Analyze GLADSTONE the given case and create a PowerPoint presentation.
Introduction
You will analyze GLADSTONE the given case and create a PowerPoint presentation.
Instructions
Download and carefully read the attached file. Review the efficiency of both plans and decide what to do.
Follow the slide setup below, add Audio to each slide as if you were to present in class.
PowerPoint Presentation: Analysis of Gladstone Forwarders & Carrier Services, Inc.
Slide 1: Title slide
Title of presentation
Name of presenter
Date
Slide 2: Introduction
Brief overview of the case of Gladstone Forwarders & Carrier Services, Inc.
Purpose of the presentation
Objectives of the analysis
Slide 3: Problem statement
Description of the issues that Pat encountered as the new CEO of Gladstone Forwarders & Carrier Services, Inc.
Identification of the main problem to be solved.
Slide 4: Analysis of the proposed solution
Explanation of the proposed solution to the problem
Evaluation of the efficiency of the proposed solution
Slide 5: Analysis of the alternative solution
Explanation of the alternative solution to the problem
Evaluation of the efficiency of the alternative solution
Slide 6: Comparison of the proposed and alternative solutions
Comparison of the advantages and disadvantages of the proposed and alternative solutions
Identification of the best solution
Slide 7: Implementation plan for the two solutions
Description of the implementation plan for the chosen solution
Timeline and total budgets
Slide 8: Cost analysis of the proposed solution Extra Equipment & Personnel etc.
Calculation of the cost of buying two additional forklifts
Calculation of the cost of hiring two operators and one helper per driver
Calculation of the annual operating cost of the two forklifts Estimated.
Calculation of the total cost of the proposed solution
Slide 9: Cost analysis of the alternative solution Install Racks
Calculation of the cost of Installing racks.
How much are any saving with the racks.
Calculation of the total cost of the alternative solution
Slide 10: Comparison of the costs of the proposed and alternative solutions
Comparison of the costs of the proposed and alternative solutions
Identification of the most cost-efficient solution and time to recover investment.
Slide 11: Conclusion
Recap of the main points discussed in the presentation.
Summary of the analysis
Recommendation for the best solution to the problem
Slide 12: References
List of sources used in the presentation.
APA format
Requirements
PowerPoint presentation, 12 slides in length
APA format
Save your PowerPoint as a PDF file to submit for this assignment.
***** BELOW IS THE SCENARIO NEEDED FOR THIS ASSIGNMENT****
Requirements: 12 SLIDES INCLUDING FRONT PAGE AND REFERENCES
SCM2221 ASSIGNMENT QUESTION CASE # 3 GLADSTONE – Warehouse Operations Your assignment task is to review the changes, then tell Pat your recommendation: Follow instructions closely. GLADSTONE FORWARDERS & CARRIER SERVICES, INC. Pat just took over as CEO the warehousing, purchasing and export operation at GLADSTONE FORWARDERS & CARRIER SERVICES, INC. There had been six managers in the previous two years, none of whom had any warehousing or logistics experience. Things had gone bad for all of them at GLADSTONE. So, Pat was in a situation where it was solve the problems or be counted as number seven. You might imagine Pat found many issues in this 15-year-old company ranging from organizational to labor utilization. Pat got started with a review of some preliminary financials and crossed them with warehouse and export operations reports. The warehouse was located in an industrial area near the international airport and a major US seaport. The floor space was about 37,500 square feet. It was dimensioned some 150 feet on the street side; north side, with three truck-height doors, each with dock levelers and 250 feet on the west side, with a railroad spur and boxcar-height dock along that side with one very large door that was designed for railroad car discharge. The south and east sides, had no possible warehouse access (See diagram of warehouse attached). Pat could see the racking was set up for the railroad car handling but it had been ten years since it was used and the spur was no longer in condition to receive a railroad car; it would cost upwards of $700 a lineal foot to repair and that would exceed $800,000. Pat quickly took that off the “to do list” as a not feasible. Pat turned from the numbers and used observation to gather data. The racking (pallet storage) was four pallet levels high and not in great shape. Some racks were not even secured to the warehouse floor and with some structural damage, but they had been getting along. However, the east to west orientation of the racking might have been good for the railroad but caused the cargo follow problems: It seemed to take forever to discharge trucks and to then stuff the export containers. One of the previous managers with the staff had proposed adding on two more crew sets to solve the problem. That meant buying two additional forklifts at some $25,000 each unit. They must be propane mandated by county ordinance and with chain drive mast to fit inside the containers as well as capable of reaching the upper fourth level of the warehouse racks. Also, needed were two additional operators at $22.00/hour each total cost includes hourly rate, tax and insurance and one helper per driver at $12/hour each which also included hourly rate, tax and insurance. Pat had gleaned operating cost for these machines from the previous financials and estimated them at about 15% per year of their original purchase price as a good rule of thumb. Original Case designed by Professor Michael P. McCarthy BSBA, MBA, CMS Feb 2015 P a g e | 1
Although forklifts might last many years GLADSTONE’s controller confirmed to Pat that they would depreciate them over five years using IRS regulation and the bender suggested the estimated salvage value of the forklifts could equal of about 5% of the purchase price. Observing the operation, Pat watched for several days as pallets were unloaded from the delivery trucks. They would travel typically west 75 feet then south 125 feet to the center of the racks then traveled another 75 feet east to the center of the isle and put away each pallet (See diagram attached). Then the forklift retraced its route to the truck to retrieve the next pallet. Total travel: 550 feet per pallet each cycle. Based on times taken very discreetly it seemed the average speed was three miles an hour. Pat took into account an entire cycle (that is from lifting a pallet in the truck to returning to lifting the next pallet, (OSHA MAX is Five Ml/Hr.). Pat went back inside the office to do some numbers. Reviewing the service demand levels, it worked out to be about 50 export containers OUT PUT and about 50 deliveries INPUT by large over-the-road trucks with 20 pallets each per work week. The demand was therefore approximately 2,000 pallet movement (through-put) a week. GLADSTONE had already been paying overtime ,x 1.5to the crew, which had about doubled their paychecks but was straining their health and home life, not to mention the potential safety hazard of an over worked crew. Pat observed working conditions first hand noting that it could get to over 120 degrees Fahrenheit inside the container and the warehouse itself often topped 90 degrees. With this ambient, some crew members were a bit touchy, to say the least, and this was leading to labor issues. The owners of GLADSTONE were also continuously complaining about export products not getting out on schedule and even missing ships at the port, sometimes even air cargo. These last issues caused retail problems throughout the Supply Chain for the GLADSTONE’S group in Latin America with 148 stores owned and a billion US dollars in annual sales. Pat’s superiors only wanted immediate results not excuses. After great deal of thought and number crunching, Pat’s new idea was to change the direction of the racks to a north south orientation. The idea was to reduce the travel to average about 125 feet into the warehouse or basically 250 feet round trip which would be some 50% less than the current configuration. After receiving three quotes from local rack suppliers, Pat decided on an experienced local installer with a 30-year positive record. Their Bid was $22.50 per lineal foot of rack installed. Now Pat had to analyze and sell the best solution to the owners of GLADSTONE . Your job is to advise Pat Maybe look for another job. Original Case designed by Professor Michael P. McCarthy BSBA, MBA, CMS Feb 2015 P a g e | 2
DIAGRAM POINTS NORTH (Note each square 15’ X 15’) OLD RACKSNEW RACKS123123Load & Dispatch Area PALLETRACKSLoad & Dispatch Area PALLETRACKSRailDoorRailDoor75 FeetPALLETRACK125 feet PALLETRACKPALLET RACKS125 FeetPALLET RACKS75 feet PALLET RACKS PALLET RACKS Pallet RackOriginal Case designed by Professor Michael P. McCarthy BSBA, MBA, CMS Feb 2015 Page | 3
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