ExxonMobil Inc. Company

Assignment # 2
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ExxonMobil Inc Company Case Study
ExxonMobil Company demand for gas and oil products is high hence need to manage capacity, demand, inventory and supply chain to meet customer satisfaction. This section discusses how the organization handles the capacity, demand, supply chain and inventory. The oil and gas industry purposes to create a safe work supply for the industry now and in future.ExxonMobil primary aim is to ensure that people go to work and get home safely.
Capacity
Capacity is the maximum output level that an organization can sustain to provide service or make a product. Capacity planning demands the management to accept the product process limitations. In essence the production system factors conversion process, input requirements and output process. After considering long-term planning and forecast organizations should undertake capacity planning.ExxonMobil capacity would be the ability of a certain system to produce output at a given time. In operations, management capacity is deemed as an amount of the input resources available to generate relative output over a certain period of time. Eccles & Krzus (2018) claims that In ExxonMobil, capacity planning is essential in determining optimal resource utilization and plays a crucial role in the decision-making process, for instance, modification to product lines, an extension of existing operations and extension of starting new products.
Optimization of transfer batch size
The selected batch size determines the flow time and flow capacity. Hence to maximize capacity and reduce the flow time optimization of transfer batch size is fundamental. However to establish the transfer batch size, the organization undergoes processes such as determining the bottlenecks of the process, figures out the capacity trip per hour, factors the material release policy, determines the maximum batch sizes that the transportation can accommodate and sets the batch size to meet the objectives of the operation .Notably, the batches in a process have different sizes.
Resource utilization: Small batch sizes smoothen the workload operations while big batch sizes produce longer progressive active periods accompanied by longer progressive inactive periods.
Flow time: Small batch sizes minimize the parts batch time to run through the system. Conversely, large batch sizes increase the batch time consumed in the process.
Facility traffic: Small batch sizes generate traffic in the facility due to rapid transfers that occur. In certain scenarios, the situation may be undesirable and dangerous.
Inventory storage: Small batch sizes amount to minimal time for each part, impacting on minimal Work in progress inventory.
Optimization of batch size with operation setups
ExxonMobil uses its resources to produce more than one type of product. For instance, the organization recycles its petroleum waste products. ExxonMobil has product versatility that ensures it maximizes on its resources. However, changing from one product to another consumes a lot of time and labor. The organization minimizes the setups and the costs linked with them, diverse processes produce a multiple diversity of flow units in batches. Worth no...