OPMT 303 1st Edition Lecture 14Previous Chapter Outline1. Tableau Method2. Overtime in US companies3. Master Production Schedule4. MRP and ERP5. Typical MRP format6. MRP7. Capacity Requirements PlanningChapter Outline1. Pull System2. Production in Small Quantities3. Simplified Processes4. Zero Buffer Inventories5. Necessity to Produce Perfect Quality6. Constant Improvements7. PurchasingI. JIT and lean operationsa. Pull systemi. Advantages1. The entire production line must work together (teamwork)2. No piling inventories in front of a slow or out of order stationb. Production in small quantitiesi. AdvantagesThese 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.1. Small lots get used up sooner leading to defective parts being caught earlier2. This also reduces scrap and rework and allows sources of problems to bequickly caught and corrected while evidence of possible causes is still fresh3. Factory floor space is cut and work stations may be positioned very closetogether.a. Allows employees to see and talk to each other, learn one another’s jobsb. Improves staffing flexibility and improves teamwork4. Operations tasks are closely linked so a problem at one station leads to aproblem at another station (ripple effect)5. Production activity control is simplified and cost of control of staff, forklifts, conveyors, racks, and control systems are reduced6. Lead time can be cut very substantiallyc. Simplified processes i. Group technologyii. Line layout1. U shaped layouta. Advantagei. Facilities communication among workersii. One worker can do multiple tasksiii. Total preventive maintenance1. Advantagesa. Minimize breakdown costb. Increase production life of equipmentiv. It is necessary to reduce setup time that results from producing in small quantities.1. Advantagesa. Engineers are forced to eliminate long lasting setupsd. Zero buffer inventoriesi. Advantages1. Production problems become visiblee. Necessity to produce perfect qualityi. Results from producing in small quantities and lack of buffer inventories.ii. Advantages1. Reduction in reworks, scraps, and production costs2. Increased reputation and possible increase in market sharef. Constant improvementi. Advantages1. Many small problems can be eliminated by workers themselvesii. Complacency is the first step to a disasterg. Purchasingi. Supplier selection1. Traditional purchasinga. Bidding for lowest priceb. Multiple sources2. JIT purchasinga. Long term contract at fair price for high qualityb. Single sourceii. Purchase lot size1. Traditional purchasinga. Large lot size and infrequent deliveries2. JIT purchasinga. Small lot sizeb. Frequent on time deliveriesiii. Distance1. Traditional purchasinga. Not important2. JIT purchasinga. Criticaliv. Inspection1. Traditional purchasinga. Buyer2. JIT purchasinga. Supplierv. Product specs1. Traditional purchasinga. Tight which inhibit supplier initiative to innovate2. JIT purchasinga. Loose, which allows supplier to innovatevi. Supplier/customer relations1. Traditional purchasinga. Adversarial2. JIT purchasingPartnership with both working to meet common