Paper type: Essay Pages: 3 (604 words)
(vii) Production rate
It is the amount of time required to produce one unit of a product or the quantity of goods that can be produced during a given time period.
(viii) Reject Ratio
Reject ratio is the occasional scrap produced by the production processes. Profitability goals can be reached faster if scrap is minimum. Hence the tolerable limit for scrap must be tracked frequently.
(ix) Cycle Time
Takt time or cycle time is the amount of time for the completion of a task like producing a product but relates more closely to the cycle time of specific operations.
The constraints or bottlenecks are within a process can be easily highlighted by the manufacturers using this KPI. Thus, the smaller the cycle time, the faster can the goods be made and delivered.
Downtime is the breakdown or changeover of the machine. Its a simple rule – no money is being made when the machine is not working. Profitability an be increased by reducing downtime (Red Lion, 2013).
2.2.2 Prioritization Methods
In order to implement the ideas effectively in the real world, rational decision making is the ingredient needed. Decision making has two broad categories: normative decision making and descriptive decision making. Normative means deciding the preference or what do we desire the most, while descriptive decision-making means making the best choice given all the influences around can affect the optimality of the choice being made. Normative statements enact how things should be (Whitaker 2007).
For prioritizing the complex structure of products, it is necessary to first review the applicable methods, that are available and can be used for prioritization.
One such method is Multiple?attribute value theory (MAVT). This method tries to deal with the complexity of real-world attributes by building interactions within attributes using the value function. MAVT assigns a real value to each parameter, which acts a value for making judgements on prioritization by using it to decide the preference of parameters. Two of the commonly used methods of MAVT are Weighted Summation and Analytic hierarchy process (AHP) (Herwijnen, 2007). Methods like Analytic hierarchy process and Analytic Network Process (ANP) are used in decision making which involves preferences, specifically with intangible factors (Whitaker 2007). These methods were a little complex for this application, so it was decided to move to methods which are faster and easier to work with. The further results can be processed and used easily by a variety of audience.
T Their values have different scales and have been calculated over a long period of time. The values need to be aggregated to a single composite measure. These values need to be normalized so that the ranking for each value is based on a similar scale. The index of the variability of the original data points is standard deviation (Streiner, 1996). Standard deviation gives an amount of dispersion which describes how closely the data is grouped. Small values imply that the data is closely grouped while larger values means the data is widely spread out (Johnson & Kuby, 2011). Lee and Li suggest using standard deviation and mean for ranking, while Yager uses the general mean calculation method for ranking fuzzy numbers. The mean method has a poor discrimination ability compared to standard deviation. Fayez (2005) developed a process oriented structured framework for classifying supply chain activities using KPIs, for speeding up the activities. The KPIs were converted into percentages for prioritizing. The simple rank assignment is assigning weights in the order of magnitude. Here, the need and effort required for normalization is reduced. The method which easier for the stakeholders (from business as well as technical fields) to understand regardless of their background and area of work is preferred.
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vii Production rate It is the amount of time required to produce one. (2019, Nov 20). Retrieved from https://studymoose.com/vii-production-rate-it-is-the-amount-of-time-required-to-produce-one-best-essay