The Basic of Production

  • The basic requirements of production: to build and deliver products in response to the demands of the customer at a scheduled delivery time, at an acceptable quality level, and at the lowest possible cost.
  • production flow: limiting step. We plan our flow around the most critical step.
  • Three fundamental types of production operations: process, assembly, and test.
  • trade-offs between various factors: manpower, capacity, and inventory, reduce the understanding to a quantifiable set of relationships.
  • Adding Value: all production flows have a basic characteristic: the material becomes more valuable as it moves through the process.
  • Common rule: detect and fix any problem … at the lowest-value stage possible.

from High Output Management by Andrew S.Grove

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