The objective is to meet delivery dates and to make the best use of manufacturing resources. It involves establishing start and finish dates for each operation required to complete an item.
Manufacturing Lead Time
Manufacturing lead time (MLT) is the time normally required to produce an item in a typical lot quantity. MLT consists of five elements:
- Queue time, amount of time the job is waiting at a work center before operation begins.
- Setup time, time required to prepare the work center for operation.
- Run time, time needed to run the other through the operation.
- Wait time, amount of time the job is at the work center before being moved to the next work center.
- Move, transit time between work centers.
Example Problem:
An order for 100 of a product is processed on work centers A and B. The setup time on A is 30 minutes, and run time is 10 minutes per piece. Wait time between the two operations is 4 hours. The move time between A and B is 10 minutes. Wait time after operation B is 4 hours, and the move time into stores is 15 minutes. There is no queue at either workstation. Calculate the total manufacturing lead time for the order.
Answer:
Work center A operation time = 30 + (100 x 10) = 1030 minutes
Wait time = 240 minutes
Move time from A to B = 10 minutes
Work center B operation time = 50 + (100 x 5) = 550 minutes
Wait time = 240 minutes
Move time from B to stores = 15 minutes
Total manufacturing lead time = 2085 minutes

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