Comments on: Should You Split Your Production System into Two?

By: Jason Klemm

Jason Klemm — Wed, 05 Oct 2022 19:45:31 +0000

Hi Patrick, I really enjoyed your post about the pros and cons of splitting up your production system into 2. Personally, I think the idea of splitting production this way can be better in a variety of situations. Smaller batches and more lean processes can help companies create more efficient manufacturing processes. I also liked how you brought up that splitting the production systems, and them closer to the customer who will receive the product can help reduce delivery expenses if done correctly. In your experience, have you seen any specific instances where splitting the production line would be beneficial? Also, on the other hand, have you seen any that would not benefit from this?

By: Matthew Byrne

Matthew Byrne — Tue, 27 Sep 2022 18:41:59 +0000

This article helped me understand the pros and cons of a single line vs. two or more separate independent production lines. I think an advantage of two lines is that it increases a factory’s value added space. If a company has non-value added space, they should try to add value there. For example, a factory can create more value by decreasing the warehouse space and creating more production lines, this would increase value added space. It was also interesting to read about the difference in fluctuations between a single line vs. two separate and how two will have twice the production volume. In my opinion, the key advantage of a single line is the benefits from the economies of scale. It is hard to decide what method is best, but it is important to consider all factors listed in this article.

By: Luis

Luis — Mon, 26 Sep 2022 20:46:52 +0000

Good article! Thanks for sharing.
There are more considerations to the typical challenge of “we need to make more widgets!”. I would like to start with the constraint(s). Using, for example, an operator/machine balance chart or Yamazumi and determine how those constraints are removed. In my experience, many capacity gains are achieved with only a few changes in the line and not necessarily an entirely new line. Also, as commented earlier, the type of products may dictate the actions. For example, using the ABC approach, you may be able to move some of the slower movers (BorC) to a different smaller cell, therefore, increasing the output of the A products or, if there is a commonality in the sub-assemblies, perhaps a kanban system will allow you to increase your final production output by maintaining smaller cells running all the subassemblies to meet the kanban quantities. But then, if the additional production line investment is inevitable, the financial and risk aspects come into play. Many companies want to minimize the risk of supply disruption until they see the price tag of duplication of production lines or facilities. Of course, this cost is far less than losing revenue due to, for example, a natural disaster or the next pandemic.

By: Christoph Roser

Christoph Roser — Sat, 24 Sep 2022 05:23:17 +0000

Good point, Patrick. Two different locations (countries, continents) make production more robust against outside disruption like diaster, war, or politics.

By: Patrick Renaux

Patrick Renaux — Fri, 23 Sep 2022 10:30:21 +0000

Thanks for this interesting article.
I think that 2 sites of production or 2 lines in same facility are 2 different topics as advantages and disadvantages are different (i.e. customer intimacy, customer delivery).
However, there is a common aspect. Indeed, Capex intensive equipment or scarce skills would benefit from mutualization in both cases. Consequently, there is a cost and performance benefit to isolate these critical activities from the lines to avoid duplication. Moreover, a reduced variability would generate better usage of the scarce ressources. On the other hand, positive impact on inventory could be offset by synchronization issues as operation will usually address it with safety stock.
Regarding noncritical activities, investment on 2 lines at different period give opportunity to adjust capacity ramp up to sales growth and eventually to phasing out. Replacement or upgrading cost would also be distributer on longer period.

By: Julia Newell

Julia Newell — Tue, 20 Sep 2022 21:15:06 +0000

Great post!

These are all factors that would either add or subtract value from your supply chain, depending on the circumstance. I liked how in the initial situation section, it was mentioned how your product variation plays a major role in this decision. If you are a company with a large set of offerings, it may be in your best interest to have a multi-production system in order to cut lead times and save overall costs.