Lecture 2 Flashcards
3 step Production Processes
- Source the parts needed
- Make the product
- Deliver the product
How is production process organized? (two things)
- Customer requirements
- The organizations goal
Lead time
The time which is spend between the point the customer has placed the order and the customer gets the order.
Customer order decoupling point
Point where inventory is positioned to allow entities in the supply chain to operate independently
Make-to-stock
Customer is served “on demand” from finished goods inventory (e.g. Clothing)
Trade-off (inventory costs between customer service) make-to-stock can be improved by (4):
- Better knowledge of customer demand
- Faster transportation
- Faster production
- Flexible manufacturing
Use lean manufacturing to achieve higher service levels for a given inventory investment
Assemble-to-Order
Preassembled components are put together in response to a specific customer order (e.g. IKEA PAX wardrobe)
Make-to-Order
The product is built directly from raw materials and components in
response to a specific customer order (e.g. Designing the look of your car)
Engineer-to-Order
Firm works with the customer to design and then make the product (e.g. Boeing’s process of making commercial aircraft)
Production Process Map
A clear overview of how the supply chain process works. High-Level map to understand material flows and where inventory is held.
Total average value of inventory
The total investment in inventory at the firm (Raw materials, WIP, Finished goods)
Project Layout
The product remains in a fixed location. Labor, material and equipment moved to the product.
Boeing example
Workcenter Layout (Referred to Job Shop)
Arrange workcenter in a way that optimizes movement of material. Competes on quality, speed, customization but not on economies of scale. Similar machines grouped together to work on different products.
Manufacturing Cell Layout
Dedicated area where products that are similar in process requirements are produced. Machines grouped together to work on similar products.
Manufacturing Cell Development. 3 step processs
- Group parts into families that follow a common sequence of steps
- Identify dominant flow patterns for each part family
- Machines and associated processes are physically regrouped into cells
