The manager of Quality Parts Company is aiming to do precisely that by planning to appoint three inspectors to clean up the quality problem. She also contemplates adding a setting up a rework line to speed repairs. This is a disastrous idea that piles up the cost element of manufacturing. It also compromises on quality in the first place because when a new line for rework is added to the works the attention of the workers would be slanted more towards rework instead of a perfect first attempt manufacture.
In forecasting demand, two methods can be applied- the push effect got as a result of demand forecast or the "pull" effect as Kanban exemplifies. The actual demand of the consumers is calibrated and production done accordingly. Kanban best suits a condition when the supply time is prolonged and the supposed demand is rather difficult to predict; the production then has to be done in response to the consumer's demand or 'pull'.
Adoption of this methodology will cut down on the inventory costs because goods are procured as and when there is a pull by the consumer. The production facility becomes Just in time. The production process starts at the instance of a product being sent out of the factory. So, the process is upstream.
Quality parts system makes basic errors in maintaining quality. ...
The production process starts at the instance of a product being sent out of the factory. So, the process is upstream.
Quality parts system makes basic errors in maintaining quality. As pointed earlier, the repair work or a separate rework line defeats the concept of quality management especially six sigma. In total quality management minimization of defects at the production stage is given more importance.
The second most important thing is the manager's proposed idea of keeping "skids filled". This idea is in total contrast to the Just in time attainment of raw materials as professed in the kanban theory.
(Chase-Jacobs-Aquilano, "Operations Management for Competitive Advantage, 2005, Operations_Management_Ch12.doc)
Automatically ordering of inventory will not take into account the goods already manufactured, dispatched, in production and demand for future products. Getting and storing inventory will not only add to the cost of storage but defeats the logic of upstream production.
High scrap rate: As evinced in the example, the scrap rate is nearly 10% that means 1 in 10 items produced are scrapped. This is an awesome waste considering the manpower and money involved.
The high rise shelving inside the factory does not allow for grouping of similar tasks and interaction among teams of related work. The chain of uninterrupted production is disrupted and at times even broken.
Grouping tasks: The bright thing to do incase of assembly line setup of manufacturing goods is to have people, procedures and equipments needed for similar tasks to be kept at proximity. It is a wonderful idea to do would be to place teams performing successive operation close to each other or near each other. This would reduce the physical