The largest ten car makers sell over 200 different car models on the US market. Without vans, SUVs, and sport cars, there are still 100 consumer cars left. Toyota has the largest number with a total of 14 models, yet they still have an excellent market strategy and very little self cannibalization. BMW has much fewer models, yet still manages to cannibalize itself. GM has 13 models and also steps on its own toes, while completely missing another market segment. This post is based on a master’s thesis of one of my students, Amir Javanshir, and the detailed source is at the end of the article. Continue reading American Automotive Market Strategy of Toyota and Others
Your production capacity is one important aspect of your production system. The capacity has to match your demand. If your demand is higher than your capacity, then you will not be able to supply the customer. On the other hand, if your capacity is higher than the demand, then you will have lots of idle workers and machines, which is not good either. The name is actually a bit of a misnomer, since capacity is the ability to contain things, whereas for a production system we are much more interested in the number of parts that are completed. In any case, capacity is important! Continue reading What Is Your Production Capacity?
In my last two posts I described how to measure cycle times. However, for manual processes measuring cycle times is quite different, since the humans that are measured usually strongly dislike being measured. Therefore, it is difficult to measure it directly. There is an alternative to calculate it, but this also has lots of pitfalls. Let me explain you a bit about human psychology, and how to measure manual cycle times. Continue reading Cycle Times for Manual Processes
This is the second post on how to measure the cycle time of a process. Again, the cycle time is the fastest repeatable time in which you can produce one part. Hence, as part of a series on manufacturing speed measurements I continue with more details on what cycle times really are. This is the second post on how to measure cycle times (post 1 here), with an additional third post focusing on the details of manual cycle times coming up next. Continue reading How to Measure Cycle Times – Part 2
The cycle time of a process is a key to match the supply with the demand in lean manufacturing. Everybody working on a shop floor knows the term. Yet, I still find that people sometimes confuse what exactly it means. The cycle time is the fastest repeatable time in which you can produce one part. Hence, in this post as part of a series on manufacturing speed measurements I would like to dig deeper into what cycle times really are, and how to best measure them. As it turns out, there is actually quite some detail on how to measure cycle times, hence I split this post into two parts (second part How to Measure Cycle Times – Part 2), with an additional third post focusing on the details of manual cycle times. Continue reading How to Measure Cycle Times – Part 1
The customer takt (or takt time) is one of the fundamentals for determining the speed of a production system. After my post on How to determine Takt Times, this second post on takt times gives a bit of history, and then goes into more details about possible pitfalls and problems when calculating the customer takt. I also added an example for easier understanding. Continue reading Pitfalls of Takt Times
The customer takt (or takt time) is one of the fundamentals for determining the speed of a production system. It represents the available time divided by the average demand of the customer during that time. Effectively this is the average time between the order of one item. Whenever you design a new production system or change an existing system, one of the early data inputs you need is the customer takt. While the customer takt can be simply calculated by dividing the demand by the time available for production, there are many more details needed to understand it fully. Continue reading How to determine Takt Times
The speed of your production system is a key aspect of your manufacturing system, and controlling it is important for the success of your organization. Unfortunately, there are many different and confusing ways to measure the manufacturing speed. Even a simple question on how to call a speed is often confused, with many practitioners using the same term for different measurements, or different terms for the same measurements. This post aims to give an overview of what is out there, and what it is good for. Continue reading On the Different Ways to Measure Production Speed