Unformatted text preview: While
it is easy to see how this belief may have arisen, it is not easy to dispel. In general, there was a lack
of understanding that there are tradeoffs involved in batching: in some environments (namely large
volume consumer manufacturers with uncertain demand) it tends to increase inventory, hide defects,
and can lead to overproduction. However, in the case of the MTSA machine and the products in
question, the increased inventory costs (both in terms of storage and capital) were minimal, hidden
defects are irrelevant because every card must be rigorously tested for quality regardless of whether
they were batched or not, and production is "pulled" from customer demand on existing contracts.
Therefore, these concerns were far outweighed by the extra electricity cost due to overprocessing
muda with the existing equipment and flow. While smaller batch sizes can ultimately be a goal, it
should be achieved in conjunction with right-sizing the equipment to customer demand. 5.2 Real-time feedback The second component of the hypothesis field tested at Raytheon was that real-time feedback on
electricity usage to operators would reduce electricity...
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- Spring '14
- Energy Policy, ........., Energy development