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Lecture 4. Production Logistics. Course Logistics 10. February, 22 th 2010 Hessel Visser. Production Logistics Course Overview. Overview PRoduction Logistics course. Introduction from Production Orientation to Customer Relations

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Lecture 4

Production Logistics

Course Logistics 10

February, 22th 2010 Hessel Visser

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Production Logistics Course Overview

Overview PRoduction

Logistics course

  • Introduction from

    Production Orientation to Customer Relations

  • Just in time effects film from Push to Pull by Hewlett Packard

  • The way to Lean Manufacturing

  • The case MOBA egg sorters

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Brief History of the Model TAfter 20 years of experimentation, Henry Ford finally saw the fruits of his labour in October of 1908 with the Model T. This was the vehicle he had wanted to build since his first Model A in 1903

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In October of 1913, mass production of the automobile began. Ford had previously organized workers and components to enhance the production of the Model T, but the moving assembly line quickly improved the speed of chassis assembly from

12 hours and 8 minutes to

1 hour and 33 minutes.

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In 1914 Ford produced 308,162 cars, which was more than all other auto manufacturers combined.

It was also in 1914 that the Model T, in the interest of streamlining the production process, was no longer available in black, red, blue, green or grey; it was now available in "any colour so long as it is black."

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2.000.000/Year other auto manufacturers combined.

$ 850.-


$ 260.-




Mass production did allow for flexibility in the price tag. Henry Ford introduced the Model T at $850 for the Touring Car, but by October of 1924, he was able to offer the Runabout for as low as $260. Few things other than the price ever changed on the Model T



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The Vision of “Lean” in the USA other auto manufacturers combined.

  • Perhaps best stated by James Womack, and Daniel Jones in two popular books…

  • The Machine That Changed the World (1990)

  • Lean Thinking

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What has been changed in car industry? other auto manufacturers combined.

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Evolution of manufacturing systems other auto manufacturers combined.


Supply Chain Management


Enterprise Resources Planning


Manufacturing Resources Planning


Material Requirement Planning


Statistic Inventory Control






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Stockless Production other auto manufacturers combined. From Push to Pull

  • At HP there was in 1983 a division which wanted to make a change over from Push to Pull.

  • It was the Greely Colorada Division

  • They made Disc Units

  • Their goal was to get a batch quantity of one piece

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The Film Stockless Production other auto manufacturers combined.

Be aware of the problems in this simulated production line.

Don’t look only to the working procedures.

Watch to the people themselves.

Write down all what you find remarkable.

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Produce and Package the Box other auto manufacturers combined.

Halve a box

Box with wire stich

Box with sticker

Sticker on box

Tape it

To Pack

To Stitch

To sticker

Box in the Box

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Performance-Indicators 1 other auto manufacturers combined.

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Results at HP other auto manufacturers combined.




Work on Hand



1,2 months


2,5 days



2,8 months

4000 m2

5 days


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The Kaizen umbrella other auto manufacturers combined.


aimed at customer total quality care robots production circle suggestion box automation work area discipline TPM (total productive maintenance)

kanban quality improvement just-in-time 0-fault activities of small groups cooperation of management and employees improving productivity development of new products

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CASE MOBA egg-sorters other auto manufacturers combined.

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Moba market position other auto manufacturers combined.

  • World-wide market leader in egg grading equipment

  • Market share > 60%

  • Export > 90%

  • Major markets:

    • Europe

    • Asia & Australia

    • Japan

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Company information other auto manufacturers combined.

  • Founded 1947

  • Main office Barneveld

  • 43,000 m²

  • Subsidiaries in USA, UK, Asia and Japan

  • 280 employees

  • 50 employees R&D

  • € 60 million revenue

  • PBT > 10%

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Company information other auto manufacturers combined.

  • Marketing & Sales

  • Research & Development

  • Engineering

  • Manufacturing

  • Assembly

  • Service

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Products other auto manufacturers combined.

  • Automatic graders up to 180,000 eggs/h

  • Auto candling technology

  • Farm packers

  • Container handling

  • Automatic packaging

  • Software for track and trace

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Auto candling technology other auto manufacturers combined.

  • Crack (24 hits per egg)

  • Dirt (4 pictures per egg)

  • Blood (Xenon light)

  • Weighing

  • Leaker detection

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MOBA other auto manufacturers combined.

How did it look in 2000?

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Why do we have to change other auto manufacturers combined. ?

Misfit between market requirements and internal capabilities:

  • time to market unacceptable (R&D)

  • customer specific configurations tend to be more complex (from machine to system)

  • delivery times very long

  • high warranty costs

    => Monopolist behaviour <=

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Situation early 2000 other auto manufacturers combined.

  • Centralised organisation

  • Responsibilities diffuse

  • Bad mentality and de-motivated crew

  • Outdated production equipment

  • Dirty working places

  • Implementation BaaN very complex and time and labour consuming

  • Inflexible planning and control

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Seven Categories of Waste other auto manufacturers combined.

  • Overproduction

  • Waiting and Queues

  • Unnecessary Transport

  • Bad Processes

  • Inventories

  • Unnecessary Personal Movements

  • Lack of Quality

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What does 5 S mean? other auto manufacturers combined.

The 5 S are translated from Japanese to English and Dutch:

  • Seiri /Sort / Selecteren en Scheiden

  • Seiton /Set in order / Schikken en Sorteren

  • Seiso /Shine / Schoonmaken en Schrobben

  • Seiketsu/ Standardise / Systematiseren, Standaardiseren en structureren

  • Shitsuke /Sustain / Stimuleren en Stijlvol werken/

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Total results at MOBA other auto manufacturers combined.

  • Sheet metal lead time 9 weeks tot 1

  • Less space in stock room from

  • 4200m2 to 1700m2

  • 40 % shorter lead time overall

  • Better quality: almost no scrap

  • Easier handling

  • More profit