Thursday, September 5, 2024

Operation Batch Quantity Analysis






Prof. K.V.S.S. Narayana Rao, NITIE Mumbai, Now IIM Mumbai 
5 September Teachers Day in India 


Process Improvement - Productivity Analysis and Productivity Engineering.

Industrial engineer analyzes each process into its ultimate, simple elements, and compares each of these simplest steps or processes with an ideal or perfect condition and modifies the element appropriately. - F.W. Taylor - Hugo Diemer.

Prof. Hugo Diemer  - Taylor's Industrial Engineering

https://nraoiekc.blogspot.com/2020/05/prof-hugo-diemer-taylors-industrial.html


Operation batch quantity analysis is important due to the benefits of flow production. The flow has to be improved and efforts are made to reduce batch quantity to one economically. The earlier notion of economic batch quantity is still valid. But efforts have to be made to reduce ordering cost and setup cost to reduce economic batch quantity. This will reduce inventory buildup due to lot quantity.

Production lot quantity decision is affected by setup cost. The setup time reduction studies are initiated based on this analysis. Reduction in transport batch quantities was achieved through developing milk runs that reduced setup cost for sending a vehicle or using a vehicle for transporting materials from a supplier to the plant.

In machine shops cells are to be formed for groups of parts. 

Theory of constraints or bottleneck management highlights that batch quantity calculations are relevant for bottlenecks to minimize time spent in setups.  But for machines with surplus capacity, the setup cost calculations are more complex and simple calculations presently made are not appropriate. More time can be spent on setups to run small batches and facilitate maximum utilization of bottleneck machine to increase the sales throughput of the system.

Batch quantity analysis is important in operation analysis and process analysis.






ud. 5.9.2024,  9.10.2022
pub. 5.9.2021

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