Question

If your weekly capacity is 500 units and your cutomer orders 700 units for delivery in fiscal week 40 (3 weeks from now), which of the following are viable / good options?

Group of answer choices

A. Change the plan - build some units late

B. Change the plan - build some units early

C. Get more capacity (OT)

D. Kaizen / eliminate muda

E. Turn down the order

Answer 1

A. Change the plan - build some units late - This is not a viable option because producing some units late will cause other orders to suffer and will dissatisfy other customers.

B. Change the plan - build some units early - This is perhaps the best option if capacity exists for producing these units early. This is one of the viable options.

C. Get more capacity (OT) - If 'B' becomes not viable due to no capacity left, overtime is another option to implement some extra production and meet the new order.

D. Kaizen / eliminate Muda - This is also a viable option in that we have 3-weeks to deliver which is not very less considering a small and temporary improvement to have some additional capacity (e.g. develop a manual line of Flexi-line to produce some extra units)

E. Turn down the order - This is not a very good option as it will directly cause customer dissatisfaction.