The Effect of Converting Workshop System into Production Line System on Production Lead-time and Raw Materials’ Consumption

Abstract

This paper aims to analyze the impact of converting production workshop system into production line system on production lead-time and raw material consumption. We apply a case study approach on Secured Food Company specialized in chocolate biscuits. The average of raw materials consumption and requested commands lead times were compared between two years: 2012 when the adopted production system was based on workshop system and 2020 when the production system was converted to production line system. We find that this shift has resulted in a large decline in production lead-time but in only a slight decrease in raw materials consumption. Hence, we recommend adopting production line system if there is a sufficient demand. Otherwise, production stations must be placed in a U shape to reduce distances and lead times.