Article ID: | iaor1995917 |
Country: | United Kingdom |
Volume: | 22 |
Issue: | 4 |
Start Page Number: | 349 |
End Page Number: | 360 |
Publication Date: | Jul 1994 |
Journal: | OMEGA |
Authors: | Barker R.C. |
This paper begins with an assumption that many U.K. manufacturing organizations are inherently wasteful, with complex production systems divorced from the core task of adding value. This waste can be regarded as untapped potential which exists throughout the total value adding chain. Releasing this potential can greatly improve company performance. By focusing upon value adding activity and non value adding removal, waste, complexity and cost can be reduced progressively to achieve world class competitiveness. A time based value adding framework to direct development and continuous improvement is described. The total conversion chain from raw materials purchase to final goods assembly is examined using this approach. Examples taken from the electrical switchgear industry, operating within a post MRP II environment using Kanban type pull system triggers to control material inputs, illustrate the use and effectiveness of the approach.