Team- 5 Chapter 22,23,24

By K. Manoj ,Naseer, B. Ramya and Sandesh.

Actually make more money todayand in the future!Why is that important to know?• It enables us to answer the question “what isproductivity?”• An action that moves us toward making moneyis productive.• An action that takes us away from makingmoney is non-productive.

PHENOMENA IN PRODUCTION

Kind of information that we cannot precisely predict. These types of information vary from one instance to the next.

Dependent events

Statistical fluctuations

An event, or a series of events, must take place before another can begin . . . the subsequent event depends upon the ones prior to it

Remember ….

We are always talking about the organization as a whole—not about the manufacturing department, or about one plant, or about one department within the plant.

We are not concerned with local optimums.

Remember ….

We are always talking about the organization as a whole—not about the manufacturing department, or about one plant, or about one department within the plant.

We are not concerned with local optimums.

OPERATIONAL MEASUREMENT

Throughput the rate at which the system generates

money through sales

Throughput the rate at which the system generates

money through sales

Inventory all the money that the system has invested in

purchasing things which it intends to sell

Inventory all the money that the system has invested in

purchasing things which it intends to sell

Operational expense all the money the system spends in order to

turn inventory into throughput

Operational expense all the money the system spends in order to

turn inventory into throughput

~ YIS//062009 ~

BOTTLENECK RESOURCES• is any resource whose capacity

is equal to or less than the demand placed upon it

NON- BOTTLENECK RESOURCE• any resource whose capacity is

greater than the demand placed on it.

Balance the flow, not capacity !!

You should not balance capacity with demand. What you need to do instead is balance the flow of product through the plant with demand from the market

MANAGE YOUR RESOURCES!!

If your bottlenecks are not maintaining a flow sufficient to meet demand and make money, there is only one thing to do.

FIND MORE CAPACITY

To increase the capacity of the plant is to increase the capacity of only the bottlenecks.

PUT QC IN FRONT OF THE BOTTLE NECKS

Make sure the bottleneck works only on good parts by weeding out the ones that are defective.

If you scrap a part before it reaches the bottleneck, all you have lost is a scrapped part. But if you scrap the part after it's passed the bottleneck, you have lost time that cannot be recovered.

Be sure the process controls on bottleneck parts are very good, so these parts don't become defective in later processing.

Whatever the bottlenecks produce in an hour is the equivalent of what the plant

produces in an hour.

So ... an hour lost at a bottleneck is an hour lost for the entire system.

Capacity of the plant =

the capacity of its bottlenecks