Operations and Supply Chain Management The Core

LEAN SUPPLY CHAINS chapter 12 423
CASE: QUALITY PARTS COMPANY
Quality Parts Company supplies gizmos for a computer manufacturer
located a few miles away. The company produces
two different models of gizmos in production runs ranging
from 100 to 300 units.
The production flow of models X and Y is shown in
Exhibit 12.14. Model Z requires milling as its first step, but
otherwise follows the same flow pattern as X and Y. Skids
can hold up to 20 gizmos at a time. Approximate times per
unit by operation number and equipment setup times are
shown in Exhibit 12.15.
Demand for gizmos from the computer company ranges
between 125 and 175 per month, equally divided among X, Y,
and Z. Subassembly builds up inventory early in the month to
make certain that a buffer stock is always available. Raw materials
Gizmo Production Flow exhibit 12.14
Machining Dept.
Machine no. 1
Mill
Machine no. 2
Lathe
1
3
2
Receiving
Skid
2 1 1
Skid
5
Machine no. 4
Drill
3
7
6
Table
4
3
Machine no. 3
Drill
4
5 2
Table
Tool crib
From
receiving
8
To
assembly
Subassembly
area for
purchased parts
going into
final assembly
Assembly Dept.
Skid
6
9
4
10
5
Assembly bench
11 12
Finishing Dept.
7
Skid 15
9
14
6
Oven
16
10
Paint
booth
17
Skid
Packing bench
18
8
19
20
13
Skid
11
Skid
12
Skid
7
Skid
8
13
Skid
Shipping
Offices
Operator Part-time worker Scale: 1/4" =1 ft.