Optimization in Production Operations

In: Business and Management

Submitted By nimmarishikesh
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Optimization in Production Operations
Optimal “Lean Operations” in Manufacturing
By Carlos W. Moreno © 2005-06 Ultramax Corporation Oct. 5, 2006 Introduction This essay deals with production / manufacturing operations: with their economic impact (or other metrics) while making product with the existing process, usually driven to satisfy: • market demand (delivered: volume, quality)
• •

economics (incurred: cost savings, resource utilization); and safety (safeguarding equipment, personnel and environment)

These drivers represent the main impact of production on company profits, with short-term and long-term effects on the P&L Statement. The bottom line is that most production processes are underutilized; and the use of mature, accessible mathematical technology unlocks that latent capacity, which is of significant value. The best possible performance is “Optimal Operations.” In the process industry it is called “Process Optimization.” In manufacturing it is the extreme of Lean Operations, one of the components of “Lean Manufacturing” success. Other components that qualify for “lean” in the sense of avoiding waste (non-value-added), and not missing opportunities for improvements are: “Lean Design” (the most common emphasis today), “Lean Logistics – and Supply Chain,” “Lean Maintenance,” “Lean Scheduling,” “Lean Safety,” and “Lean Scheduling.” Some share interests with Six Sigma as well (quality and costs). All these solutions are also part of the classical field of Industrial Engineering in production / manufacturing, now with refined awareness, approaches and tools. The IE discipline maintains its focus on overall corporate goals; more “systems approach” than focusing on indicators of success such as: zero downtime, zero defects, lowest unit cost, zero inventory, minimize Non Value Added time, etc. In particular, this essay focuses on the management of…...

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