Flow manufacturing – necessity, benefits, and implementation: a case study
| Date | 01 March 2002 |
| Pages | 73-79 |
| Published date | 01 March 2002 |
| DOI | https://doi.org/10.1108/02635570210419618 |
| Author | Jaideep Motwani,Zubair M. Mohamed |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Flow manufacturing ± necessity, benefits, and
implementation: a case study
Jaideep Motwani
Department of Management, Seidman School of Business,
Grand Valley State University, Grand Rapids, Michigan, USA
Zubair M. Mohamed
Department of Management and Information Systems,
Gordon Ford College of Business Administration, Western Kentucky University,
Bowling Green, Kentucky, USA
Introduction:
Despite the huge investments in information
technology, new systems, and equipment,
many companies have not improved their
market responsiveness or operating
efficiencies. Still in many companies the
on-time deliveries are below 95 percent and
inventory turns are under 10 percent
(Greene, 1999). Flow manufacturing also
referred to as agile, lean, or continuous
manufacturing holds the promise that other
process improvement programs were
designed to achieve. Flow manufacturing is a
pull-driven strategy. Its main principle is
that daily production rate can be
synchronized with demand by properly
sequencing items on a flow line that are
replenished frequently by suppliers at the
point of use. Thus, the inventory can be kept
to a minimum, goods are made to demand,
and the cycle times fall within the order-to-
deliver response times. With flow, the work
moves from one operation to the next one
piece at a time. There is a steady stream or
flow of work passing through the plant more-
or-less uninterrupted.
In the traditional or batch manufacturing
method of production, far more time is spent
in waiting than in actual touch-time
production. Approximately 90 percent of all
machined components are produced in batch
sizes of 50 or fewer (Chang et al., 1991). The
unproductive time not only results in lower
productivity, but also in production costs ten
to 100 times higher compared to mass
production (Snead, 1989). Flow
manufacturing removes all of that non-
productive queue time. In most cases,
production lead time is reduced to less than
10 percent of batch production cycle time
with added benefits of less scrap and
improved quality (Turbide, 1999). A study of a
number of companies that reduced their lead
time found that on average, there was a 2:1
ratio between reduction in lead times and
cost (Meredith et al., 1994). Flow
manufacturing helps companies respond
quickly to the market demand. Companies
adopting quick response strategies grow at a
rate of three times the average for their
industry and at the same time their
profitability can be twice the industry
average (Stalk and Hout, 1992). In some cases,
through quick response, some firms have cut
their lead times in half and used half the
number of people (Charney, 1991).
Nearly half of the Fortune 500 companies,
notably from aerospace, electronics, and
automotive sectors, have used this concept
with great success. In most cases, the results
are immediate, measurable, and significant.
Companies report on-time deliveries in
excess of 98 percent, cycle time reductions
from weeks to days or days to hours,
decreased work-in-process or finished goods
inventory, doubling of capacity, reductions
in floor space, decreased cost of quality, and
increased productivity (Greene, 1999).
In this case study, we discuss the
implementation of flow manufacturing at
Acme International, a toilet bowl and seat
cover manufacturer in Argentina. The
objective of this case study is to elicit the
benefits of flow manufacturing and its
implementation requirements. The next
section deals with the requirements of flow
manufacturing. Following this, we describe
the history of Acme International and
provide overview of its production process.
Then we deal with the implementation of
flow manufacturing at Acme and elicit its
benefits. Conclusions are drawn in the final
section.
Requirements for flow
manufacturing
Implementing flow manufacturing does not
have to be an all-or-nothing proposition.
The current issue and full text archive of this journal is available
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http://www.emeraldinsight.com/0263-5577.htm
[73]
Industrial Management &
Data Systems
102/2 [2002] 73±79
#MCB UP Limited
[ISSN 0263-5577]
[DOI 10.1108/02635570210419618]
Keywords
Flow production, Manufacturing,
Quality, Lead times
Abstract
In this case study, flow
manufacturing implementation at
Acme International, a toilet bowl
and seat manufacturer, is
described. Flow manufacturing, is
a pull-driven strategy; its main
principle is that daily production
rate can be synchronized with
demand. Thus, customer service is
improved while costs are reduced
through improved quality,
minimum or zero inventory, and
elimination of non-productive time
by rearranging equipment and
personnel. In the case of Acme,
the lead time was reduced by 68
percent while at the same time
the defect rate was reduced by
62.5 percent.
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