M&L manufacturing M&L manufacturing

Submitted to: Dr Abdel Submitted to: Dr Abdel Aziz MohamedAziz Mohamed

Prepared by:Prepared by:Fady FikryFady Fikry

Israa MohamedIsraa MohamedMohamed el KadyMohamed el Kady

Tony WafikTony Wafik

AgendaAgenda

Introduction & case analysisIntroduction & case analysis Tools used to face the challenges Tools used to face the challenges Recommendations Recommendations

M&L manufacturing M&L manufacturing

1.1. M&L manufacturing makes various M&L manufacturing makes various components for printers and copiers.components for printers and copiers.

2.2. The company also distribute these The company also distribute these and similar items to office supply and similar items to office supply stores and computer stores as stores and computer stores as replacement parts.replacement parts.

3.3. The company makes about 20 The company makes about 20 different items.different items.

The company does not use the forecasts The company does not use the forecasts for production planning, instead the for production planning, instead the operations manager decides which items operations manager decides which items to produce and the batch size based partly to produce and the batch size based partly on orders and the amount in inventory on orders and the amount in inventory (The products that have the fewest (The products that have the fewest amount in inventory get the highest amount in inventory get the highest priority.) priority.)

As a result the company being As a result the company being overstocked on some items and out of overstocked on some items and out of stock in others.stock in others.

The price of raw materials have been The price of raw materials have been increased.increased.

Tools used to face the Tools used to face the challengechallenge

Because of competitive pressure and Because of competitive pressure and falling profits the manager has decided falling profits the manager has decided to undertake a number of actions to undertake a number of actions depending on formal forecasting depending on formal forecasting procedure in order to improve procedure in order to improve production planning and inventory production planning and inventory management.management.

The manager focused on two products. The manager focused on two products.

Benefits of using a formal Benefits of using a formal forecastforecast

1.1. To overcome the periodic out of To overcome the periodic out of stock situation.stock situation.

2.2. One of these products will become One of these products will become increasingly important to future increasingly important to future growth plans.growth plans.

3.3. Enhance the company profitsEnhance the company profits

The next four weeks The next four weeks forecastforecast

According to product 1 we can see According to product 1 we can see that there is a gradual increase of 3 that there is a gradual increase of 3 pieces every week, despite that pieces every week, despite that there is an extraordinary order in one there is an extraordinary order in one of the 14 weeks.of the 14 weeks.

For product 2 we can’t find a trend, For product 2 we can’t find a trend, so it would be found easily by taking so it would be found easily by taking the average of the 14 weeks. the average of the 14 weeks.

The next four weeks forecastThe next four weeks forecastWeekWeekProduct 1Product 1Product 2Product 2

1150504040

2254543838

3357574141

4460604646

5564644242

6667674141

779090**4141

8876764747

9979794242

101082824343

111185854242

121287874949

131392924343

141496964444