BIG Mattress Ltd.
By: Paolo Bruni
To: Ed Bumbacco
ADMN4606
November 28, 2017
Table of Contents
Table of Contents ………………………………………………………………………………………………………………………. 2
Mission ……………………………………………………………………………………………………………………………………… 3
Productivity ………………………………………………………………………………………………………………………………. 3
Forecasting………………………………………………………………………………………………………………………………… 3
Product Design ………………………………………………………………………………………………………………………….. 4
Capacity Planning ……………………………………………………………………………………………………………………… 5
Process Selection ……………………………………………………………………………………………………………………….. 5
Facilities Layout ………………………………………………………………………………………………………………………… 5
Work Systems ……………………………………………………………………………………………………………………………. 6
Location & Planning Analysis ……………………………………………………………………………………………………. 6
Quality Assurance ……………………………………………………………………………………………………………………… 7
Quality Control …………………………………………………………………………………………………………………………. 7
Total Quality Management (TQM) …………………………………………………………………………………………….. 8
Supply Chain Management ………………………………………………………………………………………………………… 8
Inventory Demand …………………………………………………………………………………………………………………….. 9
Aggregate Planning ………………………………………………………………………………………………………………….. 10
Material Requirement Planning ……………………………………………………………………………………………….. 10
Just In Time Systems (JIT) ………………………………………………………………………………………………………. 11
Conclusion ………………………………………………………………………………………………………………………………. 11
Mission
Our mission is to manufacture the best quality mattresses that exceed customer expectations in
comfort, durability and performance. We will manufacture our products with a competitive and fair price
in order to meet our customers needs and demands. We want to establish a positive reputation among our
competitors in the mattress industry.
At BIG Mattress Ltd. We will continually be an innovative and active company in the mattress
industry. We will ensure that we put in the minds of our customers is how their satisfaction from our
products is what gives us the ability to compete in the industry and drives our success. We care about our
employees too, we will ensure that they are provided with proper working conditions, benefits and a
comfortable work environment that brings good team morale and a great attitude. By having these in place
in our work environment, it will increase the likelihood that employees buy into what we are doing.
Productivity
Productivity is the measurement of how efficiently we use our resources. At BIG Mattress Ltd., we
will sue productivity as a leverage to determine how effective our processes are. From this leverage, we
can improve them over time to make production more effective and efficient. We do not want to waste
materials, labour, time and money during the production process. Production will be measured through
three ratios; 1. Labour Productivity: Units of Output/Number of Labour Hours, 2. Material Productivity:
Units of Output/Materials Used, 3. Machine Productivity: Units of Output/Machine Hours
To measure our total productivity, we will use the following ratio;
Total Productivity: Total Mattresses Produced/All Inputs
These ratios are used to monitor production and to make sure we are moving in the right direction.
We want to produce and sell a large quantity of high quality mattresses.
Forecasting
At BIG Mattresses Ltd. We will break down forecasting into short, medium and long term intervals.
In the short-term, we will forecast production and purchase schedules, shift schedules, mattress demand
and expected sales. In the medium-term, we will forecast labour requirements, resource requirements and
overall production planning. In the long-term we will forecast total sales, location, equipment, capacity
requirements and growth. Forecasts are broken down into these time horizons because we believe it will set
us up for success.
BIG Mattress Ltd. will use judgmental and quantitative methods for forecasting. In the judgmental
method, we will use sales force opinions because this will help us get into contact with those retailers that
are interested in our products and how they plan on selling our mattresses. We will also incorporate a
mathematical aspect to our forecasting using the associative model. More specifically, we will use “linear
regression”. The linear regression model fits a line through a set of points based on predicted and predictor
variables, and determines whether a relationship exists. By using both models together, it gives us a greater
opportunity for success and provides a more accurate calculation of data.
Product Design
BIG Mattress Ltd. will base their product design off of the needs and wants of retailers and
customers. For us to be able to compete and beat our competitors, we will invest in research and
development for our product. This will be the main source of design because it will allow the company to
be innovative and create a better opportunity for success in retail sales.
