Lect 4
During this lecture, Mr Koh mentioned about factory physics. Factory physics refers to a systematic description of the laws that govern factory operations.
I have found that reducing work-in-process inventory in order to free up the funds represented by the inventory is something desirable. A simple factory physics relationship about work-in-process inventory is that
Work-in-process inventory = throughput * cycle time
where work-in-process inventory refers to the number of unfinished parts in production, throughput refers to the amount of finished product manufactured in a given time period and cycle time, the amount of time a product spends in the factory from start to finish. From the simple equation, to reduce average work-in-process inventory and keep throughput the same, we need to keep the cycle time low.
Bill of Materials is a formula for making a product. An example of a Bill of Materials can be seen below.
Figure 1: Example of a Bill of MaterialsLabels: LSCM
;ride up my life;.
11/30/2006 07:54:00 AM