TCO= acquisition costpurchase planning cos.quality cos/tax/purch p/fin.

cost + ownership costenergy co/maintaince&repair/fin/suplychain/suply netw +post-ownership costsdisposal environmental co/warranty cost/product liability/customer dissatistification costs.

Flexible resources-study op&imp. Operation/general purpos machine Total people inv.labor is to clos to action/rethink perf measurr/resp at so Visibility- posted schd/strict lim in inve/layout/communicat/charts,logs Preautomation-attain results without exp/system analys/elem. Wst pross Cellular layouts-group dissmilar machines in manufac/workflow 1 dir/cycle time adj by workers path Pull production systemKanban production control-Kanban card indicates stand quantity of prod/Derived from two-bin inv. Sys/ Kanban maintains discipline of pull prod/Prod. kanban authorizes production. Withdrawal kanban authorizes movement of goods Small-lot production-Req. < space and cap./Move proc. Closser/quality problems easy to detect. Quick setups SMED System-separate int setup from ext setp/convert int stp to extern stp/steam line all the aspect of stp/ perf stp activit parall OED/IED/SMED/OTED Uniform production-PROD. Littl bit of evrthing. Daily/smotth production/ Quality at the sourc-jidoka/andon/pokayoka/visual control makes prob vi Total prodctiv maintc-braikdown maint/ prevent maint Sole sourcing

Continuous improvement./Requires total employment involvement/Essence of JIT is willingness of workers to: Kaizen Spot quality problems/Halt production when necessary Generate ideas for improvemen/Analyze problems Perform different functions Constraints-dont ship more than you have/ you cant have negat cost. No lower than 0/needs to be= to amount demanded

It is important for managers to realize that how they run items using inventory control logic relates directly to the fin. Perf. of the firm.

Price-break models deal with the fact that, generally, the selling price of an item varies with the order size. (EOQ) Q = Sqt of 2*D*S / I *C Aggregate value of inventory = (order quantity/2+safety stock)* cost perunit Compute weeks of inventory Units held / units used each week If a company has 50 units and they use 10 units a week, they have 5 weeks worth of inventory K = expected demand during lead time + safety stock / size of container or DL(1 + S)/ C K= # of Kanban card sets D = avg. # of units demanded per period L = lead time to replenish order S = safety stock as a % of demand during the lead time C = container size