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Productions Inventory
Factory Physics
91
Engineering
Undergraduate 3
10/27/2010

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Term
Just in Time (JIT)
Definition
producing only what is needed
Term
1)Zero defects
Definition
good quality parts with zero defects
Term
2)Zero (excess) lot size
Definition
more frequently stated as a lot size of one, the goal is to replenish stock as taken, from one lot. Not always possible bc different parts from different lots are needed
Term
3)Zero setups
Definition
by using large batch sizes, reduces setups. ie, changing paint on an assembly line
Term
4)Zero breakdowns
Definition
can have no unplanned failures
Term
5)Zero handling
Definition
not to be handled more than necessary, no extra moves, feed material directly from workstation to workstation
Term
6)Zero lead time
Definition
very close to the core of the zero inventory objective, a downstream workstation request parts and they are provided immediately
Term
7)Zero zurging
Definition
no sudden changes
Term
Implementing JIT
Definition
Setup Reduction
Term
internal setup
Definition
tasks that take place when machine is stopped
Term
external setup
Definition
tasks that can be completed while the machine is running
Term
1)Process Control
Definition
includes use of statistical process control (SPC) charts and other statistical methods, but also involved simply giving workers responsibility for quality and the authority to make changes when needed
Term
2)Easy-to-see quality
Definition
display boards, gauges, meters, plaques, and awards; poka-yoke:design the system so that the worker cannot make a mistake
Term
3)Insistance on compliance
Definition
if materials from a supplier did not measure up, they were sent back. Quality comes first and output second
Term
4)Line stop
Definition
stoppling the line to correct quality problems; ie, using lights to display status' of different areas of the plant
Term
5)Correcting one's own errors
Definition
no rework lines as seen in the US, fix problems as seen/found
Term
6)The 100% check
Definition
inspect every part, not just a random sample. If not possible use N=2 method
Term
7) Continual improvement
Definition
by aimming for zero defects, there is always room for more quality improvements
Term
Workstation Layout:
Cellular Layout
Definition
1)one worker for all machines
2)flexible in # of workers, allows to respond to changes in production req.
3)single workers monitors all work entering and leaving, ensuring it remains constant, results in JIT flow
4)Workers work together to fix problems
Term
push system
Definition
work releases are scheduled
Term
pull system
"Kanban"
Definition
work releases are authorized
Term
workstation
Definition
a collection of one or more machines or manual stations that perform, essentially, identical functions
Term
process-oriented layouts
Definition
workstations are physically organized according to the operations they perform
Term
product-oriented layouts
Definition
workstations are organized in lines making specific products
Term
part
Definition
a piece of raw material, a component, a subassembly, or an assembly that is worked on at the workstations in the plant
Term
raw material
Definition
refers to parts purchased outside the plant
Term
components
Definition
individual pieces that are assembled into more complex products
Term
assemblies
Definition
or final assemblies, are fully assembled products or end items
Term
end item
Definition
a part that is sold directly to a customer, whether or not it is an assembly
Term
consumables
Definition
materials such as lubricants, bits, and chemicals that are used but do not become part of the product that is sold
Term
routing
Definition
describes the sequence of workstations passed through by a part
Term
customer order
Definition
a request from a customer for a particular part #, in a particular quantity, to be delivered on a particular date. aka: an order
Term
job
Definition
refers to a set of physical materials that traverses a routing, along with the associated logical information
Term
throughput (TH)
Definition
average output of a production process per unit time, or average quantity of good (non-defective) parts produced per unit time
Term
capacity
Definition
an upper limit on the (TH) of a production process
Term
raw material inventory (RMI)
Definition
the physical inputs at the start of a production process
Term
Finished goods inventory (FGI)
Definition
stock point at the end of a routing
Term
work in process (WIP)
Definition
inventory between the start and end points of a product routing
Term
inventory turns (turnover ratio)
Definition
commonly used measure of the efficiency with which inventory is used
Term
cycle time (CT)
Definition
average time from release of a job at the beginning of the routing until it reaches an inventory point at the end of the routing
Term
lead time
Definition
time alloted for production of a part on that routing or line
Term
fill rate
Definition
the fraction of orders that are filled from stock
Term
utilization
Definition
the fraction of time a workstation is not idle for lack of parts
Term
bottleneck rate (rb)
Definition
the rate of the workstation having the highest long-term utilization
Term
raw process time (To)
Definition
the sum of the long-term average process times of each workstation in the line
Term
critical WIP (Wo)
Definition
the WIP level for which a line with given values of rb and To but having no variability achieves max. throughpout (rb, that is) with min. cycle time (To)
Term
Variability
Definition
the quality of nonuniformity of a class of entities
Term
controllable variation
Definition
occurs as a direct result of decisions
Term
random variation
Definition
a consequence of events beyond our immediate control
Term
effective process time
Definition
the total time "seen" by a job at a station
Term
coefficient of variation (CV)
Definition
standard deviation divided by the mean (t)
Term
low (LV)
Definition
c < 0.75
Term
moderate (MV)
Definition
0.75 < c < 1.33
Term
high (HV)
Definition
c >= 1.33
Term
Causes of Variability
Definition
1)Natural variability
2)Random outages
3)Setups
4)Operator availability
5)Rework
Term
Natural Variability
Definition
includes minor fluctuations in process time due to differences in operators, machines, and material
Term
preempitive outages
Definition
breakdowns that occur whether or not we want themn to. ie, power outages, operators being called away on emergencies, and running out of consumables
Term
nonpreemptive outages
Definition
represent downtimes that will inevitably occur but for which we have some control as to exactly when. ie, when a tool starts to become dull
Term
recycle outages
Definition
rework due to quality problems. Decreases capacity and increases variability of teh effective process time. Equivalent to nonpreemptive outages
Term
"Good" variability
Definition
adding variability may increase revenue by more than the additional cost
Term
"Bad" variability
Definition
an undesired side effect of a poor operating policy
Term
objective
Definition
what do you want to do
Term
controls
Definition
what can you manipulate to make the objective happen
Term
measures
Definition
how do you evaluate your performance
Term
Efficiency Values
Definition
way to characterize performance measures. For each efficiency, 1-perfect performance has a value of 1. 2-worst possilbe performance has value of 0.
Term
Throughput Efficiency
Definition
rate of parts produced by the line that are used.
if TH >= D, then TH eff. is equal to 1.
Any shortage, not able to meet demand, then TH eff. < 1
Term
Utilization Efficiency
Definition
fraction of time a station is busy.
Ideally all workstations at 100% utilization
Term
Inventory Efficiency
Definition
Includes WIP, FGI, and RMI
Ideally RMI=FGI=0 and critical WIP
Term
Cycle Time Efficiency
Definition
Ratio of best possible CT to actual CT.
Independent measure because of FGI and RMI
Term
Lead Time Efficiency
Definition
Time quoted to the customer.
Ideally lead time is zero:1-possible in make-to-stock. 2-as close to raw processing time as possible for make-to-order
Term
Customer Service Efficiency
Definition
Fraction of demands that are satisfied on time.
Make-to-stock = fraction of demand filled from stock (not backordered).
Make-to-order = fraction of orders filled within lead time
Term
Quality Efficiency
Definition
Complex interaction of product, process, and customer.
For operational purposes, EQ= fraction of jobs that go through the line with no defects on first pass
Term
Variability Law
Definition
increasing variability always degrades the performance of the production system, at least one eff. is degraded.
3 general dimensions effected are: 1-inventory, 2- capacity, 3-time
Term
Variability Buffering Law
Definition
Variability in a production system will be buffered by some combination of: Inventory, capacity, time.
The appropriate buffering strategy depends on the production enviroment and business strategy
Term
Buffering Flexability
Definition
flexibiliy reduces the amount of variability buffering required in a production system
Term
Conservation of material
Definition
output had to be greater than input
Term
Capacity Law
Definition
In steady state, all plants will release work at an average rate that is strictly less than the average capacity
Term
Utilization Law
Definition
if a station increases utilization without making any other changes, average WIP and cycle time will increase in a highly nonlinear fashion
Term
Variability Placement
Definition
In a line where releases are independent of completions (push system), variability early in routing increases cycle time more than equivalent variability later in the routing
Term
Batching
Definition
causes variability
Term
Serial batch
Definition
each part in batch processed one at a time
Term
Parallel batch
Definition
entire batch processed at once
Term
Transfer batches
Definition
parts are transferre3d in batches; tradeoff between waiting for a batch to form and material handling
Term
Process Batching Law
Definition
In stations with batch operations or significant changeover times. 1-the min. process batch size that yields a stable system may be greater than one. 2-as process batch size becomes large, cycle time grows proportionally with batch size. 3-cycle time at the station wil be min. for some process batch size, which may be greater than one.
Term
Move Batching Law
Definition
Cycle times over a segment of a routing are roughly proportional to the transfer batch sizes used over that segment, provided there is no waiting for the conveyance device. Cellular manufacturing
Term
Cycle Time is made up of...
Definition
1-Move time
2-Queue time
3-Setup time
4-Process time
5-Wait-to-batch time
6-Wati-to-batch time
7-Wait-to-match time
Term
Assembly Operations Law
Definition
The performance of an assembly station is degraded by increasing any of the following:
1-# of components being assembled
2-Variability of component arrivals
3-Lack of coordination between component arrivals
Term
Line Cycle Time
Definition
The average cycle time in a line is equal to the sum of the cycle times at the individual stations less any time that overlaps 2 or more stations
Term
Lot splitting
Definition
1-Keep process batches large and transfer batches small
2-Useful where there are long setup times but short processing times
Term
Lead Time Law
Definition
The manufacturing lead time for a routing that yields a given service level is an increasing function of both the mean and standard deviation of the cycle time of the routing
Term
Lead time law (in own words)
Definition
keeping service level constant, raising your CT or standard dev. of CT, you will be increasing your lead time
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