Mobile Phone Repair Case
Mobile Phone Repair Case代写 Repair of mobile phones. Business has been acquired from a major phone manufacturer Two major manufacturers
Environment Mobile Phone Repair Case代写
- Repair of mobile phones. Business has been acquired from a major phone manufacturer
- Two major manufacturers
- 7 different phone models
- Three types of repair: Level 1 (cosmetic), Level 2 (display), Level 3 (logic board)
- Revenue comes from a fee paid per phone repaired (must adhere to SLA compliance): the fee is the greatest for level 3 and the lowest for level 1:
- Level 1: $20/unit
- Level 2: $50/unit
- Level 3: $120/unit
- Cost of used repair components is reimbursed at a purchased value plus a 10% mark-up. Non-used inventory is not reimbursed
- Phones come to the plant in lots of 1,000 – 3,000 units. Multiple number of lots per day
- One manufacturer and model per lot
- The mix of repair levels in the lot is unknown and need to be triaged
- Legacy management has a cost-center mentality. Not P/L oriented or skilled
- 300 repair phone components across all brands and models
- 20% of components are re-usable across the brand’s phone models. Medium cost per unit Mobile Phone Repair Case代写
- 10% of components are non-cancellable / non-returnable. Low to medium cost per unit
- Manufacturing layout is assembly line: sequential operations.
- Shop floor software system records phone at the beginning and at the end of production line
- Repair components are stored at the shop floor in one place and are brought to production line by “runners”
- Labor force is hired based on “not to exceed a certain $$ per hour pay” principle
- Total shop floor headcount – 600 people. 5 days per week. Two shifts per day
- Annual revenue – $50M. Average inventory investment – $10M and is growing
- Repair components delivery lead-time:
- 50% at 3 days
- 30% at 1 week
- 20% at 2 weeks or more
- Losing money operation. Negative trending.
- Growing WIP of semi-repaired phones. Increasing lead-times
- Increasing inventory investment, especially for slow-moving inventory
- The frequency of out-of-stock situation is increasing
- Increase in headcount provides only marginal improvement in productivity and lead-time reduction
Assignment Mobile Mobile Phone Repair Case代写
- Answer all questions below
- Using your answers, prepare 1-2 page executive summary for operational turnaround
- No need for calculations but feel free to make numerical assumptions and use them to support your case
- What material planning system would you suggest?
- What is the likeliest main capacity constraint? May its nature impact existing manufacturing layout?
- Does the management use a proper hiring strategy?
- How would you address the inherent vagueness of levels of repair mix for incoming phones?
- What would you propose (if anything) to change in shop floor operations? Justify your answer