Engineering Planning Purchasing Production

Management Principle for Operational Excellence

Engineering Planning Purchasing Production

The due date for each function is determined by delivery date, total tasks and processing times.

Management Principle for Operational Excellence

Due Date

Engr

Due Date

Plan

Due Date

Purc

Due Date

Prod

Delivery Date XX/XX/XX

Engineering Planning Purchasing Production

Resources are allocated according to the due dates. Functions with low capacity will slow down the

line and eventually become “bottleneck”.

LOW

MEDIUM

HIGH

CAPACITY LEVEL

LOW

MEDIUM

HIGH

CAPACITY LEVEL

LOW

MEDIUM

HIGH

CAPACITY LEVEL

LOW

MEDIUM

HIGH

CAPACITY LEVEL

Management Principle for Operational Excellence

Engineering Planning Purchasing Production

Engineering shall continue to support other functions even when the design is already done

because issues may arise later.

Sample Issue: Parts don’t fit

together

Sample Issue: Clarification of Material and

Quantity Needed

Released Data: Drawings

Documents

Sample Issue: Material is no

longer available

Management Principle for Operational Excellence

Engineering Planning Purchasing Production

• Required resources are set in order for all the functions to satisfy their due dates and ultimately meet the delivery date by balancing the line.

• Resources may be reduced along with processing times for an increase in profit.

• Insufficient resources will impact both on time delivery and quality of products.

Management Principle for Operational Excellence