Creating Mixed Model Value Streams: Practical Lean Techniques for Building to Demand, Second Edition by Duggan Kevin J

Author:Duggan, Kevin J. [Duggan, Kevin J.]
Language: eng
Format: epub
Publisher: Taylor and Francis CRC ebook account
Published: 2012-09-13T22:00:00+00:00

Option 3: Level the Schedule with a Supermarket and Build to Ship with FIFO

In this option we place commodity items (those that are steady sellers) in a finished-goods supermarket. We use this as an overflow buffer or safety stock. Labor remains constant and production control levels the orders based on work content. When we can’t meet the demand for today due to the variety of orders and work content needed, we pull from the commodity items stored in the supermarket and build what we can to customer order. On days when demand is down we build to replenish the supermarket store.

This option works well when handling a large variety of products. It provides a level schedule at the pacemaker, which allows us to use the same number of operators each day. By placing only commodity items in the supermarket, we decrease the needed inventory.

In this option, we still need to know what the customer wants at least a few days ahead of lead time in order to provide the leveled schedule, and the pacemaker still pulses at different speeds. We will not have consistent daily output from the pacemaker. If our tester also runs at different speeds, this could make for lengthy FIFO lanes. Is there a way to respond more quickly when the customer wants his order tomorrow?

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