Bmx Cycle Solutions

Question 1 What business is LCI in? What are the key success factors? How operations can contri savee? LCI BUSINESS LCI was founded in 1994 by Mr. fop Ubaidullah, a Former Chairman of Pakistan Cycle Cooperative Society Limited. LCI is located at Ferozpur Road, eighteen miles south-central of Lahore Pakistan. LCI marketed its bicycles under the brand name of Leader bicycles. LCI was in bad avatar and financi all in ally bankrupt , all give aways run by one supervisors , its occupation was practically zero when Managing director at Descon Mr.Razaq Dawood acquired LCI in June 1999. He hired new 6 engineers since 1999 in following departments analogous production planning, production scheduling, inventory swear and quality ascendence to set up all the necessary systems and procedures in order to turn LCI around. In May 2002 Five bicycles manufacturing companies (competitors) existed in market, combined capacity of these companies producing bicycles were 580,000bicyles per annum , and all were running at or climb capacity, the competition was very tough.Up to May 2002. LCI was producing 60,000 bicycles/annum, in May 2002, LCI started producing manufacturing its new product named BMX cycles, for betterment in this new product, after a year-long negotiation with Hercules of England, Decscon acquired from them the manufacturing and technology right, in Pakistan, for the very popular BMX cycle, Hercules overly concur to send engineers to Lahore for ten-week periods in order to help in set up the plant, tooling and train the staff.KEY achievement FACTORS * Senior Management of LCI wanted to introduce the BMX Cycle in market before competitors, and Mr. Mansoor Waraich, Senior planning Engineer, had a lot of pressure by the top management of LCI to consummate this huge production of BMX Cycles. That commodious production was carefully planned and all the shapees where closely monitored and upgraded. * Mr.Razaq Dawood, Managing Director, of Descon, took ove r the LCI in very bad shape , and he set up all necessary systems and procedures like production planning, production scheduling, inventory control and quality control in order to turn LCI around , it is also a factor of the success of LCI * Another key success factor was that Descon called Hercules of England engineers to train LCIs staff. LCIs staff can also go to England for the same training for a specific period. OPERATIONS CONTRIBUTIONLCI is a end product caller so operations plays very important role. Outsourcing and subcontracting of different piercing materials is done for the better result of operations. exclusively the plants structure was designed in a way so that they can minimize the wastage and can maximize the production. Manpower was also assigned according to their expertise and labor was hired on daily net income system. Question 2 What is your Analysis of the BMX production process? How would you characterize this process? ANALYSIS OF BMX PRODUCTION parade BMX production process is almost in sequence, all processes depends on each other, if one process is skipped therefore they cannot complete other part of cycle, in other wards they cannot ignore only a single process, As LCI wanted to introduce BMX in market before competitors and management wanted to provoke huge total of BMX cycles so LCI purchased different finished separate for BMX cycles from several suppliers, like, seats , pedals, handle bars, frame pads, and tires were directly purchased and installed , but other side , several move, like sheet metallic element, metal coils, steel bars and pipes were manufactured from raw materials acquired locally and abroad. Management hired permanent and daily paid labor in all shops to complete tasks efficiently and in clock timely, this planning was proved very helpful to complete huge production. First process is cutting shopThis shop having 3 utensils for cutting metal pipes into different lengths to use seduce rat bracket sh ell, frames and handle bar, this shop run under one supervisor and 4 full time employees Second process is Bottom bracket shell shop This Shop contained three 600 tons processes and 6 presses ranging from 60 to 100 tons, heavy parts of bicycle like BB shell were manufactured in this shop , this shop run under supervision of one supervisor and 4 full time employees. make do Shop BMX bicycle handles were manufactured at this shop completely, a specific machine automatically set the placed pipe in a few seconds into appropriate configuration and cut the handle bars to length and knurled. These Knurled to help retain the handle bar grip. BMX enameling and Phosphating ShopAll parts of bicycle were enameling and phasphating, phaspating discourse enabled the steel surface to retain the enameled paint for a long time and provide a permanent finish, all partes were placed on jigs and hang on a conveyer, this conveyer passed through a drying oven at a speed allowing each part to be baked at 1500C for approximately 50 minutes. sass Shop Bicycle Rims contained at this shop, One mm thick and 83 mm wide metal coils required to prepare rim and these rims imported from barazil or Japan, then front end coil was welded with sticker end coils and finally, the rims was bent into a required radius and cut after buffing and polishing. Press ShopA specific machine at press shop for grinding and buffing the parts of rims and two ends of strips had been welded together Saddle, bracken and Hub Shop Hubs and saddle for BMX cycle were assembled at this shop, loop clips of were manufactured at LCI , other parts like saddle frames and saddle covers were procured by vender and assembled manually at other end of same shop. instrument Shop Four production lathes like a grinding machine, a milling machine and quatern drilling machines are contained at this shop, some parts of BMX cycle check-nut, lock-nut and wheel valve produced in machine shop, this machine was operating 50% of its c apacity Electroplating ShopSome parts of BMX like Hub flanges, steel rims , lamp brackets, spanners and chain wheels plate at this shop, this machine have limited equipment capacity so double shift running sextet days per week for electroplating. BMX Welding line This shop have 5 welding stations and a mitering machine , different parts of cycle welded and metering machine give a smooth curve at the ends of tubes (pipes) once this machine was set then all tubes automatically mitered the tube. Final Assembly Area This study have 6 work stations, fitting machine and an assembly track conveyor, all manufactured parts of BMX cycle assemble on these 6 stations, finally all the assemblies and accessory packets were packed in a cardboard carton for delivery.Characteristics, All shops worked very efficiently and all work stations busy to prepare assigned parts on same time so its very helpful to produce huge production, management took decisions for daily paid and monthly paid employees, and paid them attractive salary. Question 3 Given the investment in BMX cycle manufacturing line, what is the payback period? Each bicycle Price = 2400 rough-cut permissiveness = 8. 3% Profit margin for each bicycle = 2400 x 8. 3% = 199. 2 Production Capacity = 60,000 Profit margin for 60,000 bicycles are = 199. 2 x 60000 = 11952000 Payback on gross margin = 2 Years & 2 Months Question 4 Assume the enameling plant capacity is 3000 bicycles per month, as senior planning Engineer, what alternatives are available to increase BMX cycle production?As per upper managements drive to expand operations, a ten year old enameling unit that was purchased for Rs 3 Million in 1999. In order to increase production LCI in addition to subcontracted enameling should start in house production in parallel by utilizing the unit purchased. It may have to invest on up-gradation of the unit as required to meet the current production standards. Company purchased enameling machine but they did not use it, because outsourcing and subcontracting was present in LCIs tradition so upper management should change it and its better to hold enameling machine, bring it in use, so BMX production will definitely be increased. Question 5 What is your tribute and why? Following are the Recommendations and the reasons LCI should do some forecasting for identifying the real need of their product in the market, * They should give advertisement though email, news paper and web TV add etc, * They should do bone analysis of their own company and their competitors. * They should improve their weaknesses, and they should produce bicycle for elders * They should hire some vender for parts of BMX so it is suggested that they should arrange of those machines at their company, its also saving the cost and time. * For sustaining the market position more innovation is required, the designs of bicycles should be upgraded and changed to attract the customers towards the product.