PRODUCTION Lean manufacturing and JIT ‘Kanban’ ~ using 4 ‘pull® system where production responds quickly to real, observed demand. This contrasts with & push’ system where production is based fon forecasts of demand Cwhich may not bbe accurate) Continuous process: work in progress without stopping Mass process: high volume, low variety Batch process: groups of products of the same type move through the process Job production: low volume, opportunities for customization Project Cas in ‘project jement >: highly customized products, long timescale Flexible mannfacturing: designing machines to do multiple tasks; reprogramming machine tools while they are running g Mass customization: tailoring products Yo meet the needs of « large number i ‘ % $ Guality can be seen from a manufacturing of 4 customer point of view Perfect quality comes at 4 price: is it justified? Quality standards: internal technical ‘Standards, ISO 9000 Family, Six Sigua Checks on quality: what to check for? which stages in the production process? frequency? every product or just 4 sample 2 Use of benchmarking (= comparison with best practice in. the industry? 45 4 tool for improvement wwww.vorne.com (> Solutions > Learning Center) oF individual customers “Forecasting demand fluctuations Seasonality, ete Maximizing capacity utilization (> making the best use of the capacity you have) Monitoring equipment: set-up and change-over time / causes of breakdowns / Speed losses / quality losses Adjusting capacity: Overtime / using part-time staff; subcontracting parts of the operation; changing demand through price; developing products with @ different seasonal demand / Advantages of storing materials Buy the best when it is available Respond quickly and flexibly ‘to changes in demand Insure against unexpected problems Buy in bulk to reduce costs J disadvantages of storing materials Ties Up working capital Has to be stored, insured and handled Can deteriorate or be damaged Perpetual inventory system: soPtware knows what was sold Cand when and where); when inventory falls to « predefined ‘re-order level’ there is « trigger to order more stock woww.tutor2unet (> Revision Notes/Production & Ops)