Evaluation of the economic impact of operational tactics at an electronics manufacturer

Operational tactics of non-value added time, setup time and lot size reduction for reducing manufacturing cycle time at a large electronics manufacturer were evaluated with economic measures. Features of one of the assembly lines were modeled using actual production data. The simulation model developed covers all assembly operations of the line from board preparation to final system assembly and test. Details of the assembly line modeled are presented. Parameters of the simulation model are described. Experimental design, performance measures, statistical analysis are discussed. The dollar value of both work-in-process (WIP) and finished goods (FG) inventory is used to evaluate the effectiveness of alternative tactics. Managerial implications and recommendations are presente