FARE 3310 Lecture Notes - Lecture 7: Lead Time, Kanban, Material Requirements Planning

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 3310
• Professor: Getu Hailu

Document Summary

Workers cannot be e cient if their workplaces are messy and disorganized. Variability is any deviation from the optimum process that delivers perfect product on time, every time. Among the many sources of variability are: incomplete or inaccurate drawings or speci cations, poor production processes resulting in incorrect quantities, late, or non-conforming units, unknown customer demands. Both jit and inventory reduction are e ective tools for identifying causes of variability. 27manufacturing cycle time is the time between the arrival of raw materials and the shipping of nished products. Some useful e ective inventory tactics are: use a pull system to move inventory, reduce lot sizes, develop just-in-time delivery systems with suppliers, deliver directly to point of use, perform to schedule, reduce setup time, use group technology. From chapter 12, we know that the production order quantity model takes the form: (cid:2)