Abstract
In 1985, AT&T's Denver Works initiated several programs designed to give the company a competitive edge in the private-branch exchange (PBX) business. Because Denver assembles systems to suit customers' orders, the goals of the programs were particularly challenging: reduce manufacturing costs, improve product quality, and shorten manufacturing intervals. As a base for improving all its operations, Denver implemented a computer-based material planning and control system, whose central activity was material requirements planning (MRP). Shop-floor processes and storeroom operations were evaluated, simplified, and integrated with the MRP system. Today, Denver's storerooms maintain minimal inventories, yet supply components and subassemblies to the shops exactly when needed to maintain the production schedules. New procedures speeded the flow of materials to the shops and final-assembly areas. Improved testing procedures at all stages increase manufacturing yields for circuit packs, equipment, and final systems. These improvements have reduced the manufacturing interval to 1 month.
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