This paper builds a quantitative model, which is a result of a combination of System Dynamics (FORRESTER, 1962) and Factory Physics (HOPP; SPEARMAN, 2001) approaches aiming to examine how six Continuous Improvement (CI) programs (arrival variability, process variability, quality (defect rate), time to failure, repair time, and set up time), together with lot size reduction, affect Work In Process (WIP) and Utilization in a multi-product, single-machine environment. Results of the paper provides support for: i) the importance of implementing set up reduction programs; ii) Lean Manufacturing (LM) philosophy regarding the implementation of small CI programs in a lot of variables and areas of the shop floor; iii) Quick Response Manufacturing (QRM) philosophy regarding the importance of managers to know the convex relationship between lot size and WIP in order to decide the amount of lot size reduction to be performed on shop floor; iv) the choice between alternative CI programs.
Lot Size; Continuous Improvement; Work In Process; Utilization; System Dynamics; Factory Physics
