Specialty Packaging Corporation Case Study

Specialty Packaging Corporaon 1

Running Head: SPECIALITY PACKAGING CORPORATION

Specialty Packaging Copoation Ca!e !tudy  Na"e #ate Cla!! In!tucto 

Specialty Packaging Corporaon 2

Specialty Packaging Copoation i! a co"pany t$at poce!!e! poly!tyene e!in into di!po!a%le containe! t$at can %e u!ed in t$e &ood indu!ty to package di&&eent kind! o& &ood!' T$e "anage"ent $a! %een (eig$ing on t$e option! o& !toing t$ei good!' go od!' T$e option! ae  pi)ate (ae$ou!ing o pu%lic (ae$ou!ing' Pice e!ta%li!$ed %y t$e !u%contacto! !u%contacto! (ill cetainly in&luence in&luence t$e deci!ion a%out t$e a"ount o& pi)ate (ae$ou!ing !pace t$at t$at !$ould %e lea!ed' T$i! i! %ecau!e t$e co"pany only $a! "oney to in)e!t into eac$ po*ect depending on t$e !u%contacto+! ate! a! (ell a! t$e a"ount o& (ok to %e done t$u! t$e pice (ill )ay' )ay' T$u!, i& it appea! t$at t$e !u%contacto i! c$aging "oe t$an e-pected, t$e ate! o& pi)ate (ae$ou!ing !pace to %e lea!ed "ay $a)e to decea!e' Ho(e)e, t$i! i! not t$e t$e only ite" .ulie need! to con!ide' con!ide' .ulie "u!t al!o con!ide $o( "uc$ !pace t$e co"pany !$ould lea!e' I& !$e e! too too "uc$ in eit$e diection, diection, !$e can $ut t$e co"pany %y eit$e paying too "uc$, o %y not po)iding enoug$ !pace/ neit$e eo (ill %e $elp&ul to t$e goal! o& t$e co"pany' So, t$e need! o& t$e co"pany, a! (ell a! t$e pull! o& t$e o)eall "aket (ill need to to %e con!ideed ($en "aking t$i! deci!ion' deci!ion' .ulie (ill need to e-a"ine tend! o& t$e co"pany+! cuent "aket and cuent need! in ode to a!!i!t $e (it$ "aking t$i! deci!ion 0Goo)e, 1223, p' 3435' S$e "u!t al!o con!ide $o( "uc$ !pace i! eally needed' O%taining too "uc$ !pace (ill  %e a (a!te o& "oney &o t$e co"pany and can t$u! deti"entally $ut t$e co"pany' co"pany' Ho(e)e, getting too little !pace (ill $ut t$e co"pany %ecau!e it (ill not gi)e t$e co"pany ($at it need! to !ol)e it! po%le"! &o t$e ne-t t(o yea!' T$ee&oe, .ulie "u!t ty to get a !tong e!ti"ate e!ti"ate o& $o( "uc$ !pace i! eally needed o)e t$e t(o yea peiod' T$i! i! ($ee potential potential eo in t$e de"and &oeca!t (ill cetainly co"e into play' S$e "u!t %e cae&ul a%out t$i! eo &oeca!t, a! !$e need! to "ake !ue !$e doe! not calculate too !tongly one (ay o t$e ot$e' ot$e' Ideally, Ideally, !$e "ay

Specialty Packaging Corporaon 3

(ant to lea)e a %it o& oo" in t$e calculation! to &all eit$e in t$e geate o le!!e "agin depending on $o( t$e co"pany !ee"! to %e doing (it$in t$i! a!pect o& need' 6o in!tance, doe! t$e need !ee" to %e incea!ing incea!ing o decea!ing at t$i! ti"e7 ti"e7 #ete"ining ($at diection diection t$e need o& t$e co"pany i! $eading can $ope&ully $elp $e educe any "agin &o eo in one diection o t$e ot$e' T$e Aggegate poduction planning e&e! to t$e planning "et$od t$at in)ol)e! planning t$e poduction output le)el! o& poduct line! t$at !$ould %e poduced %y a &i"' T$e plan! ae coodinated t$oug$ u!ing di&&eent &unction! o& t$e &i"! !uc$ a! poduct de!ign, poduction, !ale! and "aketing 0S$i", 8 Siegel, 9, p '1;95.

Extruders N.o. of parculars Processing capacity of each parcular Capacity loss Eecve Eecve processing capacity Workers alary !verme "imit of overme per #uarter $ixed cost of each parcular per #uarter Training cost per %orker "aying o %orkers Training cost for &e'use of idle extruders

14 3000 pounds per hour 5% 250 per hours ! "15 150%#15$ !0

Thermoforming Presses 25

39

25 "15 !0

31 31 "30 45 120

0000 "3000 2500

1!0000 "!000 "4500

2000 pounds per hour

150%#15$

0000 3000 "2000 "2000

T$e de"and &oeca!t &o t$e co"pany &o t$e ne-t t$ee yea! i!/

&orecast

total

"2000 ()*+,*-

Specialty Packaging Corporaon 4

/lack plasc forecast 200'

( ii iii i)

Cum.demand forecast !!50 45'! !293 13'''

Normal Prod. days !!50 1122! 1'519 3129!

1)+2200

( ii iii i)

'509 5149 '05! 15399

( ii iii i)

3!' 5'21 '19 1'021

Cum. 6d. forecast

32-.*-)2435

-1

*.132+4-1

-1

-)*.243*-)2

3!' 140 2190' 392

152+5

Clear plast. forecast

-1

'509 12!5 19'14 35113

1))1 2009

Prod. rate units0day

 Normal Prod. days

Prod. 7rs 0employee

Prod. rate per unit

200' ( ii iii i)

'4!2 1250 94 40!4

'4!2 25'12 34!0! 3!'0

15-*4 200 ( ii iii i)

349 20355 991 450'

349 2'04 3595 43102

-1

43

!13.09523

Specialty Packaging Corporaon 5

31)4+

-1

43

!4.15'302

-1

43

'54.523095

2009 ( ii iii i)

9235 224!1 109 4950

9235 31!9! 4255 4'535

3*1

+4+.32+ *ours +orked ,y the e-ployees 

200'

Clear plast. forecast

Cost o/ producon

200' ( ii iii i)

'4!2 1250 94 40!4

1'2'!5

( ii iii i)

349 20355 991 450'

1'2'!5

( ii iii i)

9235 224!1 109 4950

1'2'!5

)+214*

)5+2

200

2009

Specialty Packaging Corporaon !

/lack plasc forecast 200'

200

2009

Cost o/ producon

( ii iii i)

!!50 45'! !293 13'''

1'2'!5

( ii iii i)

'509 5149 '05! 15399

()*+,*-

( ii iii i)

3!' 5'21 '19 1'021 )411*

1'2'!5 )5+2

References

Specialty Packaging Corporaon '

Goo)e, <' P' 012235' Automation, 012235' Automation, production systems, systems, and computer-integrated  Manufacturing ;d ed' =ppe Saddle Ri)e, Ne( .e!ey: Pentice Hall' S$i", .' K' 8 Siegel, .' G' 095 'Operations ' Operations management  '>iele!!  '>iele!! ?l)d Hauppauge Ne( Yok: ?aon+! Educational Seie!'