If tracking your item manufacturer lots are important to you then SIMMS Inventory Management software is the correct solution for you. You cannot afford to not know where your lots are
Small lot production (ideally single pieces) is an important component of many Lean Manufacturing strategies. Lot size directly affects inventory and scheduling. Other effects are equally important but less obvious.
Small lots reduce variability in the system and smooth production. They enhance quality, simplify scheduling, reduce inventory, enable kanban and encourage continuous improvement.
The effects of small lots differ somewhat between Make To Order (MTO) and Make To Stock (MTS) environments but they are important in either situation.
Ideas for Lot Sizes
· Balance your decisions towards the lowest and most reasonable lot size. The ELS does not capture intangible costs of larger lots such as quality and scheduling flexibility. Incidentally, most accounting systems under-estimate carrying costs.
· If items of equipment must be staffed and maintained even when not being used, set lot sizes below the ELS range. While a reduction in inventory will occur, setup costs will not increase.
· Lot sizes should be at the low end of the ELS range. This reduces capital requirements, smoothes manufacturing and adds flexibility to scheduling.
· Set lot sizes to a convenient unit such as “1-day of production,” “two containers” or some round number.
· When a particular machine becomes a “bottleneck” and needs to operate at maximum capacity, set the lot sizes at the upper end of the ELS range. This increases inventory buffers before and after the bottleneck operation but it allows more time for production and less time for setups.
Contact KCSI at 604-504-4215 or by e-mail at email@example.com so we can help you take the first steps towards the solution you have been seeking.