NRevStuChapter19 - 11 Quality, Time and the Theory of...

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Click to edit Master subtitle style Quality, Time and the Theory of Constraints Chapter 19 11
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Lean Practices 22 Goal is to eliminate waste while satisfying the customer and providing a positive return to the company Lean practices include: l Continuous improvement l Just-in-time manufacturing l Total quality management
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Traditional Production 33 Work is pushed through the system in order to produce as much as possible and keep everyone busy l Results in large inventories Accumulates raw materials so that operations won’t be disrupted by material outtages Work in process is “pushed” through to the next workstation (e.g., bottlenecks) Finished goods may be obsolete before sold Leads to holding costs and encourages inefficient and sloppy work (e.g., defects, spoilage)
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Problems with Batch 44 Creates inventory costs Creates delays associated with storing and moving inventory l These delays increase cycle times, thereby reducing service to customers Delays may even happen before manufacturing begins
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Inventory-Related Costs 55 Demands for inventory lead to huge costs in organizations, including the cost of moving, handling, storing, Factory layouts and inefficiencies that create the need to hold work-in-process inventory may hide other problems leading to excessive costs of rework
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Reducing Raw Material Inventory: 66 Long-term relationships with limited number of vendors (EDI) Consideration of quality and customer service (along with price) when selecting vendors Empowering employees to order inventory as needed Sharing production plans with vendors to eliminate backorders (EDI) Receiving materials at the place where they are needed for production (as opposed to a
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Reducing Work-in-Process Inventory: 77 Reduce cycle time – time required to complete a process l Setup time – time required to prepare equipment to produce a particular product Switching from batch processing to continuous processing helps l Processing time – the only element that adds value to the product l Movement time – may require rearranging factory layout
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Reducing Work-in-Process Inventory: 88 Reduce cycle time – time required to complete a process l Waiting time – time spent in temporary storage or on the line; can be reduced by switching from a materials push to a materials pull system l Inspection time – empowering employees during previous stages of the product to make quality- improvement suggestions (and implementing those suggestions) may reduce inspection time
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Reducing Finished Goods Inventory 99 Key is anticipating customer demand – accomplished by knowledge sharing with customers. Access to their inventory levels allows firm to recognize changing consumer tastes and adjust production and/or product mix.
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Just-in-Time Manufacturing 10 Just-in-time ( JIT ) manufacturing is a comprehensive and effective manufacturing system Just-in-time production requires making a
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NRevStuChapter19 - 11 Quality, Time and the Theory of...

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