Production sales mixed model small lot vs batch

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Production = sales. Mixed model (small lot) vs. batch production To use mixed model production , we need reduced set-up time. When set-up times are small, capacities for mixed model and batch production are about the same. Using common handles on both boxes, you can achieve overall savings, although cost of handle may be higher on for box B. Box B Box A Standardize Box B Improved design 34
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35 JIT Main elements : 2. Job / flow design. 0 60 Stn. 1 Stn. 2 Stn. 3 Stn. 4 2, 3 60 5, 6 60 1, 4 60 7 20 2, 3 60 4 40 5, 1 50 6, 7 50 2 50 3, 4 50 1, 5 50 6, 7 50 Which design is better? Increase added value . Reduce wait and move time. Better layout / small batch
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36 JIT Main elements : 3. Self stop When problem arise in production, get help (Andon). JIT Main elements : 4. Management-labor focus To improve common understanding of business directions. Employee participation: focus groups, quality circles. Root cause Analysis: Five whys? Machine stopped 1. Why? Fuse blown. 2. Why? Inadequate bearing lubrication. 3. Why? Lubrication pump failed. 4. Why? Worn shaft. 5. Why? Chips entered inlet port (no strainer).
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37 Comparison of JIT and Traditional Factor Traditional JIT Inventory Much to offset forecast errors, late deliveries Minimal necessary to operate Deliveries Few, large Many, small Lot sizes Large Small Setup; runs Few, long runs Many, short runs Vendors Long-term relationships are unusual Partners Workers Necessary to do the work Assets
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Time magazine: Nov. 8, 2004 Jim Davis (Boston) bought company in 1972 6 employees. Specializes in sports shoes (also makes other accessories). Only company with 5 factories in the USA (some overseas). Pay: 12$/ hour, competes with 0.4$/hr. Market share 1993 2003 Nike 32.2% 36.4% Reebok 20.9% 12.5% Addidas 3.1% 9.1% New Balance 1.7% 10.9% Last summer, re-engineered a factory in, Maine, following Toyota's famously flexible production system. Departments were replaced by cells, saving 40% of floor space. Smaller batches are assembled, and if anyone identifies a faulty stitch, for instance, the problem is fixed before a large batch of defective shoes can pile up. Cut production cycle from 8 days to 8 hours, slashing inventories. 2006 sales: 1.55 billion dollars. 38
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Video-Noodles & Company This is an excellent example how lean production is used in a service company. Pay attention, in particular, how the company adopt ideas from manufacturing to offer fast and good quality service/food? 39
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