The effects of purchased parts commonality on manufacturing lead time

The effects of purchased parts commonality on manufacturing lead time

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Article ID: iaor1998630
Country: United Kingdom
Volume: 17
Issue: 8
Start Page Number: 725
End Page Number: 745
Publication Date: Jan 1997
Journal: International Journal of Operations & Production Management
Authors: ,
Keywords: simulation: applications
Abstract:

Manufacturing managers as well as researchers suggest that reducing manufacturing lead time is essential for competing in world-class manufacturing environments. To achieve world-class manufacturing status, organizations implement a variety of programmes to decrease manufacturing lead time. Uses simulation to analyse the effect of purchased parts standardization on manufacturing lead time under the assumption of limited vendor delivery uncertainty. Creates a wide range of degrees of commonality based on three sets of multilevel product structures with the variations of end-item demand and quantity usage. The statistical results indicate that: increased commonality lowers manufacturing lead time; a more informative commonality measure other than the well-known degree of commonality index is necessary to represent the actual commonality; and the distribution of purchased parts usage across different end items affects manufacturing lead time performance. The results provide important implications for both manufacturing and product design management.

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