Sterilization--the sterilization process uses a large Cobalt radiation sterilizer.After batches of packaged instruments(cardboard container,plastic container,and instruments)are placed into the sterilizer,the sterilizer is turned on for about an hour.The radiation penetrates cardboard and plastic to destroy any potentially harmful contaminants.The sterilizer can sterilize as much product as will fit inside its four walls.Capacity limitations have not been a problem thus far. Sterilized instrument are immediately moved into finished goods inventory. The Operations Organization The entire operations organization reports up through the Vice President of Operations, Kenneth Strangler(see Exhibit 1 for an organization chart of operations).Functions immediately reporting to Strangler include several plant managers (one for each of Meditech's four manufacturing facilities),a director of supplier management,and a director of planning, distribution,and customer service.Other vice presidents(not shown)exist for marketing and sales,product development,and finance.All vice presidents report to the highest officer in the company,the President of Meditech.The plant managers in the organization have responsibility for production personnel,engineering technicians,quality assurance,support services,and material supply for their respective facilities.Reporting directly to the plant managers are several business units.Each business unit has full responsibility for either the assembly of a particular product family or,in the case of packaging and sterilization,for an entire production process.The most important job of each assembly business unit is to meet the production schedule every week.Meeting the schedule ensures a constant supply of bulk instruments to the packaging/sterilization process.The process of determining assembly and packaging/ sterilization schedules will be discussed below. Also reporting to the Vice President of Operations are Supplier Management and Planning, Distribution,and Customer Service.Supplier Management works on relationships with suppliers,including establishing purchasing contracts and finding new suppliers if necessary.The Planning,Distribution,and Customer Service department does everything it can to ensure that customers receive product when needed.The positions within the Customer Service department include the Manager of Customer Service and Distribution,Dan Franklin,the Manager of Central Planning,the Manager of Inventory,and a Manager of Logistics.Customer Service deals with everything from occasional customer complaints to establishing strategies to improve delivery service to customers.Customer Service representatives work with dealers and affiliates to keep them updated on product delivery schedules and problems.Often this responsibility places the Customer Service representative in direct contact with hospital personnel. While Customer Service handles issues concerning the movement of product out of finished goods inventory,Central Planning ensures that adequate finished goods are available to meet incoming orders.They develop monthly production plans that are used by the business units to determine weekly and daily schedules. Charles Stout,the Inventory Manager,determines the finished goods inventory policy and establishes parts and bulk inventory guidelines for the business units.When a mandate to reduce inventory is passed down from higher levels of management,the Inventory ManagerSterilization -- the sterilization process uses a large Cobalt radiation sterilizer. After batches of packaged instruments (cardboard container, plastic container, and instruments) are placed into the sterilizer, the sterilizer is turned on for about an hour. The radiation penetrates cardboard and plastic to destroy any potentially harmful contaminants. The sterilizer can sterilize as much product as will fit inside its four walls. Capacity limitations have not been a problem thus far. Sterilized instrument are immediately moved into finished goods inventory. The Operations Organization The entire operations organization reports up through the Vice President of Operations, Kenneth Strangler (see Exhibit 1 for an organization chart of operations). Functions immediately reporting to Strangler include several plant managers (one for each of Meditech’s four manufacturing facilities), a director of supplier management, and a director of planning, distribution, and customer service. Other vice presidents (not shown) exist for marketing and sales, product development, and finance. All vice presidents report to the highest officer in the company, the President of Meditech. The plant managers in the organization have responsibility for production personnel, engineering technicians, quality assurance, support services, and material supply for their respective facilities. Reporting directly to the plant managers are several business units. Each business unit has full responsibility for either the assembly of a particular product family or, in the case of packaging and sterilization, for an entire production process. The most important job of each assembly business unit is to meet the production schedule every week. Meeting the schedule ensures a constant supply of bulk instruments to the packaging / sterilization process. The process of determining assembly and packaging / sterilization schedules will be discussed below. Also reporting to the Vice President of Operations are Supplier Management and Planning, Distribution, and Customer Service. Supplier Management works on relationships with suppliers, including establishing purchasing contracts and finding new suppliers if necessary. The Planning, Distribution, and Customer Service department does everything it can to ensure that customers receive product when needed. The positions within the Customer Service department include the Manager of Customer Service and Distribution, Dan Franklin, the Manager of Central Planning, the Manager of Inventory, and a Manager of Logistics. Customer Service deals with everything from occasional customer complaints to establishing strategies to improve delivery service to customers. Customer Service representatives work with dealers and affiliates to keep them updated on product delivery schedules and problems. Often this responsibility places the Customer Service representative in direct contact with hospital personnel. While Customer Service handles issues concerning the movement of product out of finished goods inventory, Central Planning ensures that adequate finished goods are available to meet incoming orders. They develop monthly production plans that are used by the business units to determine weekly and daily schedules. Charles Stout, the Inventory Manager, determines the finished goods inventory policy and establishes parts and bulk inventory guidelines for the business units. When a mandate to reduce inventory is passed down from higher levels of management, the Inventory Manager 4