ABSTRACT
In this chapter, the authors discuss the various plant layouts that exist in today's manufacturing companies. Like all configurations, “A” plants have certain defined and predictable characteristics and potential consequences. As the single-point measurement location, the control point can be used to track both productivity and financial measures. Productivity can be measured in terms of throughput based on the number of units that pass through a control point. Probably one of the most important and least understood concepts of product pricing is the product octane. The greater the Throughput numbers, when Operating Expenses are subtracted, then the greater the profit margin. In conjunction with Volume and Octane, consider the Lead Time through a system. Fast-moving products with higher Volumes and an exceptional Octane rating can be a gold mine. Be bold and consider the VOLT concept.
