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Little Field Report 1

The report summarizes Indoconsultants' management of machines and job capacity at Littlefield Laboratories. Indoconsultants observed job arrivals and machine capacities daily rather than relying on predictions. When machine utilization reached 100%, Indoconsultants purchased additional machines, buying a second machine 1 on day 53 and a third on day 91 as demand increased. Around day 120 jobs peaked but more machines were not purchased as demand was expected to decrease. Indoconsultants also decided against selling machines due to continued increasing demand.

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383 views2 pages

Little Field Report 1

The report summarizes Indoconsultants' management of machines and job capacity at Littlefield Laboratories. Indoconsultants observed job arrivals and machine capacities daily rather than relying on predictions. When machine utilization reached 100%, Indoconsultants purchased additional machines, buying a second machine 1 on day 53 and a third on day 91 as demand increased. Around day 120 jobs peaked but more machines were not purchased as demand was expected to decrease. Indoconsultants also decided against selling machines due to continued increasing demand.

Uploaded by

Alibaba Lalala
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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REPORT OF LITTLEFIELD LABORATORIES Running the Littlefield laboratories required observation and prediction on upcoming job arrivals to determine

if any machines should be purchased to complete the number of jobs. However, Indoconsultants did not rely on any technical calculation to measure the predicted job arrivals. On other hand, Indoconsultants focused their observation on capacity of each machines. Observing the number of jobs arriving each day, Indoconsultants then translates the need of machine based on eachs requirements. With only 1 machine 1, Littlefiled can only accomplish up to 4-5 jobs a day. Indoconsultants did not want to take unnecessary risk. Rather than forecasting, Indoconsultants acted based on the actual figures. Once the number of jobs had exceed the capacity of the machine, Indoconsultants bought the machine required to comply the needs of the jobs. However, above strategy had limitations. As Indoconsultants decided to purchase the machine once the number of jobs have exceed the capacity of the machines, that means Littlefield lose revenue due to its inability to complete the jobs. With forecasting, however, once it was predicted that the number of jobs had increased, Littlefield may be prepared by purchasing additional required machines to overcome excess of job arrivals. Indoconsultans, as mentioned above, wanted to avoid the risk of purchasing such expensive machinery to cope up with future expectations that might not be true. Machine 1 Machine 2 Machine 3 Preparer Tester Centrifuge 5.3 hours 1.9 hours 1.8 hours 3 1 1 13.6 job/day 12.63 job/day 13.33 job/day

Indoconsultants bought 2 of machine 1 on day 53 and day 91. Indoconsultants analyzed the utilization rate of machine 1, which had reached 100% constantly. Any other machines had utilization rate below 100% by day 53. Therefore, additional machine 1 was purchased. Due to increasing trend of job arrivals, on day 91, Indoconsultants purchased another machine 1. Until then, the utilization rate of each machines was

constantly high, ranging from 0.8-1. Around day 120, the arrival job rate was really high, however, Indoconsultants decided not to purchase another machine because it was predicted that the job arrivals will decrease towards the end. Indoconsultants decided not to sell any machinery because of the increasing demand. The number of jobs arrival increased at maximum range of 15-18, and with the current machinery, Littlefield machinery can fulfilled up to 12 jobs/day. Buying more machines will have more costs than revenue, because the maximum jobs/day reaches only around 18. However, Indoconsultants should sell one of machine 1 because the number of jobs received daily was decreasing. Selling even up to 2 machine 1 will not create that much of a problem, because on the last 50 days, the number of jobs received daily was declining from maximum of 6 to 0. Indoconsultants should be able to obtain another $20.000 from selling the machine.

Presented by Indo Consultants Members: Amanda Kosasih Kevin Marcing Tania Gunawan

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