IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v37y2007i2p108-119.html
   My bibliography  Save this article

Ball Aerospace Explores Operational and Financial Trade-Offs in Batch Sizing in Implementing JIT

Author

Listed:
  • Peter McKenzie

    (Phelps-Dodge Bagdad, Inc., PO Box 7, Bagdad, Arizona 86321)

  • Shekhar Jayanthi

    (Lally School of Management and Technology, Rensselaer Polytechnic Institute, Troy, New York 12180)

Abstract

Ball Aerospace, which manufactures highly innovative products, recently implemented a just-in-time (JIT) manufacturing system to reduce costs, improve lead times, and enhance customer satisfaction. The company manufactures under customer requirements that dictate the timing and quantities of sales. In the first phase of our study, we used value stream mapping (VSM), a precursor to implementing JIT, for two products in the company’s advanced antenna and video systems division. Using this approach, we reduced the lead times and identified opportunities for improvement in the manufacturing facility. In the second phase, we quantified the trade-off between operational and financial considerations of the JIT implementation. Using detailed data from the facility, we analyzed these trade-offs by investigating batch-sizing decisions under different types of demand patterns. Our analysis provided the company with the input it needed to make resource-allocation decisions and current and planned process improvements under changes in external demand.

Suggested Citation

  • Peter McKenzie & Shekhar Jayanthi, 2007. "Ball Aerospace Explores Operational and Financial Trade-Offs in Batch Sizing in Implementing JIT," Interfaces, INFORMS, vol. 37(2), pages 108-119, April.
    • Handle: RePEc:inm:orinte:v:37:y:2007:i:2:p:108-119
    DOI: 10.1287/inte.1060.0281
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.1060.0281
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.1060.0281?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marshall Fisher & Kamalini Ramdas & Yu-Sheng Zheng, 2001. "Ending Inventory Valuation in Multiperiod Production Scheduling," Management Science, INFORMS, vol. 47(5), pages 679-692, May.
    2. Marshall Fisher & Ananth Raman, 1996. "Reducing the Cost of Demand Uncertainty Through Accurate Response to Early Sales," Operations Research, INFORMS, vol. 44(1), pages 87-99, February.
    3. Harvey M. Wagner & Thomson M. Whitin, 1958. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 5(1), pages 89-96, October.
    4. Evan L. Porteus, 1985. "Investing in Reduced Setups in the EOQ Model," Management Science, INFORMS, vol. 31(8), pages 998-1010, August.
    5. J Betts & R B Johnston, 2001. "Just-in-time replenishment decisions for assembly manufacturing with investor-supplied finance," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 52(7), pages 750-761, July.
    6. Evan L. Porteus, 1986. "Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction," Operations Research, INFORMS, vol. 34(1), pages 137-144, February.
    7. Vishal Gaur & Sridhar Seshadri, 2005. "Hedging Inventory Risk Through Market Instruments," Manufacturing & Service Operations Management, INFORMS, vol. 7(2), pages 103-120, April.
    8. William Beranek, 1967. "Financial Implications of Lot-Size Inventory Models," Management Science, INFORMS, vol. 13(8), pages 401-408, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Guoli & Li, Feng & Yang, Xianyan & Qiu, Shuang, 2020. "The multi-stage multi-product batch-sizing problem in the steel industry," Applied Mathematics and Computation, Elsevier, vol. 369(C).
    2. Máté Hegyháti & Krisztián Attila Bakon & Tibor Holczinger, 2023. "Optimization with uncertainties: a scheduling example," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 31(4), pages 1239-1263, December.
    3. Michael F. Gorman & Jayden Hoff & Robert Kinion, 2009. "ASP, The Art and Science of Practice: Tales from the Front: Case Studies Indicate the Potential Pitfalls of Misapplication of Lean Improvement Programs," Interfaces, INFORMS, vol. 39(6), pages 540-548, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diaby, Moustapha, 1995. "Optimal setup time reduction for a single product with dynamic demands," European Journal of Operational Research, Elsevier, vol. 85(3), pages 532-540, September.
    2. Charles, Mehdi & Dauzère-Pérès, Stéphane & Kedad-Sidhoum, Safia & Mazhoud, Issam, 2022. "Motivations and analysis of the capacitated lot-sizing problem with setup times and minimum and maximum ending inventories," European Journal of Operational Research, Elsevier, vol. 302(1), pages 203-220.
    3. Kajjoune, Oussama & Aouam, Tarik & Zouadi, Tarik & Ranjan, Ravi Prakash, 2023. "Dynamic lot-sizing in a two-stage supply chain with liquidity constraints and financing options," International Journal of Production Economics, Elsevier, vol. 258(C).
    4. Suárez, Freddy F. & Cusumano, Michael A., 1954- & Fine, Charles H., 1991. "Flexibility and performance : a literature critique and strategic framework," Working papers 3298-91., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    5. Sarker, Bhaba R. & Coates, Eyler Robert, 1997. "Manufacturing setup cost reduction under variable lead times and finite opportunities for investment," International Journal of Production Economics, Elsevier, vol. 49(3), pages 237-247, May.
    6. Jaber, Mohamad Y. & Bonney, Maurice, 2003. "Lot sizing with learning and forgetting in set-ups and in product quality," International Journal of Production Economics, Elsevier, vol. 83(1), pages 95-111, January.
    7. Sandun C. Perera & Suresh P. Sethi, 2023. "A survey of stochastic inventory models with fixed costs: Optimality of (s, S) and (s, S)‐type policies—Discrete‐time case," Production and Operations Management, Production and Operations Management Society, vol. 32(1), pages 131-153, January.
    8. Shi Chen & Hau Lee & Kamran Moinzadeh, 2016. "Supply Chain Coordination with Multiple Shipments: The Optimal Inventory Subsidizing Contracts," Operations Research, INFORMS, vol. 64(6), pages 1320-1337, December.
    9. Nguyen, Christine & Dessouky, Maged & Toriello, Alejandro, 2014. "Consolidation strategies for the delivery of perishable products," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 108-121.
    10. Freimer, Michael & Thomas, Douglas & Tyworth, John, 2006. "The value of setup cost reduction and process improvement for the economic production quantity model with defects," European Journal of Operational Research, Elsevier, vol. 173(1), pages 241-251, August.
    11. Guillermo Gallego & Ilkyeong Moon, 1995. "Strategic investment to reduce setup times in the economic lot scheduling problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(5), pages 773-790, August.
    12. Gong, Qiguo & Chen, Guohui & Zhang, Wen & Wang, Hui, 2022. "The role of humans in flexible smart factories," International Journal of Production Economics, Elsevier, vol. 254(C).
    13. Williams, William W. & Tang, Kwei & Gong, Linguo, 2000. "Process improvement for a container-filling process with random shifts," International Journal of Production Economics, Elsevier, vol. 66(1), pages 23-31, June.
    14. Richard Kum-yew Lai, 2005. "Inventory Signals," Microeconomics 0509001, University Library of Munich, Germany.
    15. Diaby, Moustapha & Cruz, Jose M. & Nsakanda, Aaron L., 2013. "Shortening cycle times in multi-product, capacitated production environments through quality level improvements and setup reduction," European Journal of Operational Research, Elsevier, vol. 228(3), pages 526-535.
    16. Gupta, Diwakar & Gerchak, Yigal, 1995. "Joint product durability and lot sizing models," European Journal of Operational Research, Elsevier, vol. 84(2), pages 371-384, July.
    17. L-C Lin & K-L Hou, 2005. "An inventory system with investment to reduce yield variability and set-up cost," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(1), pages 67-74, January.
    18. Wilco Van den Heuvel & Albert P. M. Wagelmans, 2010. "Worst-Case Analysis for a General Class of Online Lot-Sizing Heuristics," Operations Research, INFORMS, vol. 58(1), pages 59-67, February.
    19. Hong, Jae-Dong & Kim, Seung-Lae & Hayya, Jack C., 1996. "Dynamic setup reduction in production lot sizing with nonconstant deterministic demand," European Journal of Operational Research, Elsevier, vol. 90(1), pages 182-196, April.
    20. Gérard P. Cachon, 2012. "What Is Interesting in Operations Management?," Manufacturing & Service Operations Management, INFORMS, vol. 14(2), pages 166-169, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:37:y:2007:i:2:p:108-119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.