Process Management Principles for Increasing the Energy Efficiency

While it is easy to see how this belief may have

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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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