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What is Logistics?

I made short presentation about what is logistics and how does it affect on your business and it’s finances.

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Production Control

As I wrote earlier the magic of pull is based on the WIP regulation. In order to have optimal production we should set the correct WIP level. If it’s too close to critical WIP, throughput will suffer. If it’s too big, cycle time increases.

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Push or Pull Production?

Earlier I wrote about MRP as an push production and JIT as an pull production. In reality they seldom are this black and white but it is some kind of mix of these push and pull production.

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Reducing Cycle Time

Production time at workstation can be divided into following categories: Transfer time Queue time Setup time Process time Wait-to-bath time Wait-in-batch time Wait-to-match time

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Flow laws

Regarding to variability and its control we will go through some “laws” that will affect production flow.

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Variation in Practice – Part 2

Lean is based on the thought that excess work (muda) needs to be removed. So we can lead this into the variation removing. We must still remember that variation can also be good if it’s our strategic decision.

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Variation in Practice – Part 1

Variability can be controlled with different kind of combinations. Example if machine receives its raw material from multiple sources the variability of this combined feed will be close to value CV = 1. Despite if sources are LV or HV machines, their summarized feed tend to be medium variable.

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Is it crucial to control WIP?

We can quite easily compute the optimal amount of WIP for each production. At the same time the WIP in use notifies the performance of our production when compared to the optimal, worst-case and practical worst-case.

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What is LEAN?

Term LEAN appeared for the first time in 1988 or 1990 depending on sources. But actually LEAN was only new term for JIT philosophy and afterthought it was just simplier and prettier form of JIT. Next book about Toyota and LEAN didn’t appear until 1996.