Study of Studies

The first thing Barax did was attempt to understand capacity. The first step is identifying the average length of time needed for each step. Because the process is largely sequential, the throughput time per trailer can be estimated by adding up the average required time of each step. Multiplying the number of receiving lines by the time they are available in a day gives the total processing time available. This can be divided by the throughput time to estimate the capacity Barax has. Next Barax can calculate takt time. Takt time establishes the steady rate at which a completed product needs to be finished. Demand establishes the takt time given some level of resources.

In order to provide insight into the receiving process Barax can implement some inbound processing measures. Some measures which can be used are:

• Days workload pending in yard. This reflects the number of receiving days the trailers in the yard represent.

• Percent of materials or trailers received by ASNs. This reflects how well this facility is removing paperwork and transactions from the receiving process.

• Percent of material bypassing inspection. This reflects the amount of material not subject to inbound inspection.

• On-time arrivals. This includes a comparison of on-time material deliveries from suppliers and carries compared to a promised delivery time.

• Supplier quality discrepancies. This reflects any defects other than late arrivals received from suppliers.

• Average total system time per trailer. This represents the total elapsed time for trailers from receipt into the yard through completed processing at receiving.

• Average processing time per trailer. This represents the total elapsed time from placing a trailer at an inbound line through processing.

• Direct labor hours per trailer. This tracks the direct labor hours required to process an inbound trailer.

• Percent of trailers moving directly to the receiving dock. This reflects the percent of...