Submitted By

Sadan arshi(54) Moazzam hussain(37) Noman siddiqui (44) Adil siddiqui(4) Nazim hashmi(49) Niyaz aslam( 38) Hamza shahid( 20) Mustapha rahmatillahi(46) Fazeh

Martin Trailers produced trailers and was experiencing rapid growth. The trailers it produced had a seasonal sales pattern. The management and operations of materials was done by reviewing previous years planning process, production outputs, inventory level and costs. Based on this information, Martin was trying to assess how best to plan for the growth predicted for the coming year.

Marketing: This was done by making a one year sales forecast in November
for the private trailers sold under the names of private departmental stores. Martin dealer estimated the number of trailers required at the trailer show held in early February. This schedule was then given to the production manager.

Materials Management: The purchasing agent made purchases

with the help of the forecast made by Martin. Immediate supply of the order was required from the suppliers. Materials used for each trailer accounted for two-thirds of Martins manufacturing costs. Labor and overhead accounted for 13 and 20 percent respectively. Martin had hired a clerk to maintain the inventory level of raw materials who entered the amount of inventories as and when shipments arrived. Purchasing agent mainly relied on the production manager for determining the number of parts left.

Manufacturing: It produced camping trailers from December until June

and Snowmobile trailers from July till November. Parts were usually manufactured for the trailers that were assembled in the following week. If parts were not yet made for the most urgently required trailers then another model of trailer was chosen whose parts were made. These priorities were determined by the importance of the customer. The tentative schedule which was reduced to only one week ahead in the month of May and June was often upset by late demands from dealers. The shortage of parts created problems in the scheduling of production.

ISSUES: Capacity analysis, material requirement planning, material

management and purchasing

RECOMMENDATION: Our recommendation this company has to bring a change in material requirement planning , that martin trailers optimize the robustness of their processes using a systems failure analysis process focused on rapid cause identification and corrective action implementation. We believe manufacturers have to understand their productivity and act on areas not meeting standard. Manufacturers should understand the procurement process and its associated internal lead times, and monitor

the procurement organizations performance to assure supplier commitments and deliveries that support MRP need dates.