Gadget Toys Case Write-Up
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Gadget Toy Company is faced with a choice between two options to reduce project time for their new toy line. Gadget must cut down project time in order to meet their Christmas deadline that is 19 weeks away. Analysis shows that there are two critical paths for the current process, which is 20 weeks long and includes the following critical activities: obtain funding approval (A), finalize engineering (B), build dies/tools (D), raw material delivery (K), initial production run (L), ship product (M), train workers (F), and de-bug process (G). See figure below. Gadget’s first option is to reduce the amount of product advertising. Although this might reduce cost, advertising (J) is not a critical activity and won’t reduce the total project time. Beyond that, cutting six weeks of advertising – the maximum amount – will result in an estimated 30% decrease in sales. This is hardly worth the lower costs for a new product launch, and advertising is necessary if Gadget wants the children’s toy line to be popular beyond the Christmas season. Gadget’s second option is to ask the production manager to work weekends for faster tool building (D). Although this would cost the company $5000, Gadget Toy Co. should accept the offer. Tool building is a critical activity and the bottleneck in the process flow. The next longest path in the process flow is 16 weeks, resulting in a slack time of four weeks. By accepting the offer from the tool builder the critical paths can be reduced to 18 weeks and the product can be launched within the 19-week deadline. Process Paths Before Decision:
AHJM = 1 + 1 + 12 + 1 = 15 weeks
AHIKLM = 1 + 1 + 2 + 2 + 3 + 1 = 10 weeks
ABDKLM = 1 + 1 + 12 + 2 + 3 + 1 = 20 weeks (critical path)
ABDFGLM = 1 + 1 + 12 + 1 + 1 + 3 + 1 = 20 weeks (critical path) ACEFGLM = 1 + 8 + 1 + 1 + 1 + 3 + 1 = 16 weeks
Process Paths Before Decision:
AHJM = 1 + 1 + 12 + 1 = 15 weeks
AHIKLM = 1 + 1 + 2 + 2 + 3 + 1 = 10 weeks
ABDKLM = 1 + 1 + 12 + 2 + 3 + 1 = 20 weeks (critical path)
ABDFGLM = 1 + 1 + 12 + 1 + 1 + 3 + 1 = 20 weeks (critical path) ACEFGLM = 1 + 8 + 1 + 1 + 1 + 3 + 1 = 16 weeks
Gadget Flow Chart
Total Time to Delivery
18 WEEKS
Total Time to Delivery
18 WEEKS
Raw Material Delivery (K)
2 WEEKS
Raw Material Delivery (K)
2 WEEKS
Train Workers (F)
1 WEEK
Train Workers (F)
1 WEEK
De-Bug Process (G)
1 WEEK
De-Bug Process (G)
1 WEEK
Initial Production Run (L)
3 WEEKS
Initial Production Run (L)
3 WEEKS
Ship Product (M)
1 WEEK
Ship Product (M)
1 WEEK
Finalize Packaging and Artwork (I)
2 WEEKS
Finalize Packaging and Artwork (I)
2 WEEKS
Advertise (J)
12 WEEKS
Advertise (J)
12 WEEKS
Install Equipment (E)
1 WEEK
Install Equipment (E)
1 WEEK
Build Dies/Tools
10 WEEKS (D)
BOTTLENECK
Build Dies/Tools
10 WEEKS (D)
BOTTLENECK
Establish Advertising Plan
1 WEEK (H)
Establish Advertising Plan
1 WEEK (H)
Finalize Engineering (B)
1 WEEK
Finalize Engineering (B)
1 WEEK
Deliver New Equipment (C)
8 WEEKs
Deliver New Equipment (C)
8 WEEKs
Obtain Funding
Approval (A)
1 WEEK
Obtain Funding
Approval (A)
1 WEEK
After Decision