First for Forensics

Executive summary First for Forensics (FfF) is a high tech company operating in the forensic science market. The undisputed success that the company has had in the last decade, is now challenged by the entrance of a competitor able to provide low cost versions of the two main First for Forensics products: F1 Basic and F1 Total. The lack of competiveness is due to unsatisfactory delivery performance as a consequence of the long finished goods holding period in the warehouse. The MPC system currently employed is the MRP system based on monthly forecast. Despite the two main products present a high level of commonality the complexity is raised by a large range of specified options offered to customers. In order to reinforce the ability to compete the company needs to rethink and reset the manufacturing operations that are currently facing several issues. The main aims of this report are to investigate how potential improvements could be brought to the company, with particular regard to increase consumer service levels, decrease overall lead time and reduce operating cost. Background considerations This report focuses on the MPC system employed and on what can be done to improve its performance. As mentioned above, the method currently used is the MRP that can be defined as “an approach to calculating how many parts or materials of particular types are require and what time they are required” [1]. It is, basically, a push system in which materials flow is made in anticipation of future demand. [2]. This system presents some operational issues that deserve to be briefly treated. It assumes that lead-time never varies, costs are always constant and lot sizes are optimal [3]. Moreover, being mainly based on forecast demand, susceptible to errors, it requires a greater inventory level than possible alternative systems [4]. High level of inventories are undesirable for several reasons, such us they adsorb working capital, they increase overhead costs and if not sold quickly...