Operations Management of the Royal Mint
The Objective of the Royal Mint is to provide the Government with coinage at a competitive price. It is clear that Royal Mint wants to establish itself as a low-cost producer through economies of scales i.e. Mass Production at a reduced cost.Companies plan and forecast the demand according to the future needs of the market. Forecasting demand assists in decision making with respect to investment in plant and machinery, market planning, and future sales. Some of the popular forecasting methods includeIn this case, Royal Mint Estimates the demand on a Time-series basis. In the UK, the Treasury contracts with Royal Mint on an annual basis for the likely requirements for coin in 12 months. The Mint meets every three months with executives from the UK clearing banks to discuss their currency requirements in the shorter term. These estimates are then updated at weekly planning meetings and the demand is forecasted and Royal Mint follows a Just in time work schedule. Based on these estimates, the raw material is procured and the safety stock is maintained.Agile manufacturing is the ability to accomplish rapid changeover between the manufacture of different assemblies. The rapid changeover is further defined as the ability to move from the assembly of one product to the assembly of a similar product with a minimum of change in tooling and software. Rapid changeover enables the production of small lot sizes, allowing for `just-in-time production.Inventory control is a planned approach of determining what to order, when to order and how to order and how much to stock so that costs associated with buying and storing are optimal without interrupting production and sales. Safety stock is an important measure to be calculated regarding inventory. This ensures efficient purchasing, storing, consumption, and accounting for materials. This also ensures that there is no shortage of products and there is an adequate supply of products to customers.