OPMT 303 1st Edition Lecture 14 Previous Chapter Outline 1 Tableau Method 2 Overtime in US companies 3 Master Production Schedule 4 MRP and ERP 5 Typical MRP format 6 MRP 7 Capacity Requirements Planning Chapter Outline 1 Pull System 2 Production in Small Quantities 3 Simplified Processes 4 Zero Buffer Inventories 5 Necessity to Produce Perfect Quality 6 Constant Improvements 7 Purchasing I JIT and lean operations a Pull system i Advantages 1 The entire production line must work together teamwork 2 No piling inventories in front of a slow or out of order station b Production in small quantities i Advantages These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute c d e f g 1 Small lots get used up sooner leading to defective parts being caught earlier 2 This also reduces scrap and rework and allows sources of problems to be quickly caught and corrected while evidence of possible causes is still fresh 3 Factory floor space is cut and work stations may be positioned very close together a Allows employees to see and talk to each other learn one another s jobs b Improves staffing flexibility and improves teamwork 4 Operations tasks are closely linked so a problem at one station leads to a problem at another station ripple effect 5 Production activity control is simplified and cost of control of staff forklifts conveyors racks and control systems are reduced 6 Lead time can be cut very substantially Simplified processes i Group technology ii Line layout 1 U shaped layout a Advantage i Facilities communication among workers ii One worker can do multiple tasks iii Total preventive maintenance 1 Advantages a Minimize breakdown cost b Increase production life of equipment iv It is necessary to reduce setup time that results from producing in small quantities 1 Advantages a Engineers are forced to eliminate long lasting setups Zero buffer inventories i Advantages 1 Production problems become visible Necessity to produce perfect quality i Results from producing in small quantities and lack of buffer inventories ii Advantages 1 Reduction in reworks scraps and production costs 2 Increased reputation and possible increase in market share Constant improvement i Advantages 1 Many small problems can be eliminated by workers themselves ii Complacency is the first step to a disaster Purchasing i Supplier selection 1 Traditional purchasing a Bidding for lowest price b Multiple sources 2 JIT purchasing ii iii iv v vi a Long term contract at fair price for high quality b Single source Purchase lot size 1 Traditional purchasing a Large lot size and infrequent deliveries 2 JIT purchasing a Small lot size b Frequent on time deliveries Distance 1 Traditional purchasing a Not important 2 JIT purchasing a Critical Inspection 1 Traditional purchasing a Buyer 2 JIT purchasing a Supplier Product specs 1 Traditional purchasing a Tight which inhibit supplier initiative to innovate 2 JIT purchasing a Loose which allows supplier to innovate Supplier customer relations 1 Traditional purchasing a Adversarial 2 JIT purchasing Partnership with both working to meet common goals