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1
Q

Type of Variability

A
  1. Dysfunctional

2. Strategic

2
Q

Dysfunctional variability

A

Rework, machine breakdowns, wrong specifications, etc.

3
Q

Strategic variability

A

Many product options, custom-engineered products, highly variable demand

4
Q

Choice of strategy to deal with variability

A
  1. Exploit

2. Eliminate

5
Q

Work “smarter” not faster

A

Time-based management thinking (instead of cost-based which is bad)

6
Q

Impact of lead time

A

Waste

7
Q

Waste

A

All the things that would be reduced or eliminated, and all the new opportunities you would have if the lead time was reduced

8
Q

Things to reduce

A

Activities, tasks, material, resources

9
Q

Waste examples

A

Overtime costs, forecasts development, inventory costs, obsolescence, order cancellations, loss of sales to competition, meetings to set new priorities

10
Q

Consequences of reducing waste

A

Less overhead (operating expenses)
More productivity
Higher sales

11
Q

The need for safety stocks (Make to Forecast) produces

A

High WIP and Inventory

12
Q

The need for safety time (Make to Order) produces

A

High WIP and Inventory

13
Q

Lead time is the result of

A

Dynamics and interactions between resources and product/tasks

14
Q

Dysfunctional effect of those “nice” large orders

A

Lot size of one product impacts lead time of other products

15
Q

Strategically plan for spare capacity (operate at 75-85% capacity)

A

As utilization approaches 100% queues get longer and longer (Highway or supermarket)

16
Q

Invest in people and machines

A

Not in warehouses

17
Q

Manufacturing system view

A

Graph: Lead time (Y) vs. Lot Size (X)

There is a U-shape, if lot size increases too much lead time starts to increase. Need to find the minimum (optimal lot size).

18
Q

Cost-based view

A

Graph: Efficiency (Y) vs. Lot Size (X).

Square root of x. As the lot size increases, the efficiency increases. (This approach does not help reduce lead time)

19
Q

MRP/ERP will increase lead time

A

To be on-time, each area must quote a lead time that it can meet regardless of workload (worst-case). Total MRP/ERP lead time becomes a collection of worst-case scenarios.

20
Q

Why ordering long lead time items in large quantities is bad?

A

Beer game (everybody orders more, and then the supplier lead time increases more)