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Small Lot-Size production (Lot-Size)The production of small lots (ideally one piece) is animportant component of many Lean Manufacturing strategies. The size of the lot has direct effect on the inventory, planning as well as on costs. Other effects are less obvious but equally important. Smaller lots reduce the variability in the system and level the production, improving quality. The effects of small lots differ between Make to Order (MTO) and Make to Stock (MTS), but they are important in both situations. In MTO environments, the ability to make smaller lots makes it economically practical to accept smaller orders. This may open up new market segments or eliminate the intermediaries in the supply chain. In an MTS environment, the small lots will translate directly into smaller inventories. Transportation and inventory costs are greatly reduced. The small plots often allow the conversion from MTS to MTO. |
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| The Kanban card of the empty container gets inserted in the box of the different production lots. |
When the production lot has all the Kanbans, the production box is inserted into the production queue. |
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| The production queue highlights the amount of time to complete the required production. | ||
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