Sage Costuming Company’s Statistical Analysis

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Abstract

This paper has looked at the statistics which may be employed at Sage Costuming so as to measure their quality characteristics. It has also looked into the way through which statistical analysis can be conducted. It has analyzed the major concepts connected to capacity planning. Facility location for Sage Costuming is also looked at.

The paper has developed appropriate plans to help Sage maintain a competitive advantage. Similarly, it has looked at the main components of work system design, the life cycle of the project as well as project management of the business.

Statistics to examine quality characteristics of Sage Costuming

Statistical analysis aimed at quality improvement will provide very good information for Sage as it will help in the assessment of their operational activities. Statistical analysis involves the assessment of statistics i.e. facts, information as well as figures and thereafter examining the information or data in order to establish patterns as well as trends.

There are a number of benefits of proper Statistical analysis for Sage. This is because when the firm will deal with guesswork. Statistical analysis entails studying data and also analyzing them. The data will later on be applied for decision making purposes. Some of the statistics that Sage can employ is the analysis of cost benefits. This entails balancing project costs with the benefits its benefits. Projects whose costs are greater in comparison to costs should be avoided at all costs.

Statistical analysis will enable Sage to gather, assess and also to properly interpret data. Statistical analysis will enable the Sage to provide solutions to their problems in numerous contexts. It will also add value to the decisions to be made. It will also minimize guesswork.

Capacity planning concepts

Capacity can be defined as the maximum output that can be produced by a facility. A number of questions are usually considered in capacity planning. The first one is whether the organization should have numerous small facilities or one huge facility. Secondly, the organization should check whether it is beneficial for them to expand their facility even when demand is low or to wait for demand to be high is when the facility is expanded. Organizations should also ask themselves whether it is beneficial for them to apply non-flexible or flexible capacities (Krajewski and Ritzman, 2005).

Capacity planning is very important as it helps design systems. For instance, it is capacity planning that will make Sage to know the number of machines that they need. It will also enable it to know whether the machines are sufficient. Capacity planning will make Sage to know the capacity that they need. The capacity needed is determined by forecasts.

Numerous factors will affect capacity choices for Sage. These include demand stability, competitiveness, and the nature of products. It should also be noted that capacity decisions are usually very strategic. They also have great influences on the costs of operations of Sage. It ensures that there is balance between overproduction as well as underproduction. Through this, it will ensure that Sage produces the right output. It should be noted that capacity largely determines costs.

Inefficiency is usually brought when a discrepancy exist between an organization’s capacity as well as the consumer demands. Discrepancies may make the needs of consumers not to be met. It will also result into under-utilization of resources. Existing capacity can be utilized very well when there are improvements in the effectiveness of equipments within the organization. Sage may improve their capacity by inventing new equipment, techniques, as well as materials. The firm can also improve its capacity by ensuring that there are many machines and workers, or through the purchase of extra production facilities.

Capacity planning has three classes that may be applied by Sage. The first one is lead strategy which involves capacity addition when the firm anticipates that the demand of consumers will increase. Sage should be employed by the firm since it is capable of attracting more customers from the rival firms. This strategy, however, brings about too much inventory whose management may be costly.

Lag strategy is the second strategy that may be employed by the firm. It entails adding capacity when the firm is operating at its full capacity because of an increment in consumer demand. This strategy is conservative. It minimizes wastes. It should however, be noted that it can result into the loss of potential consumers.

The third strategy is the match strategy. This entails capacity addition in very small quantities with changes in demand within the market. It is however, a very moderate strategy.

In the long term, capacity planning typically focuses on the organization’s main production facilities.

Facility location

The nature of a facility is a great determinant of the facility location. There are a number of factors affecting the location of manufacturing facilities like Sage. The firm will have very huge plants that need too much space.

For the location of Sage, I will consider the costs of construction, the costs of land, transportation modes, raw materials, disposal means, as well as labor. I am planning to locate the plant in place where labor is available, land costs are manageable, a place nearer to raw materials and where it will be easy to dispose the waste products.

For the warehouse of the company, I will consider security, costs of transportation, as well as the market of the products. I will also take into consideration government regulations. The business climate will also be considered.

It should be noted that the success of any firm depends on facility location. Facility location is therefore a very significant element that should be taken into consideration when the supply chain is being designed.

I will also consider factors like infrastructure, availability of rail, road, and air as well as sea transportation. I will also consider the location of our suppliers.

Level, chase, as well as hybrid aggregate plan to maintain a competitive advantage

Level Aggregate Plans

It ensures that there is an invariable workforce. It usually accommodates average demand. The plan is usually applied for products that are being made so as to be stocked. When the plan is applied, it increases inventory levels.

Chase Aggregate Plans

It results into the production of the exact item that is needed in every period. It ensures that both labor and machines are available for the satisfaction of periodic demands. It has the problem of constantly altering the short-term capacity.

Hybrid Aggregate Plans

It is a combination of both the level aggregate plan and chase aggregate plan. With it, options ought to be inadequate so as to assist in execution. It can make inventories to build up. It is also capable of making use of short-term sourcing.

Inventory management and Inventory control for Sage

Inventory Management and Control have to be made in such a way that they meet the strategic plan of the firm and also meet the demands of the customers. The numerous market demand changes, newer opportunities brought about by global marketing, worldwide sourcing, and newer manufacturing technologies implies that Sage should come up with proper approaches of managing inventory and controlling inventory. Although there are numerous changes which may take place in firms, the essential inventory management and inventory control principles usually remains unchanged (Stevenson, 2005).

Sage should come up with a system for inventory management and inventory control which should ensure that information is provided for effective and efficient management of materials flow. The systems should also ensure that there is effective utilization of workers as well as equipments. It should also make sure that internal activities are well coordinated and also that there is effective communication with the customers.

For effective and efficient inventory management and inventory control, Sage should ensure that there is sales forecasting as well as proper demand management. The firm should also have effective operations and sales planning. Besides, it should ensure that there is effective production planning as well as effective planning for materials requirement.

Sage will apply inventory, management techniques that will help in reducing costs of operations. It will employ Just-in-time strategies for effective management of inventory. Through JIT, the firm will only buy materials which are enough for their daily needs. At the end of the day, all the products manufactured during the day are delivered to the customers. Raw materials will be received and directly sent to the production department. Besides, manufactured products will immediately be sent to the customers.

There will be numerous suppliers as well as well as regular change of lead times. So there is dire need of proper inventory management and control systems for Sage.

There are numerous benefits that Sage will get from JIT. For instance, all the funds which are to be invested in inventories will be applied in other operations (Sucky, n.d.). Besides, there will be no need for big warehouses. Besides, throughput time will be reduced. Huge outputs will be produced. Similarly, customers will be responded to quickly. Defects will be minimized. This will reduce wastage and customer satisfaction will be improved.

With JIT, quality products will be produced as there will be no defects, there will be speedier production and delivery of products. It will also be cost effective to Sage.

Work system design, the project life cycle, as well as project management for Sage

Work systems refers to the systems where computer, humans, robots, as well as other systems integrate to conduct activities aimed at producing goods (Clancey, 1997b). Work systems presently applied have been used for quite a long duration of time. Sage can improve their through re-engineering as well as analyzing business processes. (Hammer and Champy, 1993).

It entails job design which involves giving the specifications of the content as well as the job methods. It concerns what is to be done, the person who will do the job, the manner in which the job will be done as well as the place where the job will be done (Davenport, 1993). It also incorporates ergonomics which involves the inclusion of human factors when designing the workplace.

Work Systems design also incorporates specialization, teams, working conditions, as well as methods analysis (Clancey, Sachs, Sierhuis, and Van 1998). All these will be looked at by Sage.

Conclusion

The paper has provided the statistics to be employed by Sage in measuring their quality characteristics. It has also outlined how it will perform statistical analysis. It has analyzed the main concepts concerning capacity planning as well as Sage’s facility location. It has also analyzed the major concepts of inventory planning and management.

References

Clancey, W. J. (1997). In Human and Machine Expertise in Context. Menlo Park, California: The AAAI Press.

Clancey, W. J., Sachs, P., Sierhuis, M. and Van H, R. (1998). International Journal on Human-Computer Studies, vol 49 pp. 831-865.

Davenport, T. H. (1993). Process Innovation: Re-engineering Work through Information Technology. Boston: Harvard Business School Press.

Hammer, M. and Champy, J. (1993). Re-engineering the Corporation. New York: Harper Collins Publishers, Inc.

Krajewski, L.J & Ritzman, L. P. (2005). Operations Management: Processes and Value Chains. Upper Saddle River, New Jersey: Prentice Hall.

Stevenson, W. J. (2005). Production Operations Management. Boston, MA: Irwin/McGraw-Hill.

Sucky, E. (n.d.). Inventory Management in Supply Chains: A Bargaining Problem. International Journal of Production Economics, vol 93, pp. 94: 253.

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