At lower levels of focus such as workcells or lines, increased focus generally brings greater utilization. The chart above shows this. It comes from a study of similar packaging lines in various German companies. As the number of package sizes increase from 1 to 7, utilization drops from 90% to 30%.

This effect is counter-intuitive. One might imagine that if all lines could produce all products, the variability in customer demand for each product would be better accommodated and overall utilization increased.

However, the intangible problems of changeovers, learning curves and broader process knowledge required by all workers counteracts the effects of spreading the variability.

This study supplements the experience and literature of Cellular Manufacturing. Focus at this level simplifies the process and allows workers and mangers to apply their skills to a narrower set of problems.

Adapted from: Hayes, Robert H., & Wheelwright, Steven C., Restoring Our Competitive Edge, Wiley, 1984

Other Studies

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Reduced Overhead In Focused Factories
Multi-Division Companies
Steel Foundry Focus
Basic Metals
Workcell Level Focus