Using Cyclic Planning to Manage Capacity at ALCOA

Edie Schmidt, Maqbool Dada, James Ward and Duane Adams
Additional contact information
Edie Schmidt: School of Technology, Purdue University, West Lafayette, Indiana 47907-1310
Maqbool Dada: Krannert Graduate School of Management, Purdue University, West Lafayette, Indiana 47907-1310
James Ward: Krannert Graduate School of Management
Duane Adams: ALCOA, Engineering Products Division, Lafayette, Indiana 47905

Interfaces, 2001, vol. 31, issue 3, 16-27

Abstract: ALCOA makes aluminum-tubing products to order. The product lines' success caused a backlog of customer orders and long customer lead times. This problem was exacerbated by frequent machine breakdowns at a bottleneck operation. ALCOA implemented cyclic planning to improve capacity management. The results were immediate and dramatic. Over eight months, output increased by over 20 percent, almost eliminating the backlog of customer orders. The cyclic-planning implementation resulted in additional benefits throughout the organization, including improved workforce planning and better machine maintenance scheduling.

Keywords: INDUSTRIES—MINING/METALS; INVENTORY/PRODUCTION—POLICIES (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (4)

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