By Ron Moore
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Extra info for Making Common Sense Common Practice: Models for Manufacturing Excellence
Because Beta believes that it can sell every unit of product it can make at Beaver Creek, for purposes of this discussion uptime is defined as that percent of product a plant is making compared with that which it could make under ideal conditions—running 8,760 MANUFACTURING AND BUSINESS EXCELLENCE hours per year at 100% of peak demonstrated sustainable rate, making a 100% quality product. However, it is believed that Beaver Creek could increase uptime from 63% to 77% in 1 year by taking the appropriate steps, and the marketing department has said that all the product could be sold at current market price.
Proceed accordingly, and in parallel. Marketing and plant operations must work as a team to drive the improvement process. 7. As capacity is created, go after more market share, without having to invest additional capital, or alternatively rationalize the poorly performing assets. 8. Allow people within operating units considerable freedom to do the job right and ensure maximum reliability and uptime, and plant operational success. 9. Measure and manage along the way. Some plants will not be able to achieve a unit cost of better than about 110% to 120% of the recognized lowest-cost producer.
Changeover/Transition Losses. These include downtime losses, derate losses, and/or product quality losses that occur during a changeover or transition to a new product, both the shutdown losses for the existing product as well as the startup losses for the new product. Minimizing the changeover and transition losses will help minimize manufacturing costs. Changeovers, as we’ll see in Chapter 3, can represent a huge potential for losses, particularly when product mix and marketing and manufacturing issues are not well integrated.