Analysis of the Procedures Associated with the Decision to Sub-Contract Work

Abstract

Press work is subcontracted when the domestic manufacturing facilities are insufficient to meet the demand. Planned subcontracting of press work occurs at peak demand periods, but in addition unplanned subcontracting of press work frequently occurs during :peak and non-peak periods. The project can be split up into two distinct phases. PHASE 1 - was concerned with identifying and analysing the major difficulties associated with the five week rota cycle system operating on the Large Press Section (selected as a pilot area) that gave rise to unplanned subcontracting measures. Methods to overcome the difficulties associated with the system were proposed and uccessfully implemented. A model to allocate press work between the company and subcontractors when the domestic capacity was exceeded is described in Chapter 7. The model minimises the sum of the domestic manufacturing cost and the total subcontracting cost and also smooths the domestic weekly loads across the cycle. PHASE II - was concerned with the study of more economical manufacturing rota cycles than the five week rota cycle, based on economic batch quantities and tailored to a geometric series, A study of the component storage levels required in rota cycle manufacture was made prior to the implementation of the multi-rota cycles.