plans in healthcare or bespoke solutions in consulting). In order to
preserve quality while allowing for customization, lean operations in service organizations
prioritise standardising and optimizing procedures wherever feasible (www.scirp.org, n.d.). Best
practices and standard operating procedures (SOPs) are employed to increase productivity
without compromising customization.

Product Company

To guarantee constant quality and cut waste, product firms frequently rely on standardised
production procedures. Most products are manufactured in greater quantities and require less
personalization (Heizer, Render and Munson, n.d.). In order to reduce waste and boost efficiency,
lean manufacturing frequently entails streamlining assembly line procedures and optimising
repetitive activities.

3.3.4. Lead Time and Wait Time

Service Company

Long contact center hold times or missed service appointments are two examples of wait periods
that may be a major source of customer dissatisfaction in service firms. In the service sector, lean
operations emphasize shorter wait times, better communication, and faster reaction times (Van
den Broeck and Parker, 2017). Methods like dynamic scheduling and employee cross-training
assist guarantee that client needs are satisfied as effectively as feasible.

Product Company

The goal of product companies is to cut down on manufacturing lead times from order reception
to product delivery (Heizer, Render and Munson, n.d.). JIT production and Kanban are two
 13

examples of lean concepts that assist cut down on downtime, shorten the time between
manufacturing operations, and guarantee that materials arrive precisely in time for production.
Streamlining logistics and cutting production lead times are other priorities.

3.3.5. Waste Reduction

Service Company

Inefficient human labor, such as needless client encounters, excessive handoffs, or inadequate
communication, is frequently the source of waste in service businesses. By cutting out pointless
procedures, lean in services seeks to increase customer happiness, decrease rework (such as
multiple consultations), improve employee training, and streamline operations.

Product Company

Overproduction, excess inventory, flaws, or needless production movement can all result in
waste in product firms. The manufacturing floor is organized, downtime is decreased, quality is
enhanced, and unnecessary operations are eliminated with lean techniques like 5S (sort, set in
order, shine, standardize, sustain). Reducing the physical waste brought on by overproduction,
faulty products, or ineffective assembly is the aim.

3.4. Just-In-Time Inventory

Nike, Inc. (stylized as NIKE) is an American athletic footwear and apparel corporation
headquartered near Beaverton, Oregon, United States. It is the world's largest supplier of athletic
shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of
US$46 billion in its fiscal year 2022.

Figure 2: Nike’s Success

 14

3.4.1. Footwear

Nike offers a wide range of shoes for runners, from casual to professional athletes, including
iconic lines like Air Max, Nike Free, and Nike Zoom. The company is especially popular for its
high-performance basketball shoes, such as the Air Jordan line and Nike LeBron shoes. Nike
produces fashionable sneakers like the Nike Air Force 1 and Nike Dunk, which have become
cultural icons. Nike designs footwear for other sports such as soccer (e.g., Nike Mercurial),
tennis (e.g., NikeCourt), and golf.

Figure 3: One of recent footware of Nike’s named

as “Nike Invincible 3”
 15

3.4.2. Apparel

Nike's sportswear offerings include items like athletic shorts, t-shirts, leggings, sports bras, and
jackets for various sports like running, basketball, and training. Nike’s apparel lines include Nike
Pro, designed for high-intensity workouts, and Dri-FIT technology, which helps wick moisture
away from the skin. Nike also creates casual, lifestyle-focused collections, often featuring their
iconic Swoosh logo, such as Nike Sportswear and Nike Tech Fleece.

Figure 4: Nike’s “Move to Zero” Sustainable Apparel

 16

3.4.3. Sports Equipment and Accessories

Nike offers soccer balls, basketballs, golf clubs, and other sport-specific accessories. The brand
provides training tools like resistance bands, dumbbells, and fitness trackers (e.g., Nike Training
Club app). Nike has ventured into wearable technology with Nike Training Club and the Nike+
platform (now part of Nike Run Club), which tracks performance metrics.

Figure 5: Nike’s Soccer Gear

3.4.4. Services

A fitness app providing guided workouts and fitness plans. An app for runners, offering tracking,
training programs, and a community of runners. A customization service where customers can
design and personalize their own shoes and apparel. Offers benefits like free shipping, early
access to product launches, and exclusive member discounts.
 17

3.4.5. Nike Customers

Both professional and amateur athletes, who use Nike products for their sports-specific
performance. People who engage in regular physical activity, using Nike’s gear for training,
running, and workouts. Those who purchase Nike’s lifestyle products for fashion or everyday
use, such as the trendy Air Force 1 or Nike Air Max sneakers. Nike targets a younger
demographic with trendy sneakers, collaborations, and sports-inspired streetwear. Nike appeals
to a wide range of customers globally, particularly with its strong presence in markets like North
America, Europe, and Asia.

3.4.6. Nike Locations

Global Presence

Nike operates in more than 190 countries and is available in major cities worldwide, including
flagship stores in cities like New York, Los Angeles, London, Tokyo, Paris, and Shanghai. Nike’s
retail network includes both company-owned stores and third-party retail partners.

Retail Stores

Nike has its own branded retail stores in major metropolitan areas. These stores sell the full range
of products from footwear and apparel to accessories and equipment. Some of these stores also
include innovative features, like Nike Live stores, which use data to personalize the shopping
experience. Discounted outlets offering Nike products at reduced prices.

Online Presence

Nike’s e-commerce platform is a major sales channel, offering a wide range of products for
purchase directly to consumers worldwide. Nike’s mobile apps like Nike Training Club, Nike
Run Club, and SNKRS offer digital services for fitness tracking and exclusive product releases.

Partnerships and Retailers

Nike also distributes its products through a network of third-party retailers like Foot Locker, JD
Sports, Dick’s Sporting Goods, and others, particularly in regions where they do not have their
own physical stores.
 18

Manufacturing and Distribution

Nike’s global manufacturing network includes suppliers primarily in Asia, with key
manufacturing partners located in countries like China, Vietnam, Indonesia, and Thailand. The
company has distribution centers around the world, including in the United States, Europe, and
Asia, to ensure efficient global supply chain operations.

Figure 6: Number of Nike’s Retail stores in each year from 2009 to 2024

3.4.7. Implementing Just-In-Time (JIT)

Nike adopted Just-in-Time (JIT) inventory management to enhance its supply chain and reduce
costs:

1. Lead Times Reduced: Nike reduced lead times by 40% by implementing JIT.
 19

2. Increased Productivity: Nike increased productivity by 20% through the usage of JIT.
Nike introduced new models 30% faster by utilising Just-In-Time (JIT). By reducing
surplus inventory, Nike was able to reduce inventory costs.
3. Reduced Overproduction Risk: Nike reduced the risk of overproduction by only
producing and shipping things when necessary. Nike made and shipped products only as
needed, reducing the likelihood of stockouts. Nike was able to better synchronise
production with market demand by implementing Just-In-Time (JIT).

Figure 7: Illustration of Implementation of JIT for production

3.5. Kanban

To calculate the number of Kanbans required for Blue Wave Enterprises' candle production
process. we can use the following formula for determining the number of Kanbans needed:
 20

Number of Kanbans=Daily Demand × ( Lead Time+ Safety Stock ) ×Customer ¿ ¿

Where:

Daily Demand=3000 Packages

Lead Time=4 days

Safety Stock=1 day

Container ¿ 250 Packages

Calculating total demand during lead time plus safety stock in the following step:

Lead Time + Safety Stock=4 +1

¿ 5 Days

Total Demand of 5 Days=3000 × 5

¿ 15,000 Packages

Calculating the number of containers needed:

Total Demand
15,000 Packages
Container ¿ ¿ =60Containers ( Kanbans ) ¿
250 Packages /Container

60 Kanbans are needed to maintain an efficient flow of candles through the production and
inventory system. This means that 60 containers (each holding 250 packages of candles) will be
in circulation, moving between the different stages of production and storage.
 21

As each container reaches its capacity, production will be triggered, ensuring that candles are
produced and delivered just in time to meet customer demand without holding excessive
inventory.

3.6. Standard Time

To determine the standard time for changing the connectors, we need to follow a series of steps,
considering the observation times provided.

3.6.1. Calculate the Average Observation Time

First, we calculate the average of the 10 observation times.

Table 1: Number & Time of Observations

No. Value (in minutes)

1 7.17

2 7.23

3 6.98

4 7.05

5 7.54
 22

6 7.33

7 7.11

8 7.27

9 7.09

10 6.99

Sum of all Observations

7.17+7.23+ 6.98+7.05+7.54+7.33+ 7.11+7.27+7.09+ 6.99=71.76

Now, divide this sum by the number of observations (which is 10)

71.7610
Average Observation Time=
10

Average Observation Time=7.176 Minutes

3.6.2. Apply Performance Rating

If the workers are performing at standard performance (100%), no adjustment is necessary. If a

performance rating is given, we would adjust the time. Since no performance rating is provided,
we assume that the observed workers are performing at normal or standard rate (100%), so no
adjustment is needed.

3.6.3. Apply Allowances

Allowances account for rest periods, delays, and other interruptions that are normal in any work
process. A common allowance factor in manufacturing environments is 10%, but since no
allowance is specified in the problem, we will assume no allowance for this calculation.
 23

3.6.4. Final Standard Time Calculation

Since no performance rating adjustment or allowance is provided, the standard time is simply the
average observation time.

Standard Time=7.176 Minutes

3.7. Sample Size

We can use the margin of error formula for estimating the sample size when the standard
deviation (σ ) of the population is unknown, and the desired confidence level is high (99%).

The formula for calculating the required sample size (nnn) for estimating a mean with a specific
margin of error at a given confidence level is:

n= ( ZE × Eσ ) ×2
Where

Z=Corresponding ¿ the desired confidence level ( for 99 % confidence , Z=2.576 )

σ =estimated population standard deviation

E=desired margin of error ( ¿ this caes ,2 % of the mean )

We will need to estimate the standard deviation from the sample data, calculate the margin of
error, and then determine if the sample size of 10 meets the required accuracy.

3.7.1. Calculate the Sample Standard Deviation (s)

From the previous problem, we have the following observation times:

No. Value (in minutes)

1 7.17

2 7.23
 24

3 6.98

4 7.05

5 7.54

6 7.33

7 7.11

8 7.27

9 7.09

10 6.99

Here are the calculations:

Mean=7.08 minutes

Calculating the sample standard deviation

s= √ 0.0395

s=0.199 minutes

3.7.2. Calculate the Required Sample Size (n)

Now that we have the sample standard deviation s=0.199minutes, we can calculate the required
sample size using the formula.

Where,

Z=2.576 ( for a 99 % confidence level )

σ =0.199 ( standard deviation¿ sample )

 25

Substitute the values into the formula

SD 0.199 0.199
ME=Z × ME=2.576 × =2.576 × =2.576 ×0.0629=0.162
√n √ 10 3. .162

So, the margin of error is approximately 0.162 minutes.

3.8. Utilization, efficiency, and productivity

To calculate the utilization, efficiency, and productivity, we need to break down the data
provided and use the appropriate formulas.

Given Information

Shift duration=8 hours (480 minutes)

Lunch break=30 minutes

Two 10 minute breaks=20 minutes

Total time for breaks=30 minutes+20 minutes=50 minutes

Productive time=7 hours (420 minutes)

Number of workers =3 workers

Average output per worker per shift=58 sets of 20 connectors

Standard time=7.18 minutes(as calculated∈Q 6)

3.8.1. Calculate Utilization, Efficiency, and Productivity

Calculating total time available :

Total time available=8 hours−0.5 hours−0.167 hours−0.167 hours=7.166 hoursApproximately
7 hours and 10 minutes

Calculating total productive time :

Total productive time=3 workes ×7 hours per worker=21 hours
 26

Calculating Utilization :
21 hours
Utilization= ×100 % ≈ 293.2 %
7.166 hours

Calculating total output :

Total output=3 workers ×58 sets per worker × 20 connectors per set=3480 connectors Calculating
Efficiency of connectors :
3480 connectors
Efficiency= ×100 % ≈ 165.7 connectors /hours
21 hours

Calculating Productivity of connectors :

3480 connectors
Productivity = ≈ 165.7 connectors /hour Utilization = 293.2%
21 hours
Efficiency = 165.7 connectors/hours
Productivity = 165.7 connectors/hour

3.8.2. Comment on the Owner's Satisfaction with Overall Productivity

1) Utilization - At 87.5%, utilization is relatively good. The workers are engaged in

productive work for most of the available time, and the loss in time (due to breaks and
other non-productive time) is within a reasonable range.
2) Efficiency - The workers are performing at 100% efficiency, meaning they are working at
the expected rate (as defined by the standard time). This suggests the workers are doing
the job as efficiently as the standards predict.
3) Productivity - The productivity is 8.29 sets per worker-hour, which reflects the output
produced per unit of worker time. This is a decent productivity level, though the owner
may want to evaluate whether this meets their expectations for efficiency and cost-
effectiveness.

3.8.3. Will the Owner Be Satisfied?

Given that the workers are working at 100% efficiency and the utilization is 87.5%, the overall
productivity rate (8.29 sets per worker-hour) is acceptable, but there is always room for
improvement, especially in terms of maximizing time utilization.
 27

Owner's concerns about productivity may center around cost-effectiveness while the workers are
producing good results, the breaks and downtime (12.5% of the shift) could potentially be
reduced. The owner might expect slightly higher productivity if this downtime is minimized
further. If the owner is looking for more cost-effective output (higher productivity per worker-
hour) or if labor costs are a key consideration, there may be concerns about improving utilization
even further (e.g., by reducing non-productive time or increasing automation).

References

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Strutner, S. (2020a). 3 Companies, 3 Successful ERP Implementations. [online] Oracle NetSuite.

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