flexcap - Flexibility and Capacity Planning What is...

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Flexibility and Capacity Planning What is flexibility? GM examples Lessons from Flex Cap software Flex Cap model Flexibility principles Reference – Jordan, Graves “Principles on the Benefits of Manufacturing Process Flexibility,” Management Science, April 1995 Stephen C. Graves Copyright 2005 1
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What is flexibility? Ability to respond to change What type of changes? Demand volume Demand mix Product features Process or technology changes Job priorities Process yield How responsive? Stephen C. Graves Copyright 2005 2
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How to achieve flexibility? Flexible processes Short setups or changeovers Flexible work force Excess capacity Overtime Out sourcing or subcontracting Product design, e. g., modularity, common components, postponement Contracts, e.g., options Stephen C. Graves Copyright 2005 3
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BACKGROUND Forward planning in automotive industry for allocating products to assembly plants Flexibility: Ability to build different product types in the same plant at the same time Motivation: Product demand is VERY uncertain. average forecast error > 50% ! Cost of unfilled demand or poorly utilized capacity is very high. Flexible capacity is very expensive. Stephen C. Graves Copyright 2005 4
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BOC MY PRODUCT ALLOCATIONS ASSEMBLY CARLINES PLANTS CHEV J LORDSTOWN PONT J LINDEN L CAR WILMINGTON PONT N LANSING A OLDS N LANSING B BUICK N PONT H BUICK CITY OLDS H BUICK H WENTZVILLE BUICK C OLDS C ORION CAD C BUICK E HAMTRAMCK OLDS E CAD E/K IS THIS ENOUGH FLEXIBILITY? Stephen C. Graves Copyright 2005 5
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PLANNING VOLUME UNCERTAINTY PLANNING VOLUMES FOR MY 85-89 NAMEPLATE- CARLINES COMPARED TO ACTUAL PRODUCTION: Stephen C. Graves Copyright 2005 6
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This note was uploaded on 12/06/2011 for the course ESD 15.763j taught by Professor Davidsimchi-levi during the Spring '05 term at MIT.

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flexcap - Flexibility and Capacity Planning What is...

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