Variety Control of a Semi-Finished Product Within a Group Technology Manufacturing System

Abstract

Stock levels and stocking policy to meet manufacturing and customer service requirements often lead to large sums of money having to be invested in slow moving items and large quantities of work in progress, much of which is designed for one specific need. Rationalization and standardization reduce the manufacturing and stocking costs, provided they are carried out with due consideration of re-order cost and effect on customer service. Within a Group Technology manufacturing system at Ferodo Ltd. consideration has been given to rationalization of semi-finished products for the manufacture of brake linings. The rationalization has not only led to a reduction of basic manufacturing varieties but also provided the basis for a new stocking policy.