M133 - Choking the release of raw material

Introduction

In this unit we will explore the mechanism that allows us to choke the release of raw materials. Specifically, we look at the difference between the lead time quoted to the customer (QLT) and the period of time we allow work orders to flow through the plant (PLT). Distinguishing between the two lead times allows us to choke release of raw materials to the plant. Choking raw material release drains work in process from the plant, eliminates the majority of queues and therefore reduces the manufacturing lead times.

What you should do

  1. Read the learning objectives carefully.
  2. Watch the video below and make your own notes.
  3. Review the Unit Notes.
  4. Refer back to the learning objectives to ensure you have satisfied each one.
  5. Complete the assignment.

What you should know

At the end of this lesson you should understand:

  1. The quoted and production lead times and the difference between them.
  2. The choke mechanism and how it reduces the amount of work in process in the plant.
  3. How this reduces queues and manufacturing lead times.
  4. Exactly how the choke mechanism operates in the plant on an ongoing basis.

M133 - Choking the release of raw material

Unit notes

  1. Click here to download the unit handout.
  2. The Quoted Lead Time (QLT) is the time period we use to calculate a due date for the customer.
  3. The Production Lead Time (PLT) is the time period we allow a work order to be processed by the plant to completion.
  4. The PLT is 50% of the QLT.
  5. Therefore, if the QLT is 20 days, the PLT is 10 days.
  6. We calculate the due date using the following formula, Due Date  = today's date PLUS the QLT.
  7. For example, if today's date is the 1st and the QLT is 20 days, then the due date is the 21st.
  8. Raw material release date = Due date MINUS the PLT.
  9. Therefore, if the due date is the 21st and the PLT is 10 days, the raw material release date is the 11th.

M133 Assignment - Creating a dummy raw material release schedule

This assignment is OPTIONAL but RECOMMENDED.

In this assignment, we explore the concept of the Quoted and Production Lead Times. Watch the video and follow the instructions below to complete the assignment.

Click here to download the assignment handout.

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