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Title: Management of WIP Inventory in JIT Environment Under Cellular Layout - A Case Study
Authors: Venkataramanaiah, S
Krishnaiah, K
Pichandi, R
Issue Date: Mar-2001
Publisher: NISCAIR-CSIR, India
Abstract: In order to enhance the productivity and quality of products and services under the stiff competition in the global market, organisations are compelled to change their manufacturing technologies and strategies. One such strategy is to change the traditional layout into a cellular one to retain flexibility of jobs hop and to bring in more related benefits. This paper discusses the effect of work-in-process (WIP) inventory on throughput rate in a cycle manufacturing company which switched over to a cellular manufacturing recently. A GPSS simulation model was developed to study the performance of the production system. For various models of the cycles, past data on demand, demand arrival time and process times were gathered from each cell. The distributions of these data were used and simulation was carried out for various combinations of WIP inventory with throughput rate as the performance measure. Finally WIP inventory levels for each cell were suggested for future production. Suggestions were also given for effective implementation of JIT strategies under cellular layout to improve the overall productivity. Indicators of a manufacturing system, where the technology was stable and the market structure was static and pre-defined, could be constructed upon the degree of production economy achieved. Normally, these are achieved through incremental innovations. Throughput, defined as the ratio of total satisfied demand to the total generated demand, and expressed as percent customer orders fulfilled, could be considered as an indicator of a stabilised manufacturing system. A related indicator that is somewhat dependent on the technology in operation was the ratio of WIP inventory levels at various cells/workstations to the throughput rate of the system, under throughput maximisation. The distribution of WIP along the cells and not the total WIP, was the most important process indicator under throughput maximisation.
Page(s): 256-263
ISSN: 0975-1084 (Online); 0022-4456 (Print)
Appears in Collections:JSIR Vol.60(03) [March 2001]

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