Business Basics
Home Page


Who is Bill Gaw?
And why should we
listen to him?

 


lean manufacturing principles and techniques training

A training program that gains employee understanding and commitment
Lean Manufacturing Training Program

If you want to get to the top of the latter, forward this Web page to your CEO/HR
Mfg. Mgmt. Development Program

Shop Floor Control - Part 4 of 5

Part 1  Part 2   Part 3  Part 4  Part 5



Get Bill Gaw's Lean Manufacturing Book
$15.00 Click Here

 Book: "Back to Basics"

 


privacy policy

987

760-945-5596

Other Training Options:

Lean Sigma Assessment

Lean Six Sigma Implementation

Lean Six Sigma, Certification Program

Lean Six Sigma Forum

Lean Manufacturing Basics

Lean Manufacturing Assessment

Lean Manufacturing Transformation Training

Shop Floor Control

Lean Manufacturing Principles and Techniques

Lean Manufacturing Simulation Game

Lean Manufacturing Certification Program

Lean Manufacturing
Seminars

Kaizen Management Training

Lean Manufacturing Problems and Solutions

Lean Manufacturing Seminar-in-a-Box

Supply Chain Management Training Program

Strategic Planning Training Program

Thinking-Outside-the- Box Workshop

Lean Management PowerPoint Training Modules

Lean Manufacturing
Articles

Lean Manufacturing
Consulting

 

A SCHEDULING MODEL NEEDS TO BE DEVELOPED

 

The ABC classification will then be used to build a model for manufacturing and purchasing. The result will be sound purchasing, manufactur­ing, and inventory strategies—all synchronized.

 

A form of mixed-model sched­uling will, then, become your company's purchasing and shop loading strategy. (See Figure 4.) It is imperative that each day or week a certain mix of product is introduced to the factory floor. This is a modified version of mixed-model scheduling. As its name implies, its purpose is to stabilize the factory by defining a run order launching mix. For example, each mix MIGHT include:

a.   Daily line rate for each production area.

b.   Daily labor hours rate.

c.   Certain mix of A, B, and C items to control the num­
ber of setups and/or line start-ups.

d.   Certain mix of product families by forecast percent
to assure high customer service to various product
lines or market segments.
(A-D are examples of business rules.)

These strategies must be rethought, at least quarterly, to allow for seasonality or changing marketplace conditions.

 

This modified scheduling process may look confus­ing and difficult—IT IS! But every effort must be made to bring a sense of flow and stability to the entire sup­ply chain. Formal education will be needed to fully un­derstand this concept.

SAFETY STOCK PLANNING

 

Most companies have safety stock; few have safety-stock policies. A formal safety-stock philosophy is needed for all major components and product lines. Safety stock should be primarily established based on customer de­mand instability as well as purchasing and manufactur­ing reliability and response times.

An example of safety stock business rules follow:

     A items: 2 weeks safety stock

     B items: 4-6 weeks safety stock

     C items: 10 plus weeks safety stock

With this logic, a company's safety stock would eas­ily turn 15 to 20 times per year.

 

Remember: C items are only a small portion of your dollar inventory. If you manufacture a 20-week supply of C items, your average C items inventory is approxi­mately 10 weeks. A 10-week supply of an item, which only represents 5 percent of your dollars, has almost no impact on inventory turns or investment.

 

In addition to the typical math­ematical approaches to setting safety stock, the following factors should be considered when setting level of safety stock (to manually adjust the quantity):

      Inventory class (ABC) of parent
items

      Criticality of end use (will this shut
down a customer job site)

      Location of customer (distance)

      Ease of manufacturing to produce

      Warehouse space

      Safety/hazardous material

      Design of the product life

      Spare parts usage (warranty work or
repair).

Continued

Part 1  Part 2   Part 3  Part 4  Part 5


Bill Gaw's Lean Manufacturing & Six Sigma Bulletin (LMSSB)

To stay current on Lean Manufacturing and Six Sigma knowledge and implementation know-how, subscribe to Bill Gaw's Lean Manufacturing Six Sigma Bulletin and you'll receive his weekly solutions to the reasons why 80% of lean initiatives fail to meet expectations. And as a bonus we'll send you a download copy of our eBook, "Thinking-Outside-the-Box.". (All at no cost of course.).

 Simply fill in your first name and email address and click on the bar below:

        Your personal information will never be disclosed to any third party.

First Name:
Your E-Mail:

Here's what one of our 15,000 plus subscribers wrote about the LMSS Bulletin:

"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


Knowledge and implementation know-how you'll not find in the
books at Amazon.com... neither in the APICS Package 
nor the Harvard Business School Press.  

Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596 

© 2000-2013 Business Basics, LLC