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OPT - Aluminium Extrusion
Transcript of OPT - Aluminium Extrusion
We must first understand the importance of the three main principles of OPT.
Inventory - Decreasing the inventory of the business means controlling the amount of ; components, materials and finished products. These goods have not yet been paid for by customers and so are funded by the business. To get round this a 'just in time' methodology can be applied. This is could potentially cause a bottleneck as items will be available just prior to dispatch to customers, but a reduction in inventory will follow this.
Throughput - The rate at which the plant produces the product. Increasing the throughput of the plant over the entire production process. The throughput will be increased by perfecting the flow of the production ie. reducing bottlenecks.
Operating Expenses - The cost that defines the amount of money the company has spent to turn inventory into throughput. This can be reduced by not only cutting operating costs but by implementing long term investment, such as; machinery upgrades, additional machinery, training etc. Balance flow - Balancing the flow at each work station so that their operating capacity is similar is the ideal solution. The result of this is reducing inventory and increasing throughput. This can be improved by investing in additional equipment, such as a second ageing oven. However this must be carefully planned as a bottleneck such as this being reduced could increase inventory.
Non-Bottleneck Utilisation - Allow the bottlenecks to control the non-bottlenecks. The areas that operate more efficiently should be 'slowed' down, otherwise inventory will be increased. For example; If the fine saw cannot cope with rate at which the extrusions reach it then slow the extrusion press down. Otherwise inventory will be produced that cannot be utilised. Remelt Saw Heater Extrusion Press Saw Oven Logs cut
and heated Extrusion Saw to customer specification 45 mins 40 mins 60 mins Critical Resources Activated Resources The Remelt Facility and Ageing Ovens provide both the raw material and stock for inventory. If the extrusion and sawing processes can't be correctly utilised then all we are producing is inventory. It is possible to activate a non-bottleneck resource easily, but if the next process is a bottleneck then the equipment is not being utilised effectively. Transfer Batch A transfer batch could be used at both sawing points. We don't need to look at the extrusion process necessarily as producing 50 extrusions at a time. Instead set the extrusions into batches of single orders for separate customers. These extrusions may then progress onto a further stage such as anodising. A quick way to examine whether or not the company is profitable is by the following equation. Throughput - Operating Expenses = PROFIT Aluminium Extrusion The following presentation details the production of an extruded aluminium product. Using OPT in order to improve the plants output you will see the system in place to turn a scrap aluminium product into a finished extrusion. Extruded products include every day items such as window frames, car steering columns and yacht masts. Critical resources have the effect upon failure that the entire plant process will come to a halt if any of the equipment fails. I have identified the following three processes as critical resources to the aluminium extrusion process. The times indicate the period at which a single five metre aluminium log will be processed through the system. Throughput Accounting Sales Proforma Recommendations to meet OPT Invest in additional equipment to reduce bottlenecks.
Additional training for staff.
Maintain a low inventory.
Adopt a scheduled maintenance program.
Balance the flow of work at each workstation.