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Suppose we can decrease the operation time on resource C from 10' to 5'.
What are the consequences of this decrease in operation time?
| Throughput |
Will it increase the output of the factory ? Or, will we be able to sell one product more by the set up reduction?
Not at all, because the constraint did not change!
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If the constraint did not change, and we are not able to sell one product more, what will be the consequences for the bottom-line result ?Will the changes increase Throughput?
NO, the changes will not increase Throughput.
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| Inventory |
Did the changes directly decrease Inventory? Did the reduction in operation time reduce the WIP?
NO. |
| Operating Expenses |
Did the Operating Expenses increase?
Probably.
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Can you think of any other merits of reducing the batchsizes on NON Constraints?
What about effect on buffersizes?
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