RE: Need ideas please. Outside the Box(for us)

Manufacturing has the capacity to produce more parts than Assembly has the
capacity to transform into end items
               based on a 40 hour week at the current manpower levels.
There is a no layoff and a no reduction in hours paradigm that must be
honored.
There is also a reluctance to move people from manufacturing to assembly.
Therefore the decision has been made to run manufacturing at its current
full capacity and build manufactured parts inventory.
They are aware of the higher inventory $ and that's OK.
We want to try to use inventory as a way to level capacity in manufacturing
and stick to 40 hour weeks
Our typical peak end unit periods are the winter months.
It is better for us to put in overtime in assembly because of the short
lead times (1 day), the smaller lot sizes (5 - 20) and less expertise.
Obsolescence is not a problem. 54 years old and still selling repair parts
for units built back then.




                    Dave Turbide
                    <dave@daveturbide        To:     mapics-l@midrange.com
                    .com>                    cc:
                    Sent by:                 Subject:     RE: Need ideas 
please. Outside the Box(for us)
                    mapics-l-admin@mi
                    drange.com


                    06/27/2002 02:58
                    PM
                    Please respond to
                    mapics-l






Why does management want to drive the component operation differently from
the product?

Is it a matter of excess capacity at the component level and they're
looking for "efficiency" or "utilization"? If so, they'd netter be
prepared to swallow a higher inventory and some obsolescence risk.

If it's a lead-time issue - want to stockpile major parts and components to
support assemble-to-order, - the challenge is making the right components
and holding the right quantities. That's going to be tough to do if the
lower level items are not being driven by forecast.



Dave Turbide, CFPIM, CMfgE, CIRM
Market Analysis and Communication
883 Ocean Blvd
Hampton, NH 03842
phone(603) 926-1435
fax (603) 926-0862
www.daveturbide.com


_______________________________________________
This is the MAPICS ERP System Discussion (MAPICS-L) mailing list
To post a message email: MAPICS-L@midrange.com
To subscribe, unsubscribe, or change list options,
visit: http://lists.midrange.com/cgi-bin/listinfo/mapics-l
or email: MAPICS-L-request@midrange.com
Before posting, please take a moment to review the archives
at http://archive.midrange.com/mapics-l.