Powell Logging Company - Production Optimization

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  • 1. Powell Products
    Presented by,
    Iron MBA’s
    Net, Velvet, Christopher
  • 2. Overview
    Harvested Agreements:
    • Oak logs = 18,000 feet
    • 3. Pine logs = 16,000 feet
    Machine Capacity:
    • Stripping machine = 60 hours per week
    • 4. Cutting machine = 40 hours per week
  • Goal and Recommendation:
    “The optimal production plan that achieves the highest contribution.”
    No unused time on both machines!
    Highest Contribution!
  • 5. Limitations
    • Pine Wood
    • 6. Stripping of Pine Wood
    • 7. Cutting Machine
  • Limitations: Pine vs. Oak
    Pine Wood:
    • Bark has more resin (sap) making it harder to strip
    • 8. Softwood on interior, it lacks pores that transport more water, therefore it is easier to cut
    Oak Wood:
    • Hardwood
    • 9. Has pores, so it has greater water transportation throughout the wood
    • 10. More consistent from bark to interior – same amount of time to cut and strip
  • Limitations: Stripping Pine
    • Bottleneck in stripping pine
    • 11. Stripping takes longer time than cutting process, therefore, cutting machine is not being productive 2/3 of the time
    • 12. Backlogged pine in stripping process
  • Limitations: Cutting Machine
    • Inefficient cutting machine
    • 13. Needs more maintenance and has less production capacity
  • Questions?