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Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com1Basic Factory DynamicsPhysics should be explained as simply as possible, but no simpler. Albert Einstein Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com

HAL CaseLarge Panel Line: 5roduces un5o5ulated 5rinted circuit boardsLine runs 24 hr/day (but 19.5 hrs oI 5roductive time)Recent Performance: through5ut 1,400 5anels 5er day (71.8 5anels/hr) WIP 47,600 5anels CT 34 days (663 hr at 19.5 hr/day) customer service 75 on-time deliveryWhat data do we need to decide?Is HAL lean? Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com3HAL - Large Panel Line ProcessesLamination (Cores): 5ress co55er and 5re5reg into core blanksMachining: trim cores to sizeInternal Circuitize: etch circuitry into co55er oI coresOptical Test and Repair (Internal): scan 5anels o5tically Ior deIectsLamination (Composites): 5ress cores into multi5le layer boardsExternal Circuitize: etch circuitry into co55er on outside oI com5ositesOptical Test and Repair (External): scan com5osites o5tically Ior deIectsDrilling: holes to 5rovide connections between layersCopper Plate: de5osits co55er in holes to establish connectionsProcoat: a55ly 5lastic coating to 5rotect boardsSizing: cut 5anels into boardsEnd of Line Test: Iinal electrical test Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com4HAL Case - Science?External Benchmarking but other 5lants may not be com5arableInternal Benchmarking ca5acity data: what is utilization? but this ignores WIP eIIectseed relationships between WIP, 1H, C1, service! Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com5DefinitionsWorkstations: a collection oI one or more identical machines.Parts: a com5onent, sub-assembly, or an assembly that moves through the workstations.End Items: 5arts sold directly to customers; relationshi5 to constituent 5arts deIined in bill of material.Consumables: bits, chemicals, gasses, etc., used in 5rocess but do not become 5art oI the 5roduct that is sold.Routing: sequence oI workstations needed to make a 5art.Order: request Irom customer.1ob: transIer quantity on the line. Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com6Definitions (cont.)Throughput (TH): Ior a line, through5ut is the average quantity oI ood (non-deIective) 5arts 5roduced 5er unit time.Work in Process (WIP): inventory between the start and end5oints oI a 5roduct routing.Raw Material Inventory (RMI): material stocked at beginning oI routing.Crib and Finished Goods Inventory (FGI): crib inventory is material held in a stock5oint at the end oI a routing; FGI is material held in inventory 5rior to shi55ing to the customer.Cycle Time (CT): time between release oI the job at the beginning oI the routing until it reaches an inventory 5oint at the end oI the routing. Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com7Factory PhysicsDefinition: A manuIacturing system is a oal-oriented networkoI processes through which parts flow.Structure: Plant is made u5 oI routings (lines), which in turn are made u5 oI 5rocesses.Focus: actory Physics

is concerned with the network and Ilows at the routing (line) level. Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com8ParametersDescriptors of a Line:1) Bottleneck Rate (rb): #ate (5arts/unit time or jobs/unit time) oI the 5rocess center having the highest lonterm utilization.2) Raw Process Time (10): $um oI the lonterm averae5rocess times oI each station in the line.) Congestion Coefficient (-): A unitless measure oI congestion. Zero variability case, - 0. 'Practical worst case, - 1. 'Worst 5ossible case, - 0.ote: e ont use - 6uantitatively,but point it out to reconi:e that linesith same rb and T0 can behave verydifferently. Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com9Parameters (cont.)Relationship:Critical WIP (W0): WIP level in which a line having no congestion would achieve maximum through5ut (i.e., rb) with minimum cycle time (i.e., T0).

0 rb T0 Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com10The Penny FabCharacteristics: Four identical tools in series. Each takes hours 5er 5iece (5enny). No variability. CONWIP job releases.Parameters:rb T0

0 - 0.5 pennies/hour8 hours0.5 L 8 4 pennies0 (no variability, best case conditions) Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com11The Penny Fab The Penny Fab Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com1The Penny Fab (WIP1) The Penny Fab (WIP1)Time 0 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com13The Penny Fab (WIP1) The Penny Fab (WIP1)Time hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com14The Penny Fab (WIP1) The Penny Fab (WIP1)Time 4 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com15The Penny Fab (WIP1) The Penny Fab (WIP1)Time 6 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com16The Penny Fab (WIP1) The Penny Fab (WIP1)Time 8 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com17The Penny Fab (WIP1) The Penny Fab (WIP1)Time 10 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com18The Penny Fab (WIP1) The Penny Fab (WIP1)Time 1 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com19The Penny Fab (WIP1) The Penny Fab (WIP1)Time 14 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com0The Penny Fab (WIP1) The Penny Fab (WIP1)Time 16 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com1Penny Fab PerformanceWIP TH CT THLCT 1 0.15 8 1 3 4 5 6 Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com

The Penny Fab (WIP2) The Penny Fab (WIP2)Time 0 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com3The Penny Fab (WIP2) The Penny Fab (WIP2)Time hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com4The Penny Fab (WIP2) The Penny Fab (WIP2)Time 4 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com5The Penny Fab (WIP2) The Penny Fab (WIP2)Time 6 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com6The Penny Fab (WIP2) The Penny Fab (WIP2)Time 8 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com7The Penny Fab (WIP2) The Penny Fab (WIP2)Time 10 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com8The Penny Fab (WIP2) The Penny Fab (WIP2)Time 1 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com9The Penny Fab (WIP2) The Penny Fab (WIP2)Time 14 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com30The Penny Fab (WIP2) The Penny Fab (WIP2)Time 16 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com31The Penny Fab (WIP2) The Penny Fab (WIP2)Time 18 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com3Penny Fab PerformanceWIP TH CT THLCT 1 0.15 8 1 0.50 8 3 4 5 6 Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com33The Penny Fab (WIP4) The Penny Fab (WIP4)Time 0 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com34The Penny Fab (WIP4) The Penny Fab (WIP4)Time hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com35The Penny Fab (WIP4) The Penny Fab (WIP4)Time 4 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com36The Penny Fab (WIP4) The Penny Fab (WIP4)Time 6 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com37The Penny Fab (WIP4) The Penny Fab (WIP4)Time 8 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com38The Penny Fab (WIP4) The Penny Fab (WIP4)Time 10 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com39The Penny Fab (WIP4) The Penny Fab (WIP4)Time 1 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com40The Penny Fab (WIP4) The Penny Fab (WIP4)Time 14 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com41Penny Fab PerformanceWIP TH CT THLCT 1 0.15 8 1 0.50 8 3 0.375 8 3 4 0.500 8 4 5 6 Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com4The Penny Fab (WIP5) The Penny Fab (WIP5)Time 0 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com43The Penny Fab (WIP5) The Penny Fab (WIP5)Time hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com44The Penny Fab (WIP5) The Penny Fab (WIP5)Time 4 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com45The Penny Fab (WIP5) The Penny Fab (WIP5)Time 6 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com46The Penny Fab (WIP5) The Penny Fab (WIP5)Time 8 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com47The Penny Fab (WIP5) The Penny Fab (WIP5)Time 10 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com48The Penny Fab (WIP5) The Penny Fab (WIP5)Time 1 hours Wallace 1. Hopp, Mark L. Spearman, 1996, 2000 http://www.factory-physics.com49Penny Fab PerformanceWIP TH CT THLCT 1 0.15 8 1 0.5