Operations Management
Earth Buddy Case
Story:
Anton Rabie and Ronnen Hararay are the co-owners of the company Earth
Buddy. The product is a human face that when doused in water and then put in a warm
sunny place will produce grass for hair, very similar to the popular chia pet of the
2010’s. The Co–owners have an issue with not being able to “afford large inventories
while remaining flexible.” The company’s production director is attempting to increase
his capacity without taking on more inventory. The product is primarily sold in Canada
but exports have now started in the states and are growing. The production process is
somewhat streamlined and the product manager currently believes that he can count on
7 hours of production for each shift. One of the issues that the company is combating is
the fact that on humid summer days, drying of the product can take up to more than 2
hours longer than usual. Another issue is that the Moulding process is creating a bottle
neck that is decreasing total production. To increase capacity and production these
issues needs to be resolved for the company to become more effective and increase
overall output.
Calculate Capacity:
