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Sky View Airplane Company Simulation

The document provides an overview of the Sky View Airplane Company and its operations, including its current output of 10 airplanes per day and the need to increase production to meet a new contract requiring 24 airplanes per day. It explains the use of a Materials Requirements Planning (MRP) system to manage raw material and manpower needs for production. The company is structured in departments and has a history of delivery challenges, but is eager to embrace the opportunity presented by the new contract.

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0% found this document useful (0 votes)
4 views5 pages

Sky View Airplane Company Simulation

The document provides an overview of the Sky View Airplane Company and its operations, including its current output of 10 airplanes per day and the need to increase production to meet a new contract requiring 24 airplanes per day. It explains the use of a Materials Requirements Planning (MRP) system to manage raw material and manpower needs for production. The company is structured in departments and has a history of delivery challenges, but is eager to embrace the opportunity presented by the new contract.

Uploaded by

asad
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Module 02- Section 06 - Sky View Information Sheet

Let’s switch now from the Mock Company case study to the Sky View Airplane Company Lego
Simulation. Here we can see the theory put into practice.

We begin by giving some of the background of the Sky View Company. This will help you
understand the steps that will follow as you observe the steps that will follow during our simulation
exercise.

This is a sample of the high quality airplanes they build.

That means that in negotiating this contract, they will need to work on deliveries and to increase their
production.

Course notes, Lean 101, Module 2 Section 6


[Link]
For those who are unfamiliar with the term MRP system, it stands for Materials Requirements Planning
System. Basically, what a company does is take their sales forecasts and put them into a computer
program. This program then calculates for them, that is from a planning point of view.
What the raw material requirements are, what the manpower are, and what the capacity requirements
are. This type of information is then used to schedule the facility.

10 Airplanes per day is the current output. They will have to increase this number to meet the new
customer’s demand.

Course notes, Lean 101, Module 2 Section 6


[Link]
In our simulation, the critical components of the Aircraft are Lego Pieces which are stored in Raw
Materials Bins and placed somewhere inside the plant.

Course notes, Lean 101, Module 2 Section 6


[Link]
Let’s do a quick review of the Sky View Airplane company information.

Course notes, Lean 101, Module 2 Section 6


[Link]
Skyview Airplane Company has a traditional set up. It is setup in departments. It has the fuselage
department, wing department, tail department and an options department (just in case the customer
wants landing gear). Skyview produces a high quality product. It has large inventories; they have a
history of not being able to deliver on time. Currently the company is trying to deliver 10 airplanes per
day consistently. This has been a challenge. Skyview Airplane Company is currently negotiating a large
contract which requires that we guarantee a delivery of 24 airplanes per day. The president of the
company is asking his direct reports if they would help him guarantee 24 Airplanes per day. So let’s take
a look at that challenge.

This is an exciting new opportunity for Skyview Airplanes Company and they are eager to meet the
challenge head on, I hope you enjoy the rest of our simulation and know that this is a key to seeing Lean
Manufacturing in action.

Course notes, Lean 101, Module 2 Section 6


[Link]

Common questions

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Sky View Airplane Company struggles with effective delivery systems due to large inventories and a history of not delivering on time . This inefficiency directly affects their ability to meet new contract demands, such as guaranteeing 24 airplanes per day, as current output is only 10 airplanes per day. Without improvements in production planning and inventory management, meeting the new demand will be challenging .

In the Sky View Airplane Company's production simulation, raw material bins, represented by Lego pieces, are crucial for storing components necessary for airplane construction . Effective management of these bins can greatly impact productivity by ensuring that all required materials are readily available, which reduces downtime and streamlines the production process. Inadequate management can lead to delays and fail to meet output goals like 24 airplanes per day .

Securing a new contract likely forces Sky View Airplane Company to revamp their operational strategy, emphasizing scalability and flexibility to meet the stipulated 24 airplanes a day . They need to adjust their practices by enhancing their materials requirements planning, improving inventory management, and possibly reorganizing their departmental setup to support more integrated workflows. Lean manufacturing principles should be adopted to minimize waste and optimize processes, all of which are critical for fulfilling contract objectives and aligning production capacity with increased demand .

Implementing a Materials Requirements Planning (MRP) system can help Sky View Airplane Company by allowing them to effectively calculate the necessary raw materials, manpower, and capacity requirements based on sales forecasts . This can lead to better scheduling of their facilities, reducing inventory levels, and improving on-time deliveries, which are critical for meeting new customer demands .

The high quality of airplanes produced by Sky View enhances their competitiveness and customer satisfaction, as it positions them as a reliable provider of premium products . However, the current delivery challenges, such as consistently delayed deliveries, undermine these benefits. As quality production enhances reputation, failure to deliver on time may negate this advantage, leading to customer dissatisfaction .

Transitioning to a Lean Manufacturing system could benefit Sky View by streamlining processes, reducing waste, and increasing efficiency, ultimately helping meet the increased production demand. However, challenges include changing current departmental synergies, retraining staff, altering inventory management, and modifying production lines to reduce lead times and meet the 24 airplanes per day target . There may also be resistance to change from employees used to the traditional setup .

Sky View Airplane Company’s current production challenges, such as inventory inefficiencies and meeting higher output demands, can serve as a catalyst for initiating continuous improvement programs. By analyzing bottlenecks and inefficiencies exposed under pressure to produce 24 airplanes per day, the company can implement lean tools like root cause analysis, value stream mapping, and just-in-time production to refine their processes . Structuring these improvements within a formal continuous improvement framework will help avert similar challenges in the future and enhance overall process resilience .

The traditional departmental setup at Sky View, with defined divisions such as fuselage and wing departments, may hinder their ability to increase production because it can lead to silos, complicating communication and coordination needed for lean practices . However, this structure could facilitate specialization and expertise within departments, potentially benefiting specific stages of production. The setup might hinder lean practices if it prevents a smooth workflow across departments, which is crucial for achieving the desired production increase .

The Lego simulation for Sky View Airplane Company offers educational benefits by providing a tangible and hands-on approach to understanding lean manufacturing concepts. It allows participants to visualize and practically apply lean principles such as process improvement, waste reduction, and workflow optimization in a controlled, low-stakes environment . This experiential learning approach reinforces theoretical knowledge and highlights the importance of efficient resource management .

Meeting the goal of producing 24 airplanes per day is critical for Sky View Airplane Company as it aligns with securing a large contract, which is vital for their corporate growth and competitive position in the market . Achieving this production target not only fulfills contractual obligations but also demonstrates their ability to scale operations effectively, enhancing future business opportunities and fostering trust with potential clients .

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