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Buyer-Supplier Relationships in the Lean Enterprise—Contracting
Published in Darren Dolcemascolo, Improving the Extended Value Stream, 2019
Scheduling with MRP. We will begin with an MRP-based system. Let's suppose we have a factory that molds plastic components and assembles them into products. The products go to a finished goods inventory warehouse until they are shipped to a customer. They have injection-molding machines and assembly cells. Using MRP to schedule, the injection-moulding machines receive a weekly schedule, and the assembly cells each receive a weekly schedule. The schedules are based on forecasted demand from customers. Customers actually place orders, and the orders are filled in shipping. In this scenario, there is no relationship between production in each of the manufacturing areas. Thus, there is no control over the amount of inventory that accumulates. The result is that the warehouse has too much of what is not needed and not enough of what is needed.
Integrating Consumer Advance Demand Data in Smart Grid Energy Supply Chain
Published in David Bakken, Krzysztof Iniewski, Smart Grids, 2017
Tongdan Jin, Chongqing Kang, Heping Chen
Figure 11.1 depicts a typical manufacturing supply chain system comprising customer orders, production, inventory, and delivery process. Obviously, the supply chain is driven or pulled by customers’ advance demand information. Upon receipt of customer orders, the manufacturer starts to produce the necessary goods to meet the demand. The inventory is widely used in manufacturing industries for temporarily storing finished goods before they are shipped to the retailers or end customers.
Identifying and Removing Waste
Published in Collin McLoughlin, Toshihiko Miura, Nakamuro Junpei, Antonio Mendez, William Homel, True Kaizen, 2017
Collin McLoughlin, Toshihiko Miura
They created a flow between different processes, and their production lines were improved through Kaizen in order to accommodate a small-lot production system. As a result, the number of transportation carts between steps decreased over a 2-year span from 1200 carts to only 400. Their entire production system has since shifted to a complete make-to-customer-order production system, reducing their finished goods lead time from 3.5 months to 10 days4 (Figure 7.5).
Overall material usage effectiveness (OME): a structured indicator to measure the effective material usage within manufacturing processes
Published in Production Planning & Control, 2018
M. Braglia, D. Castellano, M. Frosolini, M. Gallo
The production process consists of several stages performed on automated lines that work on three shifts per day. In each shift, two operators carry out some preparatory, setup and quality control activities. Once the production order has been issued, the necessary materials are supplied to the line from the raw material warehouse. As the production process is completed, the product is appropriately packed, and is then taken to the finished goods warehouse, where it waits to be shipped to customers.
Order release planning with predictive lead times: a machine learning approach
Published in International Journal of Production Research, 2021
Manuel Schneckenreither, Stefan Haeussler, Christoph Gerhold
Manufacturing planning and control (MPC) systems are designed to efficiently manage the flow of materials and goods, and the utilisation of people, equipment and capacity. In order to handle the complexity of manufacturing firms, MPC systems, especially for discrete manufacturing, are often hierarchically structured into two levels: a top level and a base level. The top level coordinates the material flow over the entire logistic chain or manufacturing process and the base level is primarily responsible for detailed scheduling (Bertrand, Wortmann, and Wijngaard 1990; Vollmann, Berry, and Whybark 2005). These two planning levels are interrelated by instructions set by the top level (e.g. which orders to be released) and feedback from the base level. Targets set by the top level have to be feasible in terms of the resource constraints at the base level. This is done by employing an aggregated (i.e. implicit) model of the base level within the top level model (Schneeweiss 1995, 2003; de Kok and Fransoo 2003). Therefore, the top level has to anticipate the future states of the base level such as inventory levels, total available capacity and flow times. The interface between the top and the base level is the order release decision, which is defined as the earliest possible start date of the production of this order, it is the point at which material is made available to the production system and control over its progress passes to the base level. Thus, the order release quantity determines the workload of the shop floor. The timing of the order release decision is generally based on a planned lead time which makes it one of the key modelling parameters for the top level within hierarchical MPC models. The lead time refers to the planned time that will elapse between the release of an order and its arrival in the finished goods inventory. In contrast to that, the observable actual time an order needs through the production system, the flow time (or cycle time), is commonly used as a performance measure.
Implementation of value stream mapping to reduce waste in a textile products industry
Published in Cogent Engineering, 2020
Bambang Suhardi, Maudiena Hermas Putri K.S, Wakhid Ahmad Jauhari
The finished goods warehouse is a warehouse prepared by the company to store finished goods or the final product. The finished products which have been packaged in the packing department are then stored in the finished goods warehouse. This aims to separate products that are ready to be sent to consumers (buyers) to minimize the possibility of damage or defects.