Funnel Theorem And Priority Assignment In Production Orders To Reduce Order Cycle Time In The Logistic Process

This paper presents a novel proposal, the funnel theorem, which comprehensively analyzes manufacturing processes. It integrates supplier data, raw materials management in transit, internal materials management, process quality, and workmanship. This unique approach provides a fresh perspective on productivity in manufacturing. When analyzing transit time, from when the customer places their purchase order until they receive their finished product, a series of events occur that are only sometimes well controlled in manufacturing. The organization's systemic vision, added to the growing use of tools based on ERP concepts, visualizes the impact of these variables on delivery times. Added to this analysis is the variable called priority of purchase orders, which affects how the raw material is assigned to the orders that are formed according to said priority to form, in turn, production orders. The culmination of this research is the development of a practical algorithm, TWCD (Two-way commitment date). This algorithm enables the calculation of optimal raw material quantities based on the plant's productivity and the order's priority. This application can significantly improve the efficiency of manufacturing processes, leading to reduced order cycle times and increased operational excellence. © 2024, Publish-Ing in cooperation with TIB - Leibniz Information Centre for Science and Technology University Library. All rights reserved.

Funnel Theorem And Priority Assignment In Production Orders To Reduce Order Cycle Time In The Logistic Process Academic Article in Scopus