- The level of productive output of an organization in a specified period of time
- A layer of capacity above that which is absolutely required to meetknown demand, providing the firm with the ability to handle occasional problems andenabling them to handle special requests.
- inventory whose demand is determined by the production schedulefor finished products. Dependent demand items usually are components and rawmaterials.
- Inventory whose demand is dictated by the marketplace.
Approaches to smoothing demand for services-Aggregate demand
- The total demand for all products or services
Constraints & non- constraints
- Anything that inhibits a system’s progress towards itsgoal
- A buffer of inventory that will keep a resource busy for a specifiedamount of time
- A time buffer place immediately prior to constraint
A period of time during a regular work cycle when a worker is not active because of waiting for materials or instruction
Work center utilization & activation-Principles & goals of Lean Manufacturing-
Lean Manufacturing is a productionstrategy based upon the identification and reduction of non value- added activities &other forms of waste. To get more done with less by: using less direct and support labor,using less cycle time, using less materials, using less space, avoiding over- production
Types, or categories, of “waste
”- Those elements of production that add time, effort, &cost, but no value Examples: Overproduction (more, sooner, or faster than required),Movement of materials, Extra inventory at any stage, Inefficient production; downtime,Waiting (for materials, parts, people, equip., etc), Motion (wasted steps, unnecessarywalking, etc), Defective Production
Value-added vs non value-added activities-
The value of a product or service is definedsolely by the customer, Value- adding activities transform the product closer to what thecustomer wants, & is willing to pay for, Non value- adding activities do not createcustomer value, and are therefore considered “waste” or “wasteful”