What impact does setup reduction have on both inventory management and lean operations?
Machine setup time refers to the period of time that is required to prepare a machine for its next run after it has completed producing the last part of the previous run. So why should you focus on reducing machine setup of your manufacturing process instead of focusing on reducing the overall run time? Although decreasing run times reduces overall lead times, shortened machine setup times will reduce your organization’s manufacturing costs as well as increase your flexibility to meet customer demands.
Typically, there are four main steps to the machine setup process: preparation, exchanging, positioning, and gauging. The longest stage of the machine setup process before your machine can begin to make you revenue is gauging. Although you already did calibration, you find that you need to recalibrate, incorrect materials being used, your tools are missing or broken, etc. After a dozen test runs and adjustments, you finally feel your machine is good to go and so begins your machine’s run time. This whole setup process has left you with immense amounts of downtime that can’t be recovered, even if you cut your run time in half. The following are additional benefits of setup reduction:
Shorter lead time and increased capacity
Capital equipment purchases avoided or delayed
Better quality and more consistent processes
Lower manufacturing costs and improved cash flow
Less inventory
Increased flexibility to meet client demands
Better utilization of your workforce
Less process variability
Wouldn’t it be nice to order parts for your factory and have them show up on the day they’re needed for a build? Well, with Just in Time (JIT) inventory, you can set up a delivery schedule with your supplier to ensure you get your class C components and fasteners on time, not early or late. This inventory management strategy helps original equipment manufacturers (OEMs) save money on the purchasing and management of inventory by delivering the goods when they are needed. This way, components are not collecting dust and taking up shelf space when they’re not needed, and you still have access to the quantities you need to respond to changes in production cycles.
Inventory Management Review reported that Dell uses a JIT inventory management program in which no raw materials are kept on-site until the items are required for a build. The JIT model allows the company to quickly fulfill orders, but also eliminates the need for inventory storage, which reduces the overhead costs. There is also a financial aspect of storing inventory, as this sacrifices space that could be used for other purposes and requires energy for lighting and temperature control. While these may seem like minor issues, the expenses can add up over time.
JIT inventory management requires a bit of planning, which is why working with a reliable supplier who provides vendor managed inventory (VMI) services and is experienced in JIT practices can help an OEM set up and maintain this structure. This means you’ll also have to order parts days or weeks before they’re needed, but with proper planning, this will result in the shipment arriving around when the parts are needed on the factory floor. To ensure there is no downtime due to components not being available, it’s equally as important to consider the lifespan and usage of the various components being ordered. The information can be used to help determine the best time to place the next order.
What impact does setup reduction have on both inventory management and lean operations?
Hi i have to write thesis type paper 5-6 pages for theory and best practice of lean supply chain management on following topics. 1. Lean Layout ( its theory and best practice) 1.1 Manufacturing Cells 2. Inventory and setup time reduction (Theory and best practice) 3. Small batch Scheduling( theory- what exactly it is? and best practice Dell example or may be different) 4. Continuous Improvement (theory and give brief example of best practice ) 5. The Impact of Lean...
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