THE PERFORMANCE PROBLEM!

A well-established business is having performance problems; atleast as far as management is concerned. This particular locationhas the slowest total processing time measured from when thereceipt is processed until the shipment is released for delivery tothe customer. You’ve been tasked with “speeding up” the orderprocessing system.

There are 12 distinct operations involved in processing andshipping orders. Some can be performed at the same time as others,whereas others have to be performed in sequence- meaning, once cannot take place before the other is completed.

You job (based on the information provided below) and(remembering the lecture notes that accompanied this assignment) isto analyze the order-processing and shipping operations. Review thesupplied data below and then answer the questions.

**Note – When reviewing the chart you will notice thatPRECEDENCE (P) RELATIONSHIPS has a ** beside it, the explanationfor this area is as follows:

(Tasks on the right of the < cannot begin untiltasks on the left are completed)

Task               Description                      Duration (indays)         PRelationships**

A        Order received / Entered insystem               0.25                            A < D

B        Decision, Fill from Warehouse OR

           Direct ship fromfactory                                0.50                            B < C

C        Print pick ticket /order                                  0.30                            C < H

D        Verify customercredit                                   0.35                            D < G,E

E        Check / determine buyerdiscounts                0.15                            E < F

F         Prepare invoice, enter in accts.receivable      1.00                            F < K

G        Decision – mode of shipment andcarrier      1.65                            G < J

H        Pick order atwarehouse                                 0.75                            H < I

I          Pack and labelshipment                                1.20                            I < L

J         Notify carrier, prepare shipping documents   2.25                            J < L

K        Transmit copy of invoice to shipping dock    1.20                            K < L

L        Transport order tocustomer                           3.50                                

Arrange the tasks as shown above into cycle paths. HINT thereare 3 path possibilities

Identify the critical path?

Which path is the quickest to complete?

Considering your answers to questions 1 and 2 which path offersthe best opportunities for reducing the order/ship processingcycle? Why?

Since speed to the customer is the issue, should you sourcefaster transportation or look at the identified paths forimprovements?

Realizing the chart doesn’t tell you how many workers areassigned to each task; are there any tasks that could be identifiedfor reducing the number of employees assigned to them and if sowhere would you reassign them to?