Case Study II – Production Planning
Plato Specialty Chemical Co. decided to expand its portfolio by acquiring Chemco in Middlebury, CT and Aristo in Cary, NC. The effort to bring the two companies together was disastrous as the two companies operated in totally different ways. The following describes how production planning was done at both locations.
Please prepare a 2-page paper indicating which method of planning would be most effective based on what you have learned so far in the course. Please advise which individuals or departments would do a better job. Please provide details to support your answer.
Aristo: This is the responsibility of the Contract Manufacturing Group. All relationships with subcontractors are handled by the Manufacturing Managers. They do all interviews with potential subcontractors and work with Legal to complete the contract document. The Contract Manufacturing Group tracks and updates all costing information so that planners have current costs when issuing purchase orders to subcontractors.
Chemco: All relationships with subcontractors are handled by the one buyer with assistance from the Formulation Group and Supply Managers when necessary. Identifying and qualifying new subcontractors is also included. The buyer works with Legal to complete contract documents. Any potential problems with subcontractor due to lack of materials and/or packaging or delays in production are handled by buyer with assistance from Supply Planners.
Please note that all production is subcontracted. Neither company owns any factories.
•This week’s assignment is to prepare a 2-page paper analyzing the key players in the production planning role. Do you agree with either one of the scenarios above, a combination of both, or a completely different approach?
1. Are the most knowlegable individuals involved in the process?
2. Do you feel that the process is over or under staffed?
3. Is there a need to bring in outside consultants?
4. How does the fact that production is outsourced affect production planning?
5. How are unforecasted upsides in production handled with subcontractors?
6. Highlight the importance of supplier relationships when subcontracting.
• Research an article on an outside company who subcontracts production and explain their organizational roles and responsibilities. Make sure to use an article from your own research that has not already been shared in the course.
• Write 2-3 page paper highlighting questions above along with an article describing the successes of a particular company’s outsourced production planning.
Requirements • Your paper should be at least 2 pages in length not including the reference page.
• Follow APA Guidelines per the Guidelines