ECON 4140 Study Guide - Midterm Guide: Child Labour, Weighted Arithmetic Mean, Sa8000
5 Oct 2018
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Focus should be on balancing flow, not on balancing capacity. Maximizing the output and efficiency of every resource may not maximize the throughput of the entire system. An hour lost at the bottleneck or a constrained resource is an hour lost for the whole system. Bottleneck flows should be equal to the market demand. Activating a non-bottle neck resource is not the same as utilizing a bottleneck resource. Every capital investment must be viewed from the perspective of its global impact on overall throughput, inventory, and operating expense. 6. 1 continuous improvement using a lean system approach. Eight types of waste overproduction mfg. an item before it is needed, making it difficult to detect defects and creating excessive lead times and inventory. Inappropriate processing using expensive equipment when simpler machines could. Investment in smaller flexible equipment, maintaining old machines, and combining process steps: waiting wasteful time incurred when product is not being moved/processed.
