In class, we discussed that key elements of deploying the Factory Physics Framew

Question

In class, we discussed that key elements of deploying the Factory Physics Framework often include:

Aligning Operations Strategy with Business Strategy

Determining the Portfolio of Buffers at a Strategic Level

Assessment of Utilization

Finding the Bottleneck

Using a WIPCAP

Reviewing opportunities to optimize inventory including “Common Components for Assemble to Order”

Setting Lead-times using the Concept of Due Date Quoting

Please discuss why each of these is important to analyze an operation and how it could be used in an analysis of the following medical device manufacturing business:

A Multi-Billion Dollar Medical Devices Company produces devices which are assemblies. Given the critical nature of delivery of devices to hospital and doctors, medical device companies do not want to stock out. This medical device company in this case was plagued by long lead-times (2 months) and poor service (50%) from its internal plants to its distribution centers. The distribution centers compensated for the poor performance by holding a large inventory (order of magnitude in hundreds of millions) buffer of Finished Goods inventory in its warehouses. This tied up valuable cash that could be used for R&D to fuel future growth.

Explanation / Answer

Generally factory physics helps manage the portfolio of buffers. These key words are useful for an operation such as:

1. Aligning operation with business strategy helps to manage and supply products on-time by reducing its lead production time.

2. As we all know that factory physics manage portfolio of buffers and companies uses this framework to improve their systems as well as design new systems to improve their strategic level.

3. As it can help reduce a lot more time so production and supply of goods can be done alot more effectively by utilizing its inventory.

4. For avoiding a bottleneck situation, companies always uses production strategies as it will avoid the overload of production system.

5. Work in progress system WIPCAP is used to go on the production system in the machines with proper supply of inventories.

6. As the main motive of the factory phyics is to give high supply with low cost by utilizing the available inventories properly.

7. Customers' due date is very important for scheduling the lead time as changing the scheduling decisions may results in machine failure and decrease in customer service.

Medical device manufacturing companies can put a stategy level to lessen the lead time and increase their production with proper inventories so they can always deliver machines to the hospital and doctors in time.

While production of machines the companies should make room for the large finished goods according to order by utlizing 5S.

The important point is when companies can identify the exact demand of the machines, then they can manufacture with low cost and increase their quality of services more.

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