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	Performance Benchmarking Part 4 of 5
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	PRODUCT DESIGN FOR REPETITIVE Traditional product design approaches emphasize common components, modules, and subassemblies, which are made in large quantities and placed into stock to be ready to be used in different higher-level as­semblies. In contrast, designing products for repetitive manufacturing focuses on moving the initial raw materials nonstop through the entire manufacturing process until they have been completely transformed into the final finished goods. JIT, flow, or repetitive environments uti­lize a flattened bill of materials (BOM) structure in planning and in­ventory accounting. Flattening BOM eliminates moving semifinished materials in and out of stockrooms, thereby reducing handling, paper­work, and lead times. 1 No manufacturing involvement in product design. 10+ level BOM, paper drawings in drawers in Engineering, so old they crumble when touched. 2 A little manufacturing involvement in product design. Products designed to be built in stages, with semifinished inventory storage at each stage. 6+ level BOM, bills of materials are computerized and can be accessed by authorized employees. 3 Some manufacturing involvement in product design, to start mini­mizing intermediate levels. 4+ level BOM, starting to convert MRP-oriented, multilevel BOMs by flattening them to reflect how parts are manufactured, or by changing intermediate levels to "phantoms." 4 Extensive manufacturing involvement in product design to mini­mize BOM levels. Two or three-level BOM, regular audits of billof material accuracy, change procedures are in place and being used. BOMs may contain "phantoms." 5 Manufacturing and suppliers heavily involved in design, design to support flow not work orders, options and features added at the very end. One-level BOM; completely accurate, updated constantly, on computer, and available on manufacturing floor. BOMs may contain "phantoms." ROUTINGS—PAY POINTS Routings contain operation instructions, which tell the operator how to perform the specific step of the manufacturing process, and -which are essential for job shop/discrete plants. They should be replaced by cell or assembly line methodologies in a repetitive operation, and the num­ber of operation steps should be minimal. There should be only one pay point (at the end), unless a high-value serial number component needs to be tracked in the middle of the operation. Pay points are used for backflushing. 1 6+ operation steps/routing; no pay points 2 4+ operation steps/routing; no pay points 3 3+ operation steps/routing; 3+ pay points 4 2 operation steps/routing; 2 pay points 5 1 operation step/routing; 1 pay point SCHEDULE ATTAINMENT While meeting schedules is important for discrete manufacturers, for repetitive manufacturers it is absolutely essential, because repetitive links operations and eliminates inventory. Thus, if one cell or work area fails to meet its schedule, downstream work areas might run out of work, and a customer shipment will probably be late. 1 90 percent on-time completion of work at all work cells, measured by shift. 2 95 percent on-time completion of work at all work cells, measured by shift. 3 98 percent on-time completion of work at all work cells, measured by shift. 4 95 percent on-time completion of work at all work cells, measured hourly. 5 98 percent on-time completion of work at all work cells, measured hourly. To Be Continued STAY CONNECTED To stay current on Lean Management Basics and Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you our PowerPoint presentation "How to Survive in an Entirely New Economy."  All at no cost of course.  First Name: Your E-Mail:  Your personal information will never  be disclosed to any third party. privacy policy Here's what one of our 13,000 plus subscribers wrote about the MBBP Newsletter: "Great manufacturing articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."                Kerry B. Stephenson. President. KALCO Lighting, LLC "Back to Basics" Training for anyone ... anywhere ... anytime Business Basics, LLC 6003 Dassia Way, Oceanside, CA 92056 West Coast: 760-945-5596  © 2001-2009 Business Basics, LLC