A parts factory in Vietnam moves from big batches to flow
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The prompt
A factory in Bac Ninh, Vietnam makes 2,000 electronic parts a day. Because each step makes big batches, about 40,000 half-finished parts sit between steps at any time, each worth USD 5 of materials and work. By making small batches and passing them straight on, it can cut this to 10,000. Use a carrying cost of 22 percent a year. What does flow gain? (Fictional factory, illustrative figures.)
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