Oak Hills Case Essay

899 Words Nov 13th, 2015 4 Pages
Executive Summary

The Oak Hills facility is a manufacturing division of The Oil and Gas Service Company (TOGS). It manufactures special testing equipment used by the Exploration and Extraction (E&E) unit in the search for oil and gas. Oak Hills battled major internal problems which included high inventory levels and long lead times for both domestic and international orders, in spite of lowered demand. Oak Hills doesn’t utilize resources such as MRP to plan production, lacks in manager to employee communication, wastes time in set-up procedures, has an inefficient facility layout as well as idle time during lid manufacturing and lack of quality inspections in the production process. TOGS trusts that a supply chain team, through the
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One of the main methods in waste reduction is 5S. By using this method, Oak Hills facility can be more clean and organized, thus productivity will improve and processing waste will decrease. Finally, management at Oak Hills facility needs to avoid non value added movement of parts and employees around the production floor. An effective lean layout can decrease unnecessary movements of workers, parts, and customers to achieve an efficient product flow.

To improve the supply chain, Oak Hills must balance the flow of materials with customer demands through lowest total cost and optimal service level. To achieve this, Oak Hills should incorporate a lean system to move past their current stage of being internally focused and begin to influence partners across the entire supply chain. Although employees are cross-trained, the lack of efficiency in the production process leads to waste. To become more efficient, Oak Hills may consider implementing internal measures to monitor performance, producing smaller batches of units more frequently, creating a forecast visibility report that is updated daily to notify next day staff of changes, re-sequencing the process flow to eliminate waste and improve productivity.

When implementing a lean system, it’s expected that employees will be resistant to change. To boost morale, top management needs to continuously communicate with the workforce to keep employees informed about changes within the organization. Managers must

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