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    John Clark Rosales
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    The document discusses appropriate processes for Lego's turnaround efforts. It determines that a batch production process would be suitable as Lego aims to become a lifestyle company handling a moderate variety of products. It also explores how technology and automation can help Lego regain its competitive position by developing new products and services more efficiently through increased productivity, quality, and production rates. Specific calculations show that with a 24 hour production cycle and 0.5 minute output rate, Lego's daily production would be 2,880 units. The total transportation costs for moving loads between departments at a cost of P2 per meter is calculated to be P9,900.

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    The document discusses appropriate processes for Lego's turnaround efforts. It determines that a batch production process would be suitable as Lego aims to become a lifestyle company handling a moderate variety of products. It also explores how technology and automation can help Lego regain its competitive position by developing new products and services more efficiently through increased productivity, quality, and production rates. Specific calculations show that with a 24 hour production cycle and 0.5 minute output rate, Lego's daily production would be 2,880 units. The total transportation costs for moving loads between departments at a cost of P2 per meter is calculated to be P9,900.

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    266 views2 pages

    LEGO

    Uploaded by

    John Clark Rosales
    The document discusses appropriate processes for Lego's turnaround efforts. It determines that a batch production process would be suitable as Lego aims to become a lifestyle company handling a moderate variety of products. It also explores how technology and automation can help Lego regain its competitive position by developing new products and services more efficiently through increased productivity, quality, and production rates. Specific calculations show that with a 24 hour production cycle and 0.5 minute output rate, Lego's daily production would be 2,880 units. The total transportation costs for moving loads between departments at a cost of P2 per meter is calculated to be P9,900.

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    of 2

    JOHNYD R.

    BELARMA
    BSBA-OM 2ND YEAR
    LEGO’S TURNAROUND: BRICK BY BRICK

    1.) WHAT IS THE APPROPRIATE BASIC PROCESS TYPE FOR LEGO?


    Answer: The appropriate basic process type for LEGO is batch. Since they are decided to become
    a lifestyle company, they need to use a moderate volume of goods desired, so they can handle a
    moderate variety of products as a start. It will be appropriate since the products can be easily
    added.

    2.) HOW CAN TECHNOLOGY AND AUTOMATION HELP THE COMPANY IN REGAINING ITS
    COMPETITIVE POSITION IN THE MARKET?
    Answer: Technology and automation help the company in regaining its competitive position in
    the market by developing new and improved products, services, or processes. Because
    technology refers to the application of scientific discoveries to the development and
    improvement of goods and services. Automation enables companies to operate automatically
    that offers a number of advantages over human labor. It has low variability, whereas it is difficult
    for a human to perform a task in the same way, in the same amount of time, and on repetitive
    basis which leads to a company’s competitive advantage. Technology and automation with
    combinations of skills is no doubt a company’s success. The Danish company is the second largest
    in its industry in terms of sales. Technology and automation can help the company, or a business
    improve efficiencies across functions from manufacturing to marketing, and ensure costly errors
    are prevented from happening. This in turn can add to business growth. Insight's technology also
    proves valuable insights about business. Technology and automation are such an integral part of
    our life that we often do not think about the impact it has. From our mobile phones, technology
    is ever pervasive. In the field of business, words like automation, machine learning, artificial
    intelligence have become common. Most businesses today have some idea about what it entails
    and understand that it is important to embrace technology and automation. Some of the
    advantages that come from these technologies include increased productivity, higher rates of
    production, better quality service, and the efficient use of materials.

    3.) IF LEGOS OPERATES24 HOURS A DAY WITH AN OUTPUT RATE OF 0.5 MINUTE, WHAT IS THE
    OUTPUT RATE OF THE COMPANY PER DAY?

    Operating time per day

    Answer: Output rate = ———————————

    Cyle time

    1440

    Output rate = ————————— = 2,880 unit per day

    0.5

    4.) WHAT IS THE TOTAL TRASNPORTATION COST INCURRED BY LEGO IF THE COST PER METER
    TO MOVE ANY LOAD IS P2?

    Answer:

    Trip Distance (m) Department pair Workflow Transportation cost

    A-B 25 1-3 180 25 X 180 = 4,500


    B-C 40 2-3 90 40 X 90 = 3,600
    A-C 45 1-2 40 45 X 40 = 1,800
    TOTAL: P9,900

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