Title: Operational tactics at a Nortel Networks plant: cycle time and inventory issues

Authors: Albert Chan, Venus P. Chan, Ahmet Satir, Vincent J. Thomson, Patrice Treguier

Addresses: National Research Council of Canada, Ottawa, Ontario, Canada. Patrick J. McKenna Inc, 3535 Papineau, Room 1516, Montreal, Quebec H2K 4J, Canada. Department of Decision Sciences and MIS, Concordia University, Montreal, Quebec H3G 1M8, Canada. Department of Mechanical Engineering, McGill University, Montreal, Quebec H3A 2K6, Canada. Ecole Centrale de Nantes, 158 Franklin Roosevelt, Mitry-Mory 77290, France

Abstract: Increased competition through globalisation, coupled with increasing complexity and uncertainty in the marketplace, is challenging companies to deploy various operational tactics. Three widely used manufacturing cycle time and inventory reduction tactics are evaluated at a Nortel Networks plant, namely, setup reduction, non-value added time reduction and lot size adjustment. A computer simulation with actual data from company operations was used to study and evaluate the different tactics for an assembly line. We illustrate the possibility of achieving up to 88% reduction in cycle time and up to 19% savings in inventory costs. The impact of reduced cycle time on selected raw material component groups is also evaluated. Field implementation of the study is discussed with respect to industrial and pedagogical applications.

Keywords: cycle time; setup; lot size; inventory; simulation; telecommunication equipment.

DOI: 10.1504/IJMTM.2002.002522

International Journal of Manufacturing Technology and Management, 2002 Vol.4 No.6, pp.504-520

Published online: 19 Jul 2003 *

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