Jit for Healthcare

4 April 2017

Analysis Rob Wehrman, Manager, 3M Supply Chain Optimization & Modeling Expertise Center 3 Agenda Introduction Basics Concepts in Supply Chain and Manufacturing Just-in-Time Manufacturing Concepts Warehouse and Transportation Considerations Conclusions Questions © 3M 2006 All Rights Reserved 3 General Supply Chain Processes Demand Information Material Flow Material Flow Material Flow Typical Supply Chain Network Model Supplier Manufacturing Distribution Customer Delay Delay Delay Planning Planning Planning Planning Forecasted Demand and/or Orders Information

Planning Types of Manufacturing Processes: Batch Most prevalent Planned quantity of one product Many different products made on same equipment Economic situation determines an optimal batch size Products are run in a logical sequence to optimize process Lead time includes waiting in queue and processing time © 3M 2006 All Rights Reserved 3 Types of Manufacturing Processes: Flow Not as prevalent Single product production Very low variability Equipment usually runs at a steady pace Lead time is short as product is available all the time Capacity is expensive and hard to increase 3M 2006 All Rights Reserved 3 Manufacturing Capacity Usually fixed at a rate determined by equipment

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