University:
Acadia University
Course:
BUSI 2013 | Managerial Accounting
Academic year:

2024
Views:

113

Pages:

4
Author:

Abegail C.

LEAN MANUFACTURING An approach designed to eliminate waste & maximize customer value. Delivering the right product, in the right quantity, with the right quality (zero-defect), at the exact time the customer needs it, and at the lowest possible cost.1 Making it SEXY!!! Value Stream: Made up of all activities (both value-added & non) required to bring a product group or service from its starting point to a finished product. Like a flow diagram. Ex. 1 Process Performance Given: produce a batch of 10 units. Matching: WT=7mins, MPWT=15mins Casting: WT=4mins, MPWT=10mins Painting: WT=3mins, MPWT=4mins Finishing: WT=3mins WT: Wait time MPWT: Move & Pre-wait time Value-added process time Traditional Lean Manufacturing: Batch per batch processing, different warehouses. Cellular Manufacturing: Sunod-sunod; don't need to wait for the whole batch. Making your fully process SEXY Activities: Matching (10 x 5mins) = 50 Casting (10 x 3mins) = 30 Painting (10 x 4mins) = 40 Finishing (10 x 3mins) = 30 Total Processing Time: 150 Move & wait time (7+18+11+15)/10 = 40 Total Batch Time: 190 mins Step 1: Add all value-added time (BATCH SIZE X MINS/UNIT) Step 2: Add move & wait time Equals TOTAL BATCH TIME. For Cellular Lean Manufacturing First Unit (5+3+4+3 mins) = 15 mins Total Processing Time = 60 mins (# of units - 1) * Longest time among ALL activities Time saved over traditional manufacturing: 150 minutes - 60 minutes = 90 minutes P1 PharmU, Inc., has the following structure for producing a popular pain medication. A consultant designed the following cellular manufacturing structure for the same product. (1) Calculate the time required to produce a batch of 10 bottles using a batch processing, departmental structure. (2) Calculate the time to process 10 units using cellular manufacturing. (3) How much will be saved from lean manufacturing? Traditional Manufacturing Mixing Dept. 10 mins MVT 9 mins Heating Dept. 7 mins MVT 9 mins Tableting 8 mins MVT 15 mins Bottling 5 mins Cellular Manufacturing Mixing Dept. 10 mins Heating 7 mins Tableting 8 mins Bottling 5 mins First Unit: (10+7+8+5) = 30 Total Processing Time: (9 x 10) + 30 = 120 mins Move & Wait Time: (9+9+20+15) = 53 Total Batch Time: 353 mins Time Saved = 353 - 120 = 233 mins