Appendix A- Case Parachute INC.
1. Diagram of the production process
2. What are the type of process and the most likely type of layout that PRACHUTE INC. has in the current production process?
As Parachute Inc. is offering major process lines producing two products, one known as RecreJump and the other named ProJump. In the following I will distinguish between these products. RecreJump is representing the type of Line process as its creating a low variety, such as 5 models of parachutes, in large amounts. Due to that work processes are arranged according to the dynamic steps by which the parachute is made. The most likely type of layout for this production line refers to the product layout. Focusing on grouped production steps during the process as the different parachutes run through several manufacturing activities. In contrast, ProJump is representing the type of job-shop process during its production. As ProJump is focused on customization by having close contact to the consumer by designing the parachutes together in a group. Designing unique, but similar products in a smaller and more specialized volume. Therefore a group of expertise workers is needed for producing high quality parachutes, which represents the type of a functional lay-out.
3. Please identify the Costumer Order Decoupling Point (COPD). Give at least 2 reasons for the choice of each COPD.
RecreJump has retailers to launch the products. RecreJump has a predictable production process as the parachutes are created by depending on the season. Due to that RecreJump could not easily run out of stock as forecasting is an important task. It is essential to balance the amount of inventory against the degree of customer service. Therefore the COPD is to make-to-stock by serving customers from finished goods inventory. ProJump has a purchasing department to design the parachutes with direct