During the conversation, Joana asks him several questions to analyze his compass situation. The conversation leads ultimately to the question, “What is the goal of any business? ” After rethinking his conversation, Alex realizes that the goal of any business is to make money. Furthermore, fifth goal is to make money any action toward this goal is consider productive and any action not moving towards the goal is nonproductive, Alex unsure of such a simple answer decides to contact Joana to continue the search for more answers.
Measurements: Once Alex contacts Joana they define the following measurements to define the success of any land’s production: 1. Throughout – rate that the system is used to generate money through sales. This measurement would consist of what a product would be worth when sold at market value after deducting operational expense and inventory. 2. Inventory = all the money invested in purchasing items that will be sold. This could include the remains of their machines after being used toward the investment, 3, Operational expense all the money used to turn inventory into throughput.
This would include such items as depreciation of a machine, lubricating oil, scraps, etc. Balancing a Production Line: Joana explains to Alex hat a plant that is continuously productive in considered inefficient. He further explains that continuous production will result in high absenteeism, poor quality and employee turnover. Based on this, he would need to reduce operational expense and inventory to improve throughput to Jennifer Purify April 30, 2001 Page 2 of 3 demonstrate a balanced line Of production.
Joana leaves him to ponder the understanding of two things: what are the dependent events and statistical fluctuations in his plant. Bottlenecks During a hiking trip with Ale’s son, he produces a game for a few of the kids to demonstrate an ideal balance nine of production. He does this by setting up dependents and uses a die to measure the statistical fluctuations. At the end of the game, he concluded that the bottlenecks speed of production is what determines the speed of the other dependents.
Hence, inventory moves very slow because of statistical fluctuations. This would eventually result in huge bottlenecks over time. In the end, this is where Alex begins his search inside the plant, upon arriving back at work, him and the crew begin their search tort the bottlenecks. They identify one of the robots, NC-II, and the heat treatment area as the source of the adolescents. Once identified, they begin their search for solving them.
These are the steps they proceeded with to solve the bottleneck issue: NC-ICC: ; Have two employees dedicated to the setup of the robot -? this will help ensure that the machine will be continuously running. ; Additionally, these employees take their breaks while the machine is working since they are only needed for setup of the next batch. ; Continue use Of the older machines that the NC-ICC was supposed to replace. ; Do not produce parts for inventor/ -? produce only vat is in emend (via an order from a customer). Produce smaller batches to increase productivity for the whole process. Heat Treatment: ; Perform quality control testing before going into the bottleneck. ; Hire outside vendors to assist in heat treat. ; Produce smaller batches to increase productivity for the whole process. ; Combine batches that require the same temperature. With all of these changes however, one thing remains constant: an hour lost tat bottleneck is an hour lost at the whole system. Therefore, it is extremely important to keep the bottleneck moving at all times,