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Operational tactics at a Nortel Networks plant: cycle time and inventory issues

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  • Albert Chan, Venus P. Chan, Ahmet Satir, Vincent J. Thomson, Patrice Treguier

Abstract

Increased competition through globalisation, coupled with increasing complexity and uncertainty in the marketplace, is challenging companies to deploy various operational tactics. Three widely used manufacturing cycle time and inventory reduction tactics are evaluated at a Nortel Networks plant, namely, setup reduction, non-value added time reduction and lot size adjustment. A computer simulation with actual data from company operations was used to study and evaluate the different tactics for an assembly line. We illustrate the possibility of achieving up to 88% reduction in cycle time and up to 19% savings in inventory costs. The impact of reduced cycle time on selected raw material component groups is also evaluated. Field implementation of the study is discussed with respect to industrial and pedagogical applications.

Suggested Citation

  • Albert Chan, Venus P. Chan, Ahmet Satir, Vincent J. Thomson, Patrice Treguier, 2002. "Operational tactics at a Nortel Networks plant: cycle time and inventory issues," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 4(6), pages 504-520.
    • Handle: RePEc:ids:ijmtma:v:4:y:2002:i:6:p:504-520
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