Throughput

Inventory Energy = Operating expense

Outbound buffer

Outbound buffer

E
P C
Kanban post

E
P C

C P

Preceding Process

Kanban post

Process

F E

F E

F E

F E E

Inbound buffer

Inbound buffer

115-145 Release 175 min before 145-175 30 min

55-115 60 min

Product P Batch = 20
20-55 0-20

A 40
30 min Drum Buffer

B 20

Assembly 35
35 min Assembly Buffer 10 min 55-65 Shipping Buffer

Release 105 min before

C 30
40 min 65-105

20 min

175-160 160-145 175 min before

130 115 30 min

130-100 100-70 60 min

Product P Batch = 10
85-67 65-47 47 27

A 40
30 min Drum Buffer

B 20

Assembly 35
35 min Assembly Buffer 10 min 85 65 Shipping Buffer

Release 105 min before

C 30
40 min 105-95 95-75

20 min

150-135 135-120 150 min before

105 90 30 min

105-75 75-45 60 min

Product P Batch = 20
Different start time
60-42 40-22 22 2

A 40
30 min Drum Buffer

B 20

Assembly 35
35 min Assembly Buffer 10 min 60 40 Shipping Buffer

Release 90 min before

C 30
40 min 90-70 70-50

20 min

160-210 Release 175 min before Release 210 min before 145-175

130-160 115-145
30 min

55-115 70-130 60 min, 60 min

Products P,Q Batch = 20, 25

20-55 0-20

A
40, 30
30 min 50 min Drum Buffer

B
20, 25

Assembly
35, 30
35 min, 50 min Assembly Buffer 10 min 55-65 70-80 20-70 Shipping Buffer

Release 105 min before

C
30, 40

Release 118 min before 40 min, 38 min 65-105 80-118

20 min
0-20

The times overlap. A machine can do only one Job at a time

Q is done first and then P

175-225
Release 175 min before Release 225 min before 145-175

175-145 115-145
30 min

Overlap
55-115 85-145 60 min, 60 min

Products P,Q Batch = 20, 25

20-55 0-20

A
40, 30
30 min 50 min Drum Buffer

B
20, 25

Assembly
35, 30
35 min, 50 min Assembly Buffer 10 min 55-65 70-80 20-70 Shipping Buffer

Release 105 min before

C
30, 40

Release 118 min before 40 min, 38 min 65-105 80-118

20 min
0-20

Q is done first and then P

205-255
Release 175 min before 145-175

175-205 115-145
30 min

Products P,Q 115-175 55-115 60 min, 60 min Batch = 20, 25

B
20, 25
20-55 0-20

A
40, 30
Drum Buffer

Release 255 min before 30 min 50 min Release 105 min before

Assembly
35, 30
35 min, 50 min Assembly Buffer 10 min 55-65 115-105 105-55 Shipping Buffer

C
30, 40

Release 153 min before 40 min, 38 min 65-105 115-153

20 min
0-20

Rabbit chasing
Times = 12, 8, 10, 9, 6

12

10

Rabbit chasing
Computation for 2 operators
12 8 10 9 6

O1 O2 O1 O2

12 24 57 69

20 32 65 77

30 42 75 87

39 51 84 96

45 57 90 102

Time between successive pieces are 12 and 23. The average time is (12+23)/2 = 22.5

Rabbit chasing
Computation for 3 operators
12 8 10 9 6

O1 O2 O3 O1 O2

12 24 36 57 69

20 32 44 65 77

30 42 54 75 87

39 51 63 84 96

45 57 69 90 102

Three pieces come out every 45 units. The average time is 45/3 = 15

Rabbit chasing
Computation for 4 operators
12
O1 O2 O3 O4 O1 O2 12 24 36 48 60 72

8
20 32 44 56 68 80

10
30 42 54 66 78 90

9
39 51 63 75 87 99

6
45 57 69 81 93 105

Four pieces come out every 48 units. The average time is 48/4 = 12 (bottleneck)

CONWIP
Consider a cell making 4 parts (A to D). The data is given in table. Find the backlog items and indicate when to start production?
Item Batch size 1 2 3 4 50 20 100 50 Target inventory 100 80 200 150 Units in Batches inventory in process 60 1 40 80 60 2 1 1 Time per batch (hours) 3.3 2.4 1 2

Solution
Target inventory = 2 x 3.3 + 4 x 2.4 + 2 x 1 + 3 x 2 = 6.6 (A) + 9.6 (B) + 2 (C) + 6 (D) = 24.2 hours. The total permissible inventory is 24 hours and if inventory reduces to below 24 hours, we initiate production. Total units in inventory = 60x3.3/50 + 40 x 2.4/20 + 80/200 + 70/150 = 3.96 + 4.8 + 0.8 + 2.4 = 11.96 Batches in process = 3.3 + 4.8 + 1 + 2 = 11.1 Total inventory = 23.06 Since the total inventory is less than the target, we can initiate production.

Solution
We calculate the inventory position of each of the items: Item A: Inventory = 3.96 + 3.3 = 7.26 and target = 6.6 Item B: Inventory = 4.8+ 4.8 = 9.6 and target = 9.6 Item C: Inventory = .8 + 1 = 1.8 and target = 2 Item D: Inventory = 2.4 + 2 = 4.4 and target = 6

We can initiate production of C and D and can begin with D because the gap between existing and target inventories is the higher. We can also choose the item based on other dispatching rules such as SPT, minimum changeover, cycle etc.