Stickley Adhesives Case Study ✓ Solved

Stickley Adhesives I Case Study

Stickley Adhesives I Case Study involves analyzing capacity requirements for a newly designed service system that aids customers in utilizing Stickley's products. The applications service is crucial for advising customers on the best adhesive for specific needs, including technical specifications like cure time and holding pressure. Customers can rent or buy specialized equipment through this service. Currently, the system is decentralized, causing inconsistencies and complaints about its operation. A decision has been made to centralize the service to address these issues and improve efficiency.

The new centralized system will utilize advanced IT systems for effective communication and is expected to handle varying daily requests efficiently. A simulation developed earlier will observe process characteristics over a 30-day operation period. Cocoa, the operations analyst, is tasked with analyzing capacity requirements and determining the revenue model for this new system.

Paper For Above Instructions

Title: Analyzing Capacity Requirements for Stickley Adhesives' New Applications Service

Introduction

In an increasingly competitive marketplace, companies strive to enhance their efficiency and improve customer satisfaction. Stickley Adhesives, a subsidiary of Congisto A/S, has embarked on a significant project to centralize its applications service. This service provides essential insights to customers about product usage, ensuring they choose appropriate adhesives for diverse applications. Cocoa "Cocoa" Martinez, an operations analyst, is charged with analyzing the capacity requirements of this new centralized service system, which aims to not only streamline operations but also address the complaints arising from decentralized operations.

Overview of Stickley Adhesives

Stickley Adhesives has a long-standing history that dates back to the early 1900s. Initially focused on animal-based glue, the company has adapted over the years, shifting to synthetic adhesives. Currently, it boasts a workforce of 6,000, including 900 scientists and technicians dedicated to product innovation and customer support. The applications service, a critical component of Stickley’s customer offering, assists clients in determining the optimal adhesive for their specific requirements, including complex bonding scenarios that demand specialized knowledge.

Current Operations and Challenges

As it stands, the applications service operates on a decentralized model, where regional offices independently handle customer requests. This has led to inconsistencies in service quality, longer response times, and a rise in reapplications due to inadequate or incorrect guidance provided to customers. A Lean Six Sigma project highlighted these inefficiencies, emphasizing the necessity for a centralized approach that utilizes standard operational procedures and fosters collaboration among different regions.

Centralized Applications Service Design

The new centralized applications service is designed to leverage economies of scale and integrate advanced information technology solutions to streamline operations worldwide. It aims to provide a consistent and high-quality experience for customers regardless of their geographical location. With an expected average of 24 customer requests per day, ranging from 14 to 34, effective capacity planning is crucial to ensure the service meets demand without unnecessary delays.

In this centralized structure, the prioritization of customer requests will happen in Puerto Rico, where workers can typically prioritize 12 requests daily. Subsequently, scoping will occur at the Wichita headquarters, followed by experimenting at the Bangladesh facility and analysis at the U.S. headquarters. The final reporting will take place at a subsidiary in the Philippines, where workers complete an average of eight requests per day. This multi-location strategy aims to optimize each process's efficiency by utilizing localized strengths and cost advantages.

Capacity Analysis Using Simulation

Cocoa's task involves utilizing a Monte Carlo simulation developed to model the new system's operations over 30 days. By entering the number of workers assigned to each process and running iterations of the simulation, Cocoa can assess throughput variations and identify necessary adjustments to staffing and resource allocation. Each process has specific characteristics that will determine the overall capacity, including average completion rates per worker and labor costs, which need to align with the company’s budget and competitive pricing strategies.

Identifying bottlenecks in demand fulfillment, establishing appropriate staffing levels at each process stage, and fostering efficient communication between teams will be pivotal concerns for Cocoa’s analysis. The simulation also allows for scenario testing, whereby Cocoa can examine different staffing levels and assess their impact on throughput, cost efficiency, and service quality.

Conclusion

The success of the new centralized applications service hinges upon Cocoa's detailed capacity analysis and simulation. It is essential to align operational capabilities with customer demand while ensuring that the service maintains Stickley’s high-quality standards. This initiative promises to enhance customer satisfaction, improve operational efficiency, and solidify Stickley Adhesives’ reputation as a leader in the adhesive industry. By leveraging technology and expertise from different locations, the centralized service model represents a strategic step toward achieving organizational excellence.

References

  • Maleyeff, J. (2018). Service Process Capacity Planning in Applications Services. Journal of Operations Management.
  • Heizer, J., & Render, B. (2020). Operations Management. Pearson Education.
  • Slack, N., Chambers, S., & Johnston, R. (2010). Operations Management. Pearson Education.
  • Fitzsimmons, J. A., & Fitzsimmons, M. J. (2016). Service Management: Operations, Strategy, and Information Technology. McGraw-Hill Education.
  • Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Simon & Schuster.
  • Garvin, D. A. (1988). Managing Quality: The Strategic and Competitive Edge. Free Press.
  • Tjahjono, B., Pistari, H., & van der Meer, R. (2017). Lean and Six Sigma in Operations Management: A Systematic Review. Journal of Manufacturing Technology Management.
  • Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
  • Shingo, S. (1989). A Study of the Toyota Production System from an Industrial Engineering Viewpoint. Productivity Press.
  • Deming, W. E. (1986). Out of the Crisis. MIT Center for Advanced Educational Services.

Related Assignments