Trans-European Plastics

In: Business and Management

Submitted By SandraVu
Words 501
Pages 3

Course: Operations Management (engl.) Lecturer: Prof. Dr. Peter Franke Presented by: Binh Vu 14.01.2015


I. Introduction to TEP
II. Current problems III.Situation analyses IV.Suggested solutions


A. About business
• One of Europe’s largest manufacturers of plastic household items.
• A range of over 500 products sold to wholesalers and large retailers throughout Europe.


B. About production
• Manufacturing operation: batch production with 24 large injection-moulding machines.
• Three seven-hour shifts per day, Monday to Friday: 105 hours per week, for 50 weeks per year.


C. About services
• Order delivery within 24 hours of receipt using an international carrier.

• All customers would expect to receive their requirements in full within one week.



• Declining delivery reliability

• Increased levels of finished goods inventory

• Falling productivity

1. Why is TEP unable to deliver all its products reliably within the target of one week?
Standard (non-overtime) production capacity: 105 1-machine hours per week
3 hours set-up time +


24 machines


2520 24-machine hours per week
23 hours to produce one batch

20 hours minimum run length


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≈ 110 batches per week ≈ 4.5 weeks!!


Total moulding time for the re-order quantity = 2748 hours


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