Equipment replacement decisions and lean manufacturing |
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| Authors: | William G. Sullivan Thomas N. McDonald Eileen M. Van Aken |
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| Affiliation: | 1. ESC Rennes School of Business, Rennes, France;2. Univ. Grenoble Alpes, CNRS, G-SCOP, F-38000 Grenoble, France;1. Department of Yarn Manufacturing, National Textile University, Pakistan;2. Department of Industrial Engineering, Hongik University, Seoul, South Korea;3. Department of Mechanical and Industrial Engineering, Louisiana State University, Baton Rouge, LA, USA;1. Department of Mathematics, Hajee Mohammad Danesh Science and Technology University, Dinajpur 5200, Bangladesh;2. Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Yogyakarta, Indonesia;3. Department of Mathematics, School of Advanced Sciences, Vellore Institute of Technology, Vellore 632014, India;4. Institute of Innovation and Circular Economy, Asia University, Taiwan;5. Department of Medical Research, China Medical University Hospital, China Medical University, Taiwan;6. Faculty of Economics and Management, University Kebangsaan Malaysia, Malaysia;1. University of South Carolina, 1014 Greene Street, 405L, Columbia, SC, United States;2. Universidade Federal do Rio Grande do Sul, Av. Osvaldo Aranha 99 - Sala LOPP 508 - 5º andar, Porto Alegre, RS, Brazil;3. Universidade Federal de Santa Catarina, Campus Trindade, Mailbox 476, Florianópolis, Brazil;4. ETH Zurich, Weinbergstrasse 56/58, 8092, Zurich, Switzerland |
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| Abstract: | Traditional manufacturing systems are built on the principle of economies of scale. Here, the large fixed costs of production are depreciation-intensive because of huge capital investments made in high-volume operations. These fixed costs are spread over large production batch sizes in an effort to minimize the total unit costs of owning and operating the manufacturing system. As an alternative to “batch-and-queue,” high-volume, and inflexible operations, the principles of the Toyota Production System (TPS) and lean manufacturing have been widely adopted in recent years in the US [1, 2, 3 and 4]. In this paper, we illustrate an equipment replacement decision problem within the context of lean manufacturing implementation. In particular, we demonstrate how the value stream mapping (VSM) suite of tools can be used to map the current state of a production line and design a desired future state. Further, we provide a roadmap for how VSM can provide necessary information for analysis of equipment replacement decision problems encountered in lean manufacturing implementation. |
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| Keywords: | Lean production Equipment replacement Cellular manufacturing Value stream mapping |
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