Delta Rice Mill

Topics: Year Three, Want, Time Pages: 4 (749 words) Published: June 1, 2014

Delta rice mill case study

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identify problems in operations

Delta rice mill case study

identify problems in operations
Looking at the operational system at Delta Rice Mill Operations, there are obviously some problems existing there. Firstly, they are having problem in their equipment of production. As it is mentioned in the case study, the Delta Factory was acquired in 1976, it is a long period of time and slowing down in capacity is an unavoidable thing. The old and unreliable equipment would lead to the breakdown in production frequently. Moreover, the old system would cost the company high in maintaining. Hence, the old and unreliable equipment lead to inability of meeting the demand, it therefore lead to overtime production issue. A solution for equipment problem is inevitable. In order to improve the performance of Delta factory, there are some options that should be considered. It is clearly that there are many overtime works which cost 50% more comparing to the regular time paying. Looking at the data of sales of the past three years, we see that the total sales of rice products have been increasing by 3% from year 1 to year 2, and 7% from year 2 to year 3. This is the reason that explain why the productivity needs overtime working since the six months of the last year they worked overtime to meet the schedule. Thus, it is estimated that the demand will increase year by year. Moreover, the capacity is overwhelm to serve the demand in the market. In the other hand, the infrastructure is up to date so the productivity is not so good in to compatibility with other factors. For more detail, we also have a bottle neck in the packing line for the performance by 90 cases per hours in work. For the issues in this case, we found out four main problems. First off all, like I we mentioned above, the Delta Rice Mill’s infrastructure is up to date and it also reduces and make negative effects to total production system via its...
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