JIT production, operating efficiency.
Mannklein AG is a major manufacturer of metal-cutting machines. It has plants in Frankfurt and Stuttgart. The managers of these two plants have different manufacturing philosophies.
Liisa Kurunmäki, the recently appointed manager of the Frankfurt plant, is a convert to JIT production and has fully implemented JIT by January 2007.
Thomas Ahrens, manager of the Stuttgart plant, has adopted a wait-and-see approach to JIT. He commented to Kurunmäki: 'In my time, I have forgotten more manufacturing acronyms than you have read about in your five-year career. In two years' time, JIT will join the manufacturing buzzword scrapheap.' Ahrens continues with his 'well-honed' tradi- tional approach to manufacturing at the Stuttgart plant.
Summary operating data for the two plants in 2007 are as follows:
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January- March
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April- June
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July- September
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October- December
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Manufacturing lead time (days)
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|
|
|
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Frankfurt
|
9.2
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8.7
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7.4
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6.2
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Stuttgart
|
8.3
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8.2
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8.4
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8.1
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Total set-up time for machines
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|
|
|
|
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Total production time
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|
|
|
|
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Frankfurt
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52.1%
|
49.6%
|
43.8%
|
39.2%
|
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Stuttgart
|
47.6
|
48.1
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46.7
|
47.5
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Number of units requiring rework
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|
|
|
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Total number of units started and completed
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|
|
|
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Frankfurt
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64.7%
|
59.6%
|
52.1%
|
35.6%
|
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Stuttgart
|
53.8
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56.2
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51.6
|
52.7
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Required
1. What are the key features of JIT production?
2. Compare the operating performance of the Frankfurt and Stuttgart plants in 2007. Comment on any differences you observe.
3. Kurunmäki is concerned about the level of detail on the job-cost records for the cutting machines manufactured at the Frankfurt plant during 2007. What reasons might lead Kurunmäki to simplify the job-cost records?