We have every reason to be sure of making good profits especially because we have a lot of advantages in the production of these machines. First of all, this new technology is patented to Faster Fitness. Patents are an advantage to the company as they protect the technology of the firm from being copied or adopted by other companies.
A company that tries to use the technology without permission can be sued (Stim, 2007) under the United States law. This way, we are assured of market for as long as no superior technology overtakes us. The increasing market for home exercising machines in the United States is bound to provide the desired income given the unique capabilities of our machines which are specifically designed for home use.
Resources required for the manufacturing of the machines are also available and what needs to be done is to organize for their supplies. Presence of a good workforce is also of great importance to the company. Though not enough at the moment it will work well with the few additions in the painting and finishing.
There are challenges in that the production capacity is not adequate to meet the demand currently. The problem may not be solved until after a year due to the resources required upgrading the department. Inventory space is also very limited. The fact that staff needs training before the start of the project may delay production.
Other details in this paper include quality control strategy selection, long range forecasts and profit estimates. It analyzes the whole production process for the production of BF100 and BF200 while analyzing profitability and efficiency in production through creating a production schedule.
The production schedule helps in organizing the factors of production and ensures that the targets are met (Pinedo, 2005; McKay and Wier, 2004). Designing a production schedule is required in order to organize the production of the machines and also make sure that the customers needs are met. A production schedule according to Herrmann (2006) provides a guideline on the daily duties that should be performed so that no detail is left out in the process. It also guides the employees in the daily duties as it provides for time taken to do each chore.
Process and the production schedule.
The process involves about seven processes divided into three departments. The machines parts components and other resources will have to pass through the various departments before they can be made into the final product ready for delivery. Production of the machines therefore follows the sequence shown below.
The machine parts pass through the machining shop and welding shop for fabrication and welding. These two shops are in the machining and welding departments. They are then taken for finishing and painting before landing in the assembly, testing and packaging departments where they go through the final stage before reaching the consumer.
Production of BF100 requires at least eleven hours (a total of 660 minutes) completing while BF200 will take twenty four hours (1440 minutes) due to its complexity and the additional leg press sub assembly. Consider that 300 hours are available for both machining and welding, 450 hours for painting and finishing and 150 hours of Assembly, testing and packaging.
The schedule will be made to produce fifteen units of BF100 and fifteen units of BF200. Out of the three hundred hours available for machining and welding per month, BF100 will take up one twenty hours (120) while B200 will take up 180 hours. Given that there are twelve hours of overtime per week then we can produce four more BF200 machines to make it 19 machines since they are more valuable to the company.