WILKINS, A ZURN COMPANY: AGGREGATE

PRODUCTION PLANNING
SCM CASE SUBMISSION

Group 4
Amarjeet Singh - 2111034
Simran Dharmapuram - 2111084
Krishanu Adhikary - 2111146
Krishnakant Gupta - 2111147
Kunal Hepat - 2111150
Navdweep Goyal - 2111191
S Pramodh Kumar - 2111239
Sagar Yadav – 2111244
Sumit Kumar – 2111293
NATURE OF WILKINS BUSINESS

Business Overview
 Wilkins is in the business of manufacturing high-quality water control products
 Totally, they manufactured 12 product lines consisting of a total of 25 product families, specializing in backflow
prevention (60% of Sales) and water pressure reduction (25% of Sales) products
Two Product categories 
 PVBs (Pressure Vacuum Breakers) - A mature product that was Make-to-stock (MTS) with heavy seasonal
demand fluctuations
 Fire Valves – Seasonal Demand but not extreme like PVBs
MAJOR CHALLENGES

Challenges:
 High raw material inventory accumulated over the years, even though the value has risen over the last 12 months as they
occupied a lot of space in the manufacturing site
 Complicated two-tier finished goods inventory system. It consisted of 52 stocking locations, but the lack of product
visibility made it difficult to carry out ship products between distributors
 Finished goods inventory was also stored in the trucks parked in the parking lots. This led to quality issues and further
quality checks 
 Production Planning forecasts were adjusted based on actual orders, current material, and instructions from senior
management
 PVB Production: There was no formal production planning strategy 
 Fire Valve: The bottleneck in production efficiency was the testing equipment
 CURRENT SCENARIO UNDER GIVEN ASSUMPTIONS

 Under given assumptions and in the current scenario, inventory shows a continuous downward trend.
 The current production capacity is less than the peak capacity of 1365 units/ day, which is adversely affecting the inventory levels
 Please refer to the attached excel file in the last slide for a detailed analysis of the situation

0 Q1 Q2 Q3 Q4
Unit sales/ week 4120 7480 9341 5983
Unit sales/ quarter 53560 97240 121433 77779
Safety stock 6175 11058 12670 26826
Production 54600 54600 54600 54600
Inventory 5940760447 17807 -49026 -72205
 LEVEL & CHASE STRATEGY

0 Q1 Q2 Q3 Q4
Unit sales/ week 4120 7480 9341 5983
 Level strategy, where entire annual demand has been adjusted
Unit sales/ quarter 53560 97240 121433 77779
Safety stock 6175 11058 12670 26826
for initial inventory and equally distributed among all the four
Production 72651.26 72651.26 72651.26 72651.26 quarters
Inventory 59407 78498 53909 5128 0  Final stock at the end of the year 2005 equals Zero

 Chase strategy, where quarterly production quantity has been

adjusted as per each quarter’s demand
 Final stock at the end of year 2005 is significantly within range,
and is meeting the target of keeping inventory level <70%
Thank you!