All students will use this week’s case study for this discussion thread. Each student is to start their discussion by addressing what needs to be done in order to meet the forecasted volumes for the 2014-2019 period.
In addition, each student is to respond to at least two other students’ discussion threads by listing at least two viable recommendations that will solve the capacity issues identified as well as furthering the discussion or presenting an alternative view.
Ranger Creek Brewing is in its growth stage and has achieved steady success in its three years. The three friends T.J Miller, Mark McDavid, and Dennis Rylander, share their passion for breweries and have a great dynamic. T.J. Miller manages operations is looking ahead to finding potential operational scenarios in the business that he wants to present to his partners (Colazo, 2018). Like every business in their growth stage, they are experiencing growing pains. The team is considering increasing capacity with new equipment, especially with the regulations in Texas opening up business they are anticipating higher demand. To predict the forecasted volumes for the 2014-2019 period, the team would best be served to analyze the company from process flow and mapping, plant layout, employee job design, and marketing (Heizer et al., 2019). Additionally, the analysis will help them manage the forecast of the potential business coming their way due to new state regulations and help to determine if purchasing additional equipment will serve their business positively. With the popularity of microbreweries, they can grow and are taking steps to ensure sustainability and success.
Colazo, J. (2018). Ranger Creek Brewing and Distilling. IVEY Publishing, W14673.
Heizer, J., Render, B., & Munson, C. (2019). Operations Management: Sustainability and Supply Chain Management (13th ed.). Pearso
The company works 8 hours a day and 365 days which brings it to= 8hr/day * 365day =2920Hr
The total time that takes to produce 930-gallon batch beer is 22.52hours
So to produce 1 gallon it takes: (1gallon*22.52hr/930gallon)= 0.02 hours flow rate per gallon beer
And if the company sold 3500 barrels in 2013 = 123953.41 gallons of beer a year
123953.41gallons will take 2479.07 hours but the company operates only 2920 hours a year.
It could be seen that the flow rate for the beer brewing process equals 0.02 hours. It means that the company requires 0.02 hours to produce 1 gallon of beer. The flow rate per gallon is highly low which shows that the company is inefficient in managing its operations.
The total time that takes to produce 100 cases per batch of whisky is 41 hours
So to produce 1 case it takes: (1 case*1hr/100cases)= 0.41 hours flow rate per case
I would recommend expanding the plant and add the new filter that will cost $8000 but it will reduce the flow rate and enhance time efficiency.