Optimising multi-product batch manufacturing system layout

In response to global competition, manufacturing companies are investigating the strategic management of manufacture as a means to improve their competitive positioning. Existing strategies, based on economies of scale emphasising the role of high volume production, are being discarded for proactive strategies based on flexibility, requiring reduced time to market for new products and a reduction in delivery cycles for existing products. This fact, coupled to a recessionary climate in which attempts are made to reduce stock and work in progress is leading many companies to adopt just in time (JIT) methods of manufacture. The decision to change to JIT operations carries profound commitments for a company as the total operation of the firm must be re-established on JIT principles requiring considerable amounts of time, money and effort. It is imperative, therefore, that an accurate estimation of the total potential benefits be established at the initial stage of appraisal such that advantages may be compared with the cost of installation. This paper identifies some of the major costs and benefits of JIT implications for the manufacturing system and applies an analytic investigation incorporating steady state queuing theory to illustrate the variations in scheduling effectiveness, plant layout and work in progress costs affecting production performance