Case study Example | Topics and Well Written Essays - 1000 words - 17

Case Study Example Labor standards cost is another bottleneck as it is high. Maintenance of the machinery requires people to do the work. These people consume funds that drain the company (Truckseat Case Study, 3). The production line is a bottleneck in the sense that the cost of raw materials has increased by double digits. This impacts negatively on the company has the company is forced to pay more for materials that previously cost less. At the same time the quality of products produced are below the customer expectations. When customer expectations about the product are lowered, loyalty becomes elusive (Truckseat Case Study, 3). The bottlenecks drain the company immensely. The reason for bottlenecks is because when the company does not make maximum gains from the products while spending as much to settle labor cost, maintenance of machines not to mention the quality of the products. Bottlenecks are eminent in the delivery section as well. Case in point is that there is no clear determination as to when products should be made and availed to the customers. Consequently, there is a disconnect in the sense that there is no proper market survey to establish demand and supply chain. So in essence, what happens is that sometimes products are sometimes manufactured and not delivered for the simple reason that there is no ready market to have the goods. Another bottleneck arises when the customers are in need of the products but the production levels are low. This happens due to poor forecasting of the market to determine market needs and wants. The level of customer satisfaction is below average in the sense that the quality is not up to the standards expected by the clients. The qualitative analysis figures are in the appendices. 2. Stocks can be an effective lever to remove the bottleneck: select where (along the production flow) to position the decoupling  point: Compare different feasible alternatives of decoupling