MRP at Wheeled Coach Ambulance

Discussion Topic 
Read the Case “MRP at Wheeled Coach Ambulance” – CH 14 and respond to the following:

• Discuss the reasons why accurate inventory is so critical at Wheeled Coach
• Does Wheeled Coach have excess inventory?  Why do you think this happens?
• Provide  specific recommendations for reducing inventory and how to implement them.

• You must post early enough to give your fellow students time to read your initial post and comment on it; then, you must respond to their comment(s) or question(s) regarding your point of view. This is a must!
• These are open discussion topics. Do not think of these topics as questions you must answer.  The forum is meant for you to express your learning and questions and conclusions you have.
• Do not go to some website and copy and paste. Use your learning this week to apply your analytical skills in order to further your learning.
• Your initial post should be about 800words.
• Formatting and style is APA.  Ensure that all external sources are properly cited within the text and is referenced appropriately at the end of the paper, including your course materials.

Show your understanding of the OM chapter concepts and the specific case situation
 
 
MRP at Wheeled Coach
Wheeled Coach, the world’s largest manufacturer of ambulances, builds thousands of different, constantly changing configurations of its products. The custom nature of its business means lots of options and special designs— and a potential scheduling and inventory nightmare. Wheeled Coach addressed such problems, and succeeded in solving a lot of them, with a material requirements planning (MRP) system. As with most MRP installations, however, solving one set of problems uncovers a new set. One of the new issues that had to be addressed by plant manager Lynn Whalen was newly discovered excess inventory. Managers discovered a substantial amount of inventory that was not called for in any finished products. Excess inventory was evident because of the new level of inventory accuracy required by the MRP system. The other reason was a new series of inventory reports generated by the IBM MAPICS MRP system purchased by Wheeled Coach. One of those reports indicates where items are used and is known as the “Where Used” report. Interestingly, many inventory items were not called out on bills of material (BOMs) for any current products. In some cases, the reason some parts were in the stockroom remained a mystery. The discovery of this excess inventory led to renewed efforts to ensure that the BOMs were accurate. With substantial work, BOM accuracy increased and the number of engineering change notices (ECNs) decreased. Similarly, purchase-order accuracy, with regard to both part numbers and quantities ordered, was improved. Additionally, receiving department and stockroom accuracy went up, all helping to maintain schedule, costs, and ultimately, shipping dates and quality. Eventually, Lynn Whalen concluded that the residual amounts of excess inventory were the result, at least in part, of rapid changes in ambulance design and technology. Another source was customer changes made after specifications had been determined and materials ordered. This latter excess occurs because, even though Wheeled Coach’s own throughput time is only seventeen days, many of the items that it purchases require much longer lead times.