BU247 Chapter Notes - Chapter 7: Statistical Process Control, Quality Engineering, Kaizen
Document Summary
Chapter 7 hardcover (chapter 6 softcover) measuring and managing process performance. Theory of constraints you can increase operaing income by analyzing the processes and managing the botlenecks that slow your producion: botleneck the spot where the producion is the slowest in your process. It costs a lot of money to inance inventory buildup because you actually get paid when the customer receives the inished product and they usually have some ime to pay it of. Process layout all similar funcions and equipment are grouped together. Product layout large producion of the same product. Group technology grouping of technology into cells where each cell focuses on a speciic task: usually a u shape, groups of similar products are close together. Toc relies on: throughput contribuion = revenue direct materials, investments = material costs in raw materials, wip, inished prod inventory, operaing costs = all other costs. Problem with batch processing: you store more inventory which raises costs and slows down producion.
