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Comment by Zain Khan on May 23, 2018 at 6:47pm

Scenario:

Louis Vuitton is among the world’s largest luxury goods manufacturing companies. LV makes upscale hand bags which sells on a handsome markup providing excellent return on investment. But management feels there is still room for improvement. When a product becomes a hit in the market, LV’s production fails to keep pace with sales. Whereas in high fashion industry it is all about speed to market. LV wants to reduce this gap by improving their production system.

LV was using traditional batch production system where craftsmen worked on partially completed handbags performing different tasks such as cutting, sewing, gluing and assembly. Carts were used to move batches of semi-finished handbags on to the next workstation. This whole process took 8 days for a group of 20 to 30 workers to complete a single handbag and the defects rate was high. A massive overhaul was needed.

LV retrained workers to do multiple tasks in a small U-shaped work cells. Each work cell contained 6 to 12 cross trained workers. They shifted from batch to one-piece flow, work passed through the cell from worker to worker. This system allowed them to reduce inventory and find defects early. As a result returns were down by two thirds. This system increased productivity and quality with the ability to respond to the market with daily scheduling instead of weekly scheduling.

Question:-

1. In this scenario solution of the problems faced by LV is given, what you need to do is discuss the importance of cross training and product movement in production system (while remaining in the limits of given scenario)? 5 Marks
2. How cross training and one-piece flow lead to reduced inventory and early defects detection? 5 Marks

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Comment by Imran Zafar on May 11, 2017 at 3:25am

Comment by Sultan Azizi on May 4, 2017 at 12:17pm

Discussion about quiz # 1 due date 05/05/2017. upload your quiz experience.

Comment by Sultan Azizi on May 4, 2017 at 11:42am

Discussion about quiz # 1 due date 05/05/2017. upload your quiz experience.

Comment by Imran Zafar on April 24, 2017 at 1:15pm

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