Category Archives: Inventory

How to Determine Your Lot Size – Part 3

This is the third and final post on lot sizes (Part 1 and Part 2). After considering all the factors of the processes and inventories (changeover time, batch size, customer order size, and container and shipment size), we now look at how to set up the information flow. This is especially important if we want to have different lot sizes in different sections of our value stream. Continue reading How to Determine Your Lot Size – Part 3

How to Determine Your Lot Size – Part 2

A good lot size has a significant impact on the performance of the system. In this second post, I look at the influence of the machine batch size on the lot size. I also briefly go into the lot sizes for the processing industry, and also  administrative processes. In my next and last post I will look at how to manage different lot sizes in different parts of the value stream. Continue reading How to Determine Your Lot Size – Part 2

How to Determine Your Lot Size – Part 1

There are a few factors that can influence lot size: machine batch size, changeover time, size of the container, shipment sizes, and the size of your customers’ orders, which then are combined in the set up of the information flow. All of these factors can be influenced to move toward the true north of lot size one! Also, do not confuse the lot size with the number of parts per kanban. They are related but can be different. In this series of three posts, let me explain in more detail how the factors come together for you to determine the lot size of your processes. Continue reading How to Determine Your Lot Size – Part 1

Toyota’s and Denso’s Relentless Quest for Lot Size One

Relay Race Hand Over
Just when you need it …

A famous step toward perfection in a lean production system is a lot size of one. However, few people realize what enormous effort and rigor Toyota applies to achieve this goal. During my visit to a Toyota plant and the APMS conference in Tokyo in 2015, I saw quite a few stunning examples of this quest. Let me show you … Continue reading Toyota’s and Denso’s Relentless Quest for Lot Size One

Can you tell your Bottleneck from your Inventory?

HourglassOn the shop floor it is common wisdom to find the bottleneck based on the inventory. If the buffer is full, the bottleneck is downstream. If the buffer is empty, the bottleneck is upstream. Is this true? My student Carolin Romeser and I spent quite some time verifying this, and found some interesting results. In general it is true, but … the devil is in the details. Continue reading Can you tell your Bottleneck from your Inventory?

How to Prioritize Your Work Orders – Prioritization of Made to Order

Nico_Rosberg_overtaking_Heidfeld_2007_BrazilIn my previous posts I went into great detail on how to prioritize your work, with a focus on made-to-stock-type production. In this last post of my series on work prioritization, I look at made-to-order systems and mixed made-to-order and made-to-stock systems. Continue reading How to Prioritize Your Work Orders – Prioritization of Made to Order

How to Prioritize Your Work Orders – Prioritization of Made to Stock

Emergency Corridor 2
Prioritization strategy for emergency vehicles …

In my last two posts I described why and how to establish a system for handling priority work orders. This post discusses how to actually prioritize your different work orders.

Hint: It has a lot to do with the quantity of a particular product ordered. The more frequently a product is ordered, the easier it is to provide the parts through inventory rather than rush orders. But … I rush ahead 🙂 .

There are different strategies available, depending on your production mix – in particular your mixture of made-to-order and made-to-stock products.  Let’s first focus on made-to-stock production. Continue reading How to Prioritize Your Work Orders – Prioritization of Made to Stock

How to Prioritize Your Work Orders – The VIP Lane

VIP LabelIn my previous post I went through the basics of prioritization of your work orders. The easiest way to prioritize these orders is through a VIP lane: a lane for very important parts. In this post I will discuss what you need to make your VIP lane work – and how you can completely mess up a priority system. In my next post I will describe different prioritization strategies that can be used. Continue reading How to Prioritize Your Work Orders – The VIP Lane