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Improvement of Material Flow in the Production and Supply Chain of ...

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<strong>and</strong> unforeseen events by keep<strong>in</strong>g safety stocks. The safety stocks assure <strong>the</strong><br />

necessary flexibility; or ra<strong>the</strong>r <strong>the</strong>y act as buffers for <strong>the</strong> lacks <strong>of</strong> flexibility <strong>in</strong><br />

supply cha<strong>in</strong>.<br />

4. Miss some customers.<br />

S<strong>in</strong>ce all <strong>of</strong> <strong>the</strong> solutions discussed <strong>in</strong> this paper will help achieve <strong>the</strong> market<br />

requirement, <strong>the</strong> lead time will be reduced. It is evident that <strong>the</strong> third solution will<br />

reduce <strong>the</strong> lead time most s<strong>in</strong>ce two new mach<strong>in</strong>es are <strong>in</strong>vested as well as <strong>the</strong> repair<br />

time is reduced. For <strong>the</strong> first <strong>and</strong> third solutions, it is difficult to compare <strong>the</strong>se two but<br />

both <strong>of</strong> <strong>the</strong>m decrease <strong>the</strong> lead time. And <strong>the</strong>y are better than <strong>the</strong> last two methods.<br />

Compar<strong>in</strong>g <strong>the</strong> last two, it is easy to get <strong>the</strong> result that <strong>the</strong> forth one is better than <strong>the</strong> last<br />

one from <strong>the</strong> aspect <strong>of</strong> reduc<strong>in</strong>g lead time.<br />

So <strong>the</strong> order from <strong>the</strong> lead time view is that <strong>the</strong> third solution takes <strong>the</strong> first; <strong>the</strong>n is <strong>the</strong><br />

first <strong>and</strong> second solutions; <strong>and</strong> next is <strong>the</strong> forth solution; <strong>the</strong> fifth solution st<strong>and</strong>s <strong>the</strong><br />

fifth.<br />

4.5 Results<br />

Based on <strong>the</strong> discussion above, a table is used to shown <strong>the</strong> result clearly. In this table,<br />

us<strong>in</strong>g <strong>the</strong> mark denote different levels. The number one gets five, number two gets four,<br />

<strong>the</strong>n <strong>the</strong> third one gets three, <strong>the</strong> forth gets two, <strong>and</strong> <strong>the</strong> last one get one. After calculate<br />

<strong>the</strong> total mark <strong>of</strong> each solution, <strong>the</strong> solution with <strong>the</strong> maximal mark will be <strong>the</strong> best one.<br />

From <strong>the</strong> result shown <strong>in</strong> Table 4.10, <strong>the</strong> solutions focus on <strong>the</strong> bottlenecks get similar<br />

marks with higher records. So <strong>the</strong> core to improve current situation is manag<strong>in</strong>g to<br />

solve <strong>the</strong> problems <strong>of</strong> bottlenecks.<br />

Table 4.10 Comparison Results <strong>of</strong> Different Solutions<br />

Invest<br />

mach<strong>in</strong>es<br />

at station<br />

8 <strong>and</strong><br />

station 2<br />

Invest<br />

mach<strong>in</strong>e at<br />

station8 &<br />

cut down<br />

TTR &<br />

three shifts<br />

overwork<br />

Invest<br />

mach<strong>in</strong>es at<br />

station 8<br />

<strong>and</strong> 2 & cut<br />

down TTR<br />

Three<br />

shifts &<br />

cut down<br />

TTR<br />

Three<br />

shifts &<br />

more<br />

effective<br />

work time<br />

Cost 5 5 3 2 2<br />

Reliability 5 3 5 2 2<br />

Lead Time 4 4 5 2 1<br />

Once <strong>the</strong> productivity is confirmed to reach <strong>the</strong> production volume dem<strong>and</strong> <strong>in</strong> 2008,<br />

<strong>in</strong>vestigation <strong>in</strong> material flow among suppliers, <strong>the</strong> company <strong>and</strong> customers is tak<strong>in</strong>g<br />

place. In <strong>the</strong> next chapters, pitfalls <strong>in</strong> <strong>the</strong> supply cha<strong>in</strong> will be <strong>in</strong>vestigated <strong>and</strong><br />

suggestions <strong>in</strong> optimization will be given.<br />

35

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