Manufacturing

Process planning in manufacturing flow Value Stream Supply | Inventory Demand | Forecast Budget Schedule Resources Constraints Supply Base Lead Time Critical Path Performance to Plan Capital & expenses Overhead Stakeholder Management Float Planning Flow Network Requirements Economic Order Quantity

Value Stream Critical Path Economic Order Quantity Lead Time The how, what, when, who & where required to meet customer requirements The shortest duration (schedule) of the Value Stream The Amount of Something to order to Minimize Costs The amount of Notice a Supplier needs to Provide you with their Product

Typical Network Value Stream for 3 Tier Build Sequence Fabrication Components Final Assembly 55 99 55 75 70 70 45 45 1 43 51 51 43 Components 43: Component 45: Component 70: Sub-component 51: Sub-component 55: Component Components 70: Fabrication 75: Sub-Fabrication 99:Sub-Fabrication Final Assembly 55: Assembly A 45: Assembly B 43: Assembly C Typical Network Value Stream for 3 Tier Build Sequence

Pancake Model Questions: Approximately how long does it take to make a pancake? What is the most expensive part of the process? Who burdens the most cost? The most risk?

Flour Recipe: 1 part 99 + .001 part 75 = 35 lbs of Flour Fabrication Components 70: Flour 99: Grain 75: Bleaching Agent 99 75 70 90 Day LT Grain (99) 90 Day Lead Time $10 per bushel (32 lbs) Bleaching Agent (75) 30 Day Lead Time $2800 per Metric Ton Flour $3.99 for 5 lb. Bag Flour Recipe: 1 part 99 + .001 part 75 = 35 lbs of Flour

Fabrication Components 1 Day LT Flour $3.99 for 5 lbs Inventory 70 70 45 51 1 Day LT Flour $3.99 for 5 lbs Inventory 2.5 lbs of FLour 30 lbs Grain 1,998 lbs of Bleaching Agent Inventory Carrying Cost: $2804 Pancake Batter 70: Flour 51: Pancake Flavor Inventory 40 oz. of Pancake Batter 2.5 lbs of 70 .5 lbs of 51 Inventory Carrying Cost: $2.00

Components Final Assembly 20 Minutes Pancake Batter 1: Pancakes 55 45 45 1 43 20 Minutes Pancake Batter 1: Pancakes 45: Pancake Batter 55: Eggs 43: Milk Inventory: 1 40 oz Box of Pancake Batter 12 Eggs ½ G of Milk Inventory Carrying Cost: $12.89

Shortest Duration to 1st Batch of Pancakes Fabrication Components Final Assembly 55 99 75 70 70 45 45 1 43 51 90 Day LT 1 Day LT 20 Minutes 91 Days & 20 Minutes Shortest Duration to 1st Batch of Pancakes

Critical Path to 1st Batch of Pancakes Fabrication Components Final Assembly 55 99 75 70 70 45 45 1 43 51 90 Day LT 1 Day LT 20 Minutes Components 70: Flour 99: Grain 90 Days 75: Bleaching Agent 30 Days Components 45: Pancake Batter 70: Flour 51: Pancake Flavor 55: Eggs 43: Milk 1: Pancake 45: Pancake Batter 55: Eggs 43: Milk Critical Path to 1st Batch of Pancakes

Economic Order Quantity to 1st Batch of Pancakes Fabrication Components Final Assembly 55 99 75 70 70 45 45 1 43 51 90 Day LT 1 Day LT 20 Minutes 500 T: Flour 600 T: Grain 1 T: Bleaching Agent QTY 5000: 40 oz. Boxes of Pancake Batter 20 T: Flour 4 T: Pancake Flavor QTY 1: 40 oz. Box of Pancakes 12 Eggs ½ G of Milk Inventory Carrying Cost: $415,300 Inventory Carrying Cost: $54,300 Inventory Carrying Cost: $12.89 Economic Order Quantity to 1st Batch of Pancakes

Value Stream Critical Path Economic Order Quantity Lead Time Fabrication Components Final Assembly 55 99 55 75 70 70 49 45 1 42 51 43 Components 43: Battery 49: Circuit Board 70: CPU 51: Software 55: Aluminum Billet Components 70: CPU 75: Ionization 99: Silicon Wafers Cell Phone 55: Chassis 42: Provisioned Circuit Board 45: Touch Screen Value Stream Critical Path Economic Order Quantity Lead Time Industry Application of Value Stream Mapping

Pancake Model Questions: Approximately how long does it take to make a pancake? What is the most expensive part of the process? Who burdens the most cost? The most risk?

Questions