Mechoff case Job Shop case study

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01. Case study 1 “Mechoff – Job shop” 1 MECHOFF JOB SHOP - INTRODUCTION MECHOFF is a small company operating in the field of mechanical components for industrial air conditioning systems; Founded 30 years ago; It has 30 operators working on the shop floor; The main customers of MECHOFF are producers of industrial air conditioning systems.; Quality is the main strength of MECHOFF, as perceived by its Customers. Concern: the company is not achieving the same efficiency rate improvement as it was during the first years from its foundation. The profitability of the company is not at risk, though the slow decline in internal performance is considered an alarm signal that could result in more relevant problems in the future. Problems may be due to the more and more frequent outsourcing (cheapest solution some years ago when demand increased). At the beginning, outsourcing was used in extreme situations, three times in a quarter. Nowadays milling and grinding of SP product family are outsourced without even making a short check on internal capacity. The production of a component cannot be assigned only to one sub-supplier. Therefore, reliability of sourcing, guaranteeing a high and stable quality level has become more and more difficult. Moreover, when high volumes are required, some sub-suppliers cannot deliver on time. MECHOFF must revise its plans accordingly, in order to satisfy its customer needs. - Demand of SP family products is growing - The company is interested in accepting the order of a new customer to produce a new product that can be added to the same family. - If this order were accepted, the yearly volume required would be 2000 units for the first two years. - MECHOFF top management would be interested in knowing in which way the company could satisfy the…