Warehouse Design and Management (BUSS1504) -Fall 2018 –CW1 -QPMarketing Research and Data Analysis
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Instructions to Student:

Standard Motor Products is reaping the benefits of introducing JIT cellular manufacturing to its
molding and finishing operations in Long Island City, NY. “We’re avoiding hundreds of
thousands of dollars a month in inventory costs overall for the five JIT’ cells’ that we’re
operating,” says Ray Donovan, manager of computer-integrated manufacturing at the firm. “That
savings goes right to our bottom line.” At the same time, work-in-process has been cut by 94
percent and floor space by 66 percent. Lead time has fallen from 20 days to 4 days for all
products manufactured in the cells. Standard knew it had to slim down on finished goods
inventory. But its reputation has been based on being able to fill 97 percent of all orders for all of
its many products. But to do that, it kept large inventories in finished goods, at great cost to the
company, in its 400,000 square-foot distribution center in Virginia. In its Long Island City plant,
Standard manufactured products in a 75-year-old, six-story building. Two miles away was a
200,000 square-foot warehouse. The company stored finished goods, components, and raw
materials there. Following the implementation of JIT, Standard eliminated the New York
warehouse. The company now makes and stores raw materials and components in the factory.

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Before JIT procedures were instituted, Standard’s molding facility was located in the factory’s
basement, while the assembly and packing operations were on the first floor. The molders would
mold caps and rotors. Some went directly to the assembly and packing departments, while others
were shipped to the warehouse. For those that went to the warehouse, the finisher would have to
order them back when needed. “The molders, and the finishers were not synchronized,” said
Donovan. The molder was manufacturing many different products. To avoid setting up a 300-ton
molding machine for an order of 300 parts, he would make 3,000 parts-as much as 10 months’
demand. This would then sit, unfinished, in the New York warehouse waiting to be assembled.
“What we wanted to do was work strictly to customer demand and only make what the customer
needs,” says Donovan. “We also wanted to integrate finishing and molding into one operation.
This would cut floor space and help reduce raw materials, work-in-process, and finished goods
inventories.” But to do this required radical changes in the company’s operations, from
configuration of the shop floor layout, to training and attitude changes for all levels of employees
and management.
“Not only did Standard use JIT, they implemented cellular manufacturing in the molding
department,” says Donovan. “Families of parts are produced and finished entirely in one,
dedicated ‘cell’ of machinery and people. A cell is so self-contained that it is really a factory
within a factory.”
Under the old system, on an average day, there would be 15,000 caps as work-in-process for this
family of products before the finisher could get to them. Today, it’s down to about 100 per cell.
On products manufactured within the JIT cells, finished goods inventories have been reduced
from two to three months to one month or less.
These inventory levels have been consistently maintained for more than 10 months. Vendors
now deliver raw materials weekly in small quantities instead of once every two months in large
shipments. If a machine goes down, maintenance fixes it in a matter of minutes or hours instead
of days. If the warehouse in Virginia actually has the desired inventory level of a product and
there is no customer demand, then that product will not be manufactured. Consequently, levels of
inventory at that location are now beginning to be reduced. Donovan believes any manufacturer
can benefit from at least considering if JIT would help his operation. “Take a good look at your
basic operation. See where the value added to a product really takes place,” he says. “Then cut
out the rest. That’s how you save money.
JIT proponents disagree with the buffer approach. They believe that the philosophy of using
inventories to overcome work stoppages or defects is a way of ignoring production problems. JIT
reduces inventories in order to recouple sequential work centers into cells, forcing workers to
solve problems, such as defects, as they arise. If a problem is not solved, it affects all workers,
causing a large amount of disruption. In a JIT, everyone strives to eliminate problems, maintain
production equipment, and increase quality to prevent a shutdown of operations.
Answer the following questions
1. Critically analyze the problems that existed in the strategy adopted by Standard Motor
Products.
2. JIT has helped the organization come out of the situation. Elaborate.
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3. What are the alternate soft wares and strategies that you would suggest for warehousing
in Virginia.

Plagiarism Policy: Plagiarized documents, in parts or whole, submitted by the students will be
rejected. However, if the plagiarism is found to be accidental the student may be advised to resubmit the work only once within one week from the date of rejection. A penalty of 25% of the
total marks on the specific coursework assessment component will be imposed on the re-submitted
work. If the re-submitted work is also found to be plagiarised the student will be awarded a zero
mark in the respective assessment.
If the work submitted is found to be intentionally plagiarized to gain an unfair advantage in any
form, such work will be automatically rejected and a mark of zero will be awarded.
If the student is found to consistently submit plagiarized work it will be dealt with seriously and
may warrant suspension for a period or expulsion as may be recommended by the committee set
for the purpose.
LATE SUBMISSIONS: Penalty for late submission – 5% of the maximum mark specified for the
assessment is to be deducted for each working day for a maximum of one week.
Note: Must follow assignments instructions.
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Clarification on Plagiarism Policy
As per MEC policy, any form of violation of academic integrity will invite severe penalty.
Plagiarised documents, in part or in whole, submitted by the students will be subject to this policy.
A. First offence of plagiarism
a. A student will be allowed to re-submit the assignment once, within a maximum period of one
week. However, a penalty of deduction of 25% of the marks obtained for the resubmitted work
will be imposed.
b. Mark deduction: When the work is resubmitted, the marking will be undertaken according to
the marking criteria. In compliance with this policy, the 25% deduction is then made on the marks
obtained. For example, in an assessment that carries a maximum of 50 marks, suppose a student
were to obtain 30 marks for the resubmitted work, the final marks for that assessment will be 22.5
(after deducting 25% of the marks actually obtained for the resubmitted work).
c. Period of resubmission: The student will have to resubmit the work one week from the date he
or she is advised to resubmit. For example, if the formal advice to resubmit was communicated to
the student on a Sunday (latest by 5 pm), the student will have to resubmit the work latest by next
Sunday 5 pm.
d. If the re-submitted work is also detected to be plagiarized, then the work will be awarded a zero.
e. Resubmission of the work beyond the maximum period of one week will not be accepted and
the work will be awarded a zero.
B. Any further offence of plagiarism
a. If any student is again caught in an act of plagiarism during his/her course of study (either in the
same module, same semester or in any other semester), the student will directly be awarded zero
for the work in which plagiarism is detected. In such cases, the student will not be allowed to resubmit the work.
C. Guidelines
a. Type 1: In case plagiarism is detected in any component or part submission (submitted at
different times) of one assessment (assignment), the deduction in marks will be applicable for the
whole assessment (assignment), even if only the component or part submission alone needs to be
resubmitted.
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b. Type 2: In case plagiarism is detected in a group assessment, all students of the group will be
considered as having committed an act of plagiarism irrespective of whether plagiarism is on
account of the act of all or a few or only one member. The policy will then be applied to all students.
c. Type 3: Combination of Type 1 and Type 2: In case plagiarism is detected in any component or
part submission (submitted at different times) of a group assessment (assignment), the deduction
in marks will be applicable for the whole assessment (assignment), even if only the component or
part submission alone needs to be resubmitted. All students of the group would be considered as
having committed an act of plagiarism irrespective of whether plagiarism is on account of the act
of all or a few or only one member. The policy will then be applied to all the students of the group.
d. Type 4: Variation of Type 1 and Type 2: In cases where the assessment consists of components
or part submissions that could be a group assessment component (e.g. group assignment) and an
individual assessment component (e.g. individual reflection), the following will be applicable:
1. If plagiarism is detected in the group assessment component, all students of the group will be
considered as having committed an act of plagiarism, irrespective of whether plagiarism is on
account of the act of all or a few or only one member. The policy will then be applied to all students
of the group. In such cases the group assessment component will be resubmitted as per the policy.
2. If plagiarism is detected in the individual assessment component, the individual assessment
component will be resubmitted as per the policy. The policy will then be applied to that student
alone.
3. In both cases (a) and/or (b), the deduction in marks will be applicable for the whole assessment
(assignment).
D. Amount of similar material
a. The total amount of similar material in any form of student work from all sources put together
should not exceed 30% (including direct quotations).
b. The total amount of quoted material (direct quotations) in any form of student work from all
sources put together should not exceed 10%.
c. The total amount of similar material in any form of student work from a single source should
not exceed 7 percent. However, cases having a similarity of less than 7 percent in such cases may
still be investigated by the faculty depending on the seriousness of the case.
d. If faculty member find enough merit in the case of a student work with a similarity (with a single
source) of more than 7 percent as not a case of plagiarism, the faculty member should provide
detailed comments/remarks to justify the case.
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