Mexicana Wire Works

1816 words 8 pages
Mexicana Wire Works
In partial fulfilment Of the course requirement In Management Science 1st Term, S.Y. 2012-2013 Submitted to: Dr. Dennis Berino

Prepared by Group 5: Shyne Ampatuan Diberjohn Balinas Jo-Ann Deseo July 24, 2012

Company background
Mexicana, a subsidiary of Westover Wire Works, a Texas firm, is a medium-sized producer of wire windings used in making electrical transformers. Its product, the windings, is considered a standardized design. The production process for this involves drawing, extrusion, winding, inspection and packaging. After inspection, good product is packaged and sent to finished product storage; defective product is stored separately until it can be reworked. Please refer to the plant lay-out below: Office
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Problem 2: Discuss the need for temporary workers in the drawing department There is no use of hiring the temporary workers in the drawing department because hours for drawing are unutilized due to lack of winding and packaging hours. Since Mexicana does not have sufficient packaging hours to proceed the product after drawing and extrusion, the finished product will not be come out for delivery. Moreover, the Drawing department is not a binding constraint. However, if these former employees could do rework, they could reduce the rework inventory and fill some backorders that can increase Mexicana’s profits. Likewise, it is important to note that the Drawing department has 1,800 units (1 hr/unit) in rework inventory which is 75% of the average output per month (i.e., 2,400 units). Therefore, expediting the rework process would also free up valuable cash. Problem 3: Discuss the plant layout The current plant layout is not properly maximized. When the new equipment will be installed, an opportunity for improving the layout could arise. Thus, exchanging the locations for packaging and extrusion would create a better flow of the main product. Also, there is a need to improve the quality and reduce the rework inventory. This could capture


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