Abstract Today’s business environment involves a globalised market, greater than before competition and more challenging customers, all factors which contribute to higher uncertainty and variability. Manufacturing flexibility is becoming more important in order to cope with the complexity of products through frequency volume changes and evaluations of the technological requirements of products. The research for this thesis was performed within a subcontractor company, Laserkraft AB, who focus on laser cutting, turning and welding processes in their production. The company utilises a variety of volume and product mixes, which is in correlation with the objective of this study. The purpose of this research was to investigate the common source drivers in order to achieve volume and product mix flexibility on batch production systems. First, a literature review was conducted in order to build the framework of common source factors between volume and product mix flexibility. Then, a single case study was conducted to examine the outcomes of framework on batch production. In this case, qualitative techniques included interviews and an observation of the shop floor. The analysis of this study was conducted with empirical research on a case study and theoretical framework from literature. From the literature stand point; it was found that flexible manufacturing competencies (FMC) and strategic flexibility approaches are two main elements to determine internal source drivers between volume and product mix flexibility. The groups of common source factors were then analysed with respect to characteristics of batch production systems at the chosen company. A comparison between the framework and the empirical findings identified source drivers in order to achieve volume and product mix flexibility. Due to the limited nature of the study, all source factors that have an impact on achieving volume and product mix flexibility might not be presented in this thesis. Besides, it is difficult to generalise the result on a single case study. As a result, each organisation and industry refers to their product, process and type of layout, and requires a group of practices to achieve volume and product mix flexibility. This thesis concludes with the top three common source factors between volume and product mix flexibility such as: set-up time reduction, multi-trained employees and advanced manufacturing technology.

The objective of this thesis is to demonstrate the use of the Activity-Based Costing (ABC) approach together with the Theory of Constraints (TOC) philosophy in determining the optimal product-mix and restrictive bottlenecks of a company. The contribution of this thesis is a new product-mix decision model that uses activity-based cost information. This new model is proposed to be used with the TOC philosophy in order to improve the financial performance of a company.</p> Four case studies, all of which are based on hypothetical data, are prepared in this research to show the applicability of the proposed model in different manufacturing environments. Specifically, the first case study shows that the conventional product-mix decision model and the model developed in this thesis can give significantly different results regarding the best product-mix and associated bottlenecks of a company. The second case study demonstrates the use of the proposed product-mix decision model in a complex manufacturing environment. Specifically, this case study shows how companies should consider alternatives such as activity flexibility and outsourcing to improve their profitability figures. The third case study is an extension of the second case study, and it is prepared to illustrate that the proposed model can be extended to include more than one time period. The final case study demonstrates the applicability of the proposed model in a lean manufacturing environment.</p> Using the proposed model developed in this research will give managers more accurate information regarding the optimum product-mix and critical bottlenecks of their companies. By applying the TOC philosophy based on this information, managers will be able to take the right actions that will improve the profitability of their companies. Specifically, they will be able to observe the effects of several alternatives, such as activity flexibility and outsourcing, on the throughput of the whole system. In addition, the proposed model should help managers to prevent making decisions that sub-optimize the system. This may occur, for example, when using only the most efficient methods to produce each product even though the capacities of these methods are limited and some other less efficient methods are currently available in the company. By extending the model to include more than one time period, managers will be able to estimate the potential bottlenecks and the amount of idle capacities of each non-bottleneck activity performed in the company ahead of time. This information is powerful and can give companies a substantial advantage over their competitors because the users of the new model will have enough time to improve the performance of their potential bottlenecks and to search for more profitable usage of excess capacities before the actual production takes place. / Master of Science

A definição do mix de produção proporciona a alocação dos recursos produtivos no processo de manufatura, visando a otimização da sua utilização e do desempenho do sistema produtivo o que, por sua vez, em um nível gerencial, norteia a performance da organização. Entretanto, apesar de sua importância, a definição do mix de produção é um problema do tipo NP-Completo, ou seja, de difícil solução. Assim, com o auxílio da Teoria das Restrições - TOC, muitas heurísticas construtivas têm sido apresentadas para fazer frente a esse problema. Nesse sentido, o objetivo deste trabalho é propor uma nova heurística, denominada TOC-SN, baseado na TOC e no problema da mochila, que proporcione melhores soluções quando comparada com as principais heurísticas apresentadas na literatura, a TOC-h de Fredendall e Lea e a TOC-AK de Aryanezhad e Komijan. Para realização dessa comparação foram realizadas experimentações computacionais visando identificar o mix de produção que possibilitasse o maior ganho possível, em situações nas quais não há recursos disponíveis para produção de todos os produtos. Como resultado, observou-se que a TOC-SN obteve uma solução mais satisfatória quando comparada à aplicação das outras heurísticas e à solução ótima o que, em conclusão, evidencia a sua importância na definição de mix de produção. / The product-mix decision make possible to distribute the resources in the manufacture process, with the objective of optimizing the use of the resources and the performance of the productive system. This problem is well-known for being NP-Complete and therefore, most contributions to the topic focus on developing heuristics able to obtain good solutions for the problem in a short CPU time. Then, the objective in this thesis is to propose a new constructive heuristic or the TOC-SN based on the Theory of Constraints - TOC and on the Knapsack Problem that indicates better solutions than the TOC-h heuristic proposed by Fredendall and Lea and the TOC-AK heuristic proposed by Aryanezhad and Komijan. Experimentation computational was accomplished with the objective of testing the heuristics in the definition of product mix that made possible the best throughput in situations with scarcity of productive resources. The computational results indicate that the proposed heuristic obtains better results than the existing heuristic.

Made available in DSpace on 2015-04-22T22:11:15Z (GMT). No. of bitstreams: 1 Ana Claudia Moxoto.pdf: 748499 bytes, checksum: 79ddfb97f7a28eaddce5f2a8804814ff (MD5) Previous issue date: 2009-12-11 / Coordenação de Aperfeiçoamento de Pessoal de Nível Superior / One of the management decisions more complex and important to the success of the company is determining the mix of products to be sold and manufactured. The product mix directly influences business competitiveness. The information system of management accounting to make the connection between the actions of local managers and profitability. It is necessary that this measure properly the impact of local decisions on the overall performance of the organization. This study aimed to verify the implementation of Accounting Earnings, tool of the Theory of Constraints (TOC), to calculate the result of a financial company in the metallurgical industry, trying to analyze the relevance of it in management decisions. For teaching purposes, the simulations were done through scenarios which examined the various proposed solutions to the problems encountered, such as determining the mix of sales. It is possible that, by accounting earnings, decisions aimed at profitability and profitability of the company and due to the simple understanding by managers of production, can assist in making day-to-day manufacturing. Correctly measure the impact of local decisions on the overall performance / Uma das decisões gerenciais mais complexas e importantes para o sucesso da empresa é a determinação do mix de produtos a ser vendidos e fabricados. O mix de produtos influencia diretamente a competitividade empresarial. O sistema de informação de contabilidade gerencial deve fazer a conexão entre as ações locais dos gestores e a lucratividade da empresa. É necessário que este meça corretamente o impacto de decisões locais no desempenho global da organização. Objetivo deste estudo foi verificar a aplicação da Contabilidade de Ganhos, ferramenta da Teoria das Restrições (TOC), para apuração resultado do financeiro de uma Empresa do ramo metalúrgico, buscando analisar a relevância da mesma na tomada de decisões gerenciais. Para fins didáticos, as simulações foram feitas através de cenários onde se analisou as várias propostas de solução para os problemas encontrados, tal como determinação do Mix de Vendas. Verificou-se que é possível, através da contabilidade de ganhos, a tomada de decisões orientadas para rentabilidade e lucratividade da empresa. Esta ferramenta é de simples entendimento pelos gestores de produção, podendo assim auxiliar em decisões do dia-a-dia da manufatura

<p>Aim: The aim of the study is to analyze what product mix Fujitsu Services AB should focus on in the future. That is if they should focus on service and consulting, or hardware products, or a mix of them both? The following sub-questions have been used to answer the research question.What is the optimal mix between consulting and services, and hardware and where does Fujitsu create the most value? Where is the potential for the future? Where can Fujitsu Services AB generate the most growth? How superior is the current foundation, that the company is building its strategies on and what do they need to add? What are their capabilities and how can they best be explored?</p><p>Method: This study is a qualitative study with focus on Fujitsu Services AB where data has been collected through interviews with the leadership and management of the company with focus on how the company should carry on its business practices in the future.</p><p>Result and conclusions: The result from the study is that Fujitsu Services AB should keep a mix between the services, consulting and hardware. I have also come to the conclusion that they can improve in other areas such as its internal communication.</p><p>Suggestion for future research: Study of the change that the acquisition of Mandator will mean for Fujitsu Services AB</p><p>Contribution of the thesis: Give an inside look at a high-technology company that is going through changes and is trying to establish its brand and grow in a local and international market</p>

Aim: The aim of the study is to analyze what product mix Fujitsu Services AB should focus on in the future. That is if they should focus on service and consulting, or hardware products, or a mix of them both? The following sub-questions have been used to answer the research question.What is the optimal mix between consulting and services, and hardware and where does Fujitsu create the most value? Where is the potential for the future? Where can Fujitsu Services AB generate the most growth? How superior is the current foundation, that the company is building its strategies on and what do they need to add? What are their capabilities and how can they best be explored? Method: This study is a qualitative study with focus on Fujitsu Services AB where data has been collected through interviews with the leadership and management of the company with focus on how the company should carry on its business practices in the future. Result and conclusions: The result from the study is that Fujitsu Services AB should keep a mix between the services, consulting and hardware. I have also come to the conclusion that they can improve in other areas such as its internal communication. Suggestion for future research: Study of the change that the acquisition of Mandator will mean for Fujitsu Services AB Contribution of the thesis: Give an inside look at a high-technology company that is going through changes and is trying to establish its brand and grow in a local and international market

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In this study, the effect of inspection error on the product mix and quality projects selection in a manufacturing environment where rework and inspection errors exist is examined. It is assumed that the products (items) for which rework is necessary are reprocessed at a separate work center and 100% inspection is performed for the products both after rework and processing operations. Markov chain approach is used to compute yield and rework rates. In addition, nominal-the-best type of a quality loss function is used in computing quality loss due to products shipped to the customers. A linear programming (LP) model is developed to support the product mix and quality improvement project selection decisions. The use of LP model is demonstrated on an example problem. The results obtained under different experimental conditions are compared with solutions of a naive QI project selection method, improving the least capable process. The analysis shows that developed LP model is relatively better than process capability approach. Besides, according to the results obtained under different experimental conditions, the factors that have significant effect on throughput and QI project selection are being determined.

A definição do mix de produção proporciona a alocação dos recursos produtivos no processo de manufatura, visando a otimização da sua utilização e do desempenho do sistema produtivo o que, por sua vez, em um nível gerencial, norteia a performance da organização. Entretanto, apesar de sua importância, a definição do mix de produção é um problema do tipo NP-Completo, ou seja, de difícil solução. Assim, com o auxílio da Teoria das Restrições - TOC, muitas heurísticas construtivas têm sido apresentadas para fazer frente a esse problema. Nesse sentido, o objetivo deste trabalho é propor uma nova heurística, denominada TOC-SN, baseado na TOC e no problema da mochila, que proporcione melhores soluções quando comparada com as principais heurísticas apresentadas na literatura, a TOC-h de Fredendall e Lea e a TOC-AK de Aryanezhad e Komijan. Para realização dessa comparação foram realizadas experimentações computacionais visando identificar o mix de produção que possibilitasse o maior ganho possível, em situações nas quais não há recursos disponíveis para produção de todos os produtos. Como resultado, observou-se que a TOC-SN obteve uma solução mais satisfatória quando comparada à aplicação das outras heurísticas e à solução ótima o que, em conclusão, evidencia a sua importância na definição de mix de produção. / The product-mix decision make possible to distribute the resources in the manufacture process, with the objective of optimizing the use of the resources and the performance of the productive system. This problem is well-known for being NP-Complete and therefore, most contributions to the topic focus on developing heuristics able to obtain good solutions for the problem in a short CPU time. Then, the objective in this thesis is to propose a new constructive heuristic or the TOC-SN based on the Theory of Constraints - TOC and on the Knapsack Problem that indicates better solutions than the TOC-h heuristic proposed by Fredendall and Lea and the TOC-AK heuristic proposed by Aryanezhad and Komijan. Experimentation computational was accomplished with the objective of testing the heuristics in the definition of product mix that made possible the best throughput in situations with scarcity of productive resources. The computational results indicate that the proposed heuristic obtains better results than the existing heuristic.

Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: Product Mix Complexity is a very real issue in modern companies. As globalisation and competition increase, markets mature and the needs of individual consumers get ever more specific, the trend towards more product variety will grow. Product Mix refers to the full range of products that a company offers to its customers. Product Mix Complexity refers to the effect that this product variety has on organizational performance. Understanding and management of this problem is difficult due to the many organizational elements involved, the complicated relationship between these elements and the fact that the problem crosses functional organization boundaries. A company may choose to differentiate itself in the market by offering a broad product mix. To do this effectively the price that can be asked for an item must offset the additional costs brought on by this complexity. This balance between variety that drives sales, and the costs of the added complexity is at the core of the effective management of Product Mix Complexity. The effect of this complexity in manufacturing relates to the loss of scale efficiencies and the need for flexibility in operations. Due to the difficulty in understanding the complex effects of variety, company portfolios tend to proliferate, resulting in a very skewed spread of product contributions where a small % of products contribute a high proportion of company profits. Management processes that continuously evaluate the total profitability of their portfolios from a ‘cost of complexity’ point of view are needed. Cost accounting systems often do not accurately account for this cost of complexity. The effects of Product Mix Complexity are investigated in Cadbury South Africa. The business displays clear signs of having a classical ‘Pareto’ spread of products where a ‘long tail’ of small volume products add very little profit to the business. The Port Elizabeth factory is an above average complex plant within the Cadbury group. It was found that the cost allocation system employed by Cadbury is not accurately allocating costs to products and is thereby aggravating the proliferation of the Cadbury product portfolio. Potential savings by rationalizing the Cadbury product portfolio are identified. A number of recommendations to better manage the presence of Product Mix Complexity are made, both for the business as a whole and for manufacturing specifically. / AFRIKAANSE OPSOMMING: Produkmengselkompleksiteit is alomteenwoordig in moderne besighede. Die neiging tot meer produkverskeidenheid groei namate globalisering, kompetisie en verbruikers se behoeftes na verskeidenheid toeneem. ‘Produkmengsel’ verwys na die volle reeks produkte wat ’n maatskappy aan die mark bied. ‘Produkmengselkompleksiteit’ verwys na die effek wat produkverskeidenheid het op die doeltreffendheid van ’n besigheid. Die probleem is moeilik om te definieer en te verstaan as gevolg van die baie besigheidselemente wat betrokke is, die komplekse verhoudinge tussen hierdie elemente en die multi-funksionele aard van die probleem. Vir strategiese redes wil ’n maatskappy soms ’n groot verskeidenheid produkte aanbied om hom te onderskei in die mark. Om hierdie strategie winsgewend te maak moet die prys wat behaal word opmaak vir die ekstra kostes wat aangegaan word om die breë verskeidenheid te kan aanbied. Die balans tussen die interne koste van verskeidenheid en die voordeel van die verskeidenheid is baie belangrik in die effektiewe bestuur van produkmengselkompleksiteit. Omdat die effek van verskeidenheid moeilik is om te definieer, neig maatskappye daarna om liewer te veel as te min produkte aan te bied. Die gevolg is dikwels ‘n ongebalanseerde distribusie van produkwinsgewendheid waar ’n klein persentasie produkte verantwoordelik is vir die oorgrote meerderheid van die wins. Bestuursprosesse wat produkportefeuljes vanuit ‘n kompleksiteitskoste oogpunt evalueer ontbreek dikwels. Produkkostemodelle neem ook dikwels nie hierdie koste akkuraat in ag nie. Die effek van produkmengselkompleksiteit in Cadbury Suid-Afrika word in hierdie studie ondersoek. Dit is duidelik dat Cadbury Suid-Afrika ’n klassieke ‘Pareto’ effek vertoon waar ’n lang stert van klein produkte baie min tot besigheidswins-gewendheid bydra. Die Port Elizabeth fabriek vertoon ook bogemiddelde kompleksiteit relatief tot ander Cadbury fabrieke. Kompleksiteitskostes word nie akkuraat toegedeel tot produkkostes nie, met die gevolg dat klein produkte aanhoudend tot die produkmengsel gevoeg word. Die potensiële besparings as gevolg van rasionalisasie van die produkportefeulje is bereken. Aanbevelings vir die beter bestuur van produkmengselkompleksiteit word gemaak vir die besigheid as ’n geheel en vir vervaardiging spesifiek.