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- Опубліковано 22 бер 2018
- EOQ - Economic Order Quantity - Optimize Inventory - Simple Explanation of Concept of this LEAN Tool.
Practical explanation with classroom demonstration provided by Shruti Jindal, Aishwarya Bote, Gunjan Dokrimare, Swati Khedkar, Akash Tiwari under the guidance of Dr Shrinivas Gondhalekar (Dr G).
Please feel free to comment if you have any doubts with the explanation. I will be happy answer :)
Reducing costs by reducing changeover time thus making the production manager happy! Increasing variety.. thus making the marketing manager (and customer) happy too. It's a win-win. SMED has come to the rescue again 😀
Thank you sir and team, for explaining this so fully.
We'd seen the theoretical meaning and formula of EOQ many times before... But it feels great to understand the practical implication behind it... Thank you Dr.G and team for such a well-made video.
One more important concept of EOQ explained with clarity of methodology. Thank you Dr.G & team for such a simplified demonstration.
The concept of EOQ was explained so wonderfully by using an example which was so easy to understand. Thankyou Dr.G & his team.
Thank you Aishwarya, Shruti,Gunjan,Swati, Akash and sir for a wonderful video explaining EOQ practically.
EOQ is very important in manufacturing sector and this is the best explanations I have got, better than Engineering one. Thank you Sir.
Thank you sir for your efforts to explain EOQ. What I understood from this video is that by reducing the time for change over of process we can reduce the cost of EOQ.
Thank you Dr. G and team to explain the concepts practically. Demonstrations like these get engraved in students' minds when explained so well.
Before this video, whenever I thought about a manufacturing unit, I assumed (lets say for a pen company) that there would be different units for each colours. But after this, I can safely conclude that a particular design of pen of different coloure can be manufactured on a single machine with help of changovers and EOQ can be brought down. On learning this concept, I realised that we actually come across it on daily basis, for example, the vada pav stall! On a single stove, he first makes the vada, then changeover (in which he sieves out the remanants from oil) and then next type of bhajji is put. In one hour, he makes vada and bhajji and at least cater to 30 people. Amazing explaination sir.
Before this video I only knew how to calculate EOQ, but this video of yours made me understand the practical meaning of the same.. I'm thankful to you for enlightening me about such an important concept
We never would have understand eoq without the simple industry examples you give. Lesser the changeover time, less is the cost and better eoq and better productivity.
But for this, we should know the concept of smed which you already taught us effectively.
Thankyou sir
Thankyou Dr G and team for taking such efforts to make us understand EOQ in such a simpler manner.
Gomen'nasai for being a latecomer, Decreasing EOQ by introducing quick changeovers is an interesting concept. I remembered that I have seen it being applied albeit unintentionally in the workshop I visited recently. To assemble and disassemble and facilitating quick changeovers to increase the functionality of a Sleeve and wire cutting machines they were using Quick fasteners which can be used instead of Nut Bolts. It saves time and efforts.
A very simple and easy way for a layman to understand EOQ. Thank you so much Dr.G & team :)
This video is great demonstration to break the notion that when changeover time reduces, cost increases and vice versa.
It shows how cost per changeover can be reduced easily by reducing time required! And to bring down this changeover time we can use SMED principles.
Thank you Dr.G and all the members in the video for making us realize these facts.
This video cleared many of my doubts as how actually a change over takes place in a manufacturing unit. Sir, this is an awesome video explaining everyone who views this as to what actually happens in manufacturing unit when a variety of product are to be produced. Thank you!!
With the use of cups, the explanation of EOQ has become much more understandable. I am in a better position to relate to this concept with what I have read in the book. Thanks for the effort Dr. G in explaining this concept with such clarity.
Concept of EOQ explained in a very easy way... That gave a deep insight into the concept
This concept of inventory and material management was explained in such a simplified manner and now when we look at when is this concept followed in our day to day life is when a housemaker orders the monthly ration from the local kirana store in a manner that there is no inventory but at the same time there is no shortage of the consumables aswell.
Such simplified way of explaining topics is great. Understanding the practical implications from this video is so easy. Thanks you so much sir and your team.
You always manage to create a unique yet simplified way of teaching Sir! Tysm for enlightenment
This is a great video to understand the concept of EOQ that how to use the same machine to reduce the changeover cost by producing two varient of a product. Also by using the SMED concept the changeover time is reduced. Thank you sir.
Thanks You Sir for explaining EOQ in such a simple way. It gives me an understanding of how cost of changeover can be reduced by reducing the time and applying SMED.Concept learnt for lifetime :)
Thankyou Sir for explaining the concept of EOQ with SMED with such simple demonstration. EOQ helps us to minimize total inventory costs and the SMED technique helps to reduce the changeover time.
Sir, this video was a powerful tool to explain tough concept of Economic Order Quantity in an effective and simple way. I learnt how to cut down on total cost and the change-over time.
It would be difficult to understand the concept without the video. Thank you sir and team for making it and explaining it in a simple way.
This video made the concept very simple and easy to remember it. Thank you Dr.G and team!
Thank You Sir, for explaining EOQ concept with such a simple example. This makes me clear about relationship between batch size, changeover time and cost.
One of the best way to understand EOQ. Thanks Dr G and his team...
Very insightful video sir.. We have used and learn EOQ concept many times in our book but this is the simplest and best example to understand this concept. This technique can be used by industries where inventory cost and servicing cost is very high. Thank you Sir for your sharing of the knowledge.
Sir, the demonstration on EOQ is excellent and the way you link EOQ with the SMED. Thank You.
Great Video Sir... So easily we get to know through this video, that how EOQ is implemented and it's importance in today's industry.
Calculation is so easy but learning and knowing it practically is possible through this video. Thank you so much sir.
This way we can learn such techniques effortlessly. Great approach to educate us Sir.
Thank you sir for explaining the concept of EOQ with simple and practical example in order to understand, remember and apply easily.
Thank you sir for the video!
It clearly demonstrates how striking a right balance between batch size, cost and changeover time helps in achieving a optimum desirable EOQ.
Again a difficult concept made easy by Sir Dr. G and team with demonstration . Good learning on EOQ .
Very informative video, reducing the Number of changeover will reduce the overall changeover cost, Further reduction in changeover cost will reduce the Total cost and this is how EOQ will shift from left to right. Excellent technique to reduce the cost with great example.
Thank you Sir & Team.
Dixit Sankharva - RBA
EOQ is a concept which i read in cost accounting during graduation. But i never understood what does it actually means except cramming its formula for exam.
But after watching this video, the concept of EOQ is clear to me. And also i got the answers of questions like why EOQ is used as a technique to reduce cost and turnover size , SMED implementation in production etc.
Thankyou so much sir. It's a very effective way of understanding any concept.
Indeed an insightful video diving into an important concept in the world of business and manufacturing. Efficiency is indeed what makes a company the best at what it does and the video manages to focus on exactly how the concept can be put to disposal with the use of perfect example and analogies. Must watch!
A good explanation with a feasible example of EOQ . Thank you sir for enlightening us. The best part of this video is the introduction of SMED and it's correlation with EOQ concept . It's a good clarifying video. Thank you
Rosalin Sahoo - Few professors know about the link with SMED. EOQ is just a concept. SMED is very practical.
Hello Sir, we were aware of the theoretical knowledge of the concept of EOQ but looking at this practical example made it extremely clear to us. Thank you sir and team.
Thank you Sir and thank you Aishwarya and Shruti for the demonstration. Very well explained the concept in a simplified way and it's very easy to remember.
Similar to my peer's outlook, I too felt there would be separate machines for producing different types (in this case colors) of products. But this video throws light on how one single machine can be optimized to produce both variants of the product which occurs though at a cost i.e changeover time!
Thank you sir for such simple explanation of EOQ about how cost of changeover can be reduced and producing a new variant
Presentation of plastic cups as products, use of board for noting of data gives clear understanding of content and concepts...Keep it up and Thank you so much Dr. G and Team...Waiting for the next video....
The concepts in operations needs to be accompanied by a good practical demonstration and videos like this serves the purpose!! It was a good video and helped to improve my understanding regarding EOQ. :)
Thank you, Sir! Such practical examples help us know the concept clearly and makes us thorough with the basics. EOQ helps us to know the optimum level of inventory that a company should hold to minimise their costsr and that was explained in the video effortlessly .Moreover clubbing this concept with SMED makes it extraordinary.
Very Well demonstrated:) This, probably is the best way of explaining such concepts!!
The activity demonstrated greatly helped us in understanding the concept of changeover time and it's effect on cost.Also applying SMED helps in reducing the changeover time and thus reduces the cost.Also increasing the batch size helped in reducing the changeover time
Thank you, sir, EOQ concepts become more clear for me now. The hard work you guys put in to teach us the concept is really appreciable.
Again an insightful video Sir. I just know of the theoretical definition of EOQ but this video had a pragmatic approach to the same, which makes the concept easy to understand, especially by the Graph. A new way to get the concept of EOQ and how SMED helps to reduce changeover cost.
Sir your technique of clubbing theoretical concept with real life situations is outstanding. Your videos contains answers to every question.
Shalini Sood - A theory is good when it relates to practice. Good theories are evolved from practice.
True Sir. Practice is key to many successful theories nd if failure has occurred It has become a part of major learnings.
One of the best ways to understand EOQ and how SMED helps to reduce changeover cost. The activity rates high on clarity of the concept. Thank you Dr G & team for another concept clearing video! :D
Thank you sir for explaining the EOQ concept pratically and making it easier to understand...!!!
Thank you Dr.G and team for this video for making us understand the whole concept of EOQ with SMED(as already done in next video)very easily.Even while i was doing the course of Chartered Accountancy there was a whole one chapter on EOQ(Material costing),but i know how only the calculus part,but now i had understand its practical approach also.The whole concept of EOQ now looks clear.Thanks Dr.G and team once again for making your efforts for everybody to understand things
Hahaha, good one about accountants.
Dear sir,
I have worked on this concept during the size change process ( Change over due to tyre rim diameter change, material change etc. ), but I was unaware of this EOQ graph you represented in this video. The problem we were facing was If a sizes of same material or rim diameter produced in a lot, it was affecting the inventory area (FIFO) . Some material was getting expired though we were following FIFO. So by taking priority from customer section, we reduced the change overs in production and minimized the expiry problem of material without affecting the productivity.
This video contains insights of work in manufacturing industries,
Thank you sir.
Onkar Pathak - Thank you for sharing the example. What wonders SMED could have done in your actual situation in the factory!
Shrinivas Gondhalekar - Yoshi 👍
Thank you sir, understanding the concept became easy with such a good blend of practical experiment and graphical representation. Example was so interesting to watch and learn EOQ.
Thank you Dr. G and the entire team for this video, it is indeed very helpful to understand the concepts. Thank you once again sir.
great learning from the video sir. Very interesting video and learning concepts has always been fun when explained by you and your team. Thank you sir for explaining the concept of EOQ.
Thank you sir and team for explaining the concept of EOQ in a simple way .
Hello sir,
To reduce annual cost effectively n efficiently we need to have a minimal changeover cost so as to produce more in a certain period.
Simple concept is explain in simple way of understanding.
Looking forward to apply in daily activities. Thanks for the video sir.
Thank you sir for such a simple explanation. if we were to read books on EOQ, we would have easily gotten scared by this formula and alien terms but the visual representation really made it easy.
I could easily comprehend that total annual cost can be brought down by reducing the changeover time, which can be managed by applying SMED. :)
Oh ! So nicely explained. I absolutely appreciate yourself and your team for the efforts taken. These concepts may sound complicated by their term but ideally demonstrating them can't be done in a way better than using our daily consumables. :)
Thank you for you insight on EOQ. I was fimilar with this concept during my since my materials and quality engineering lecture, but you provided better level of understanding with good cases. Thank you Sir.
Woow this was much helpful than engineering books. What i undustud is; EOQ is tool for minimizing total cost of inventory. Also helps exact reorder point/time to avoid shortage of inventory. I forgot how it was calculated using formula but i am much clear with concept.
Shailesh kulkarni - The concept is important. Forget the formula. In real life nobody calculates EOQ. Correct data is usually unavailable.
Thank you Sir for simplifying the concept of EOQ in a very nice way.
Hello sir, thank you and your team for the efforts for creating this video. I could understand the concept clearly, I know this may sound silly but I think our mothers apply the concept of EOQ everyday while buying vegetables and exactly know how much grams they want within their budget, with a change over of a day they give us new varieties everyday
Great demonstration of combination of SMED techniques and EOQ concept. Thank you so much Sir for the easy to understand explanation.
Thank you sir for a very easy explanation of EOQ concept
Thank you sir for the video.
Clearly understood that by increasing the batch size and decreasing changeover time, we could produce more products at lower rates...These complicated concepts , was conveyed in a simple but effective manner in your video sir.
I was just knowing formula to calculate EOQ, but this practical explanation has really made me to think beyond. Sir, would like to learn concept of EPQ with such approach.
A CNG gas station fills two types of cars - one with the refilling nozzle at the front and one near the trunk. Often, I see cars with nozzles near the trunk struggle with getting into the pump compared to the other variants. Here, there is a tremendous waste of time (more changeover time). At a CNG pump in Mulund, Mumbai, I tried experimenting SMED with the intent of reducing the EOQ for the pump that caters to two variants. I asked one Suzuki driver to reverse when the cars just before him were getting refuelled and he waited back in the reverse position. Once the car before him was out, he reversed and went to the refilling site similar to a car with the nozzle on the front. I would approximate a saving of around 50 percent of time per vehicle and thus, overall lesser EOQ for the pump.
I am also looking out for smaller initiatives in day to day activities to reduce EOQ so we/organizations can accommodate more variations with lesser EOQ.
I thank you for explaining this concept of EOQ with such a simple example. I hope my experiment falls in line with this theory.
Akshay Jadhav - Very good. Appreciated your sharp observation and action.
It's interesting to learn how the EOQ is determined and how SMED can be applied to reduce the changeover time, effectively reducing the cost. Thank you for the video.
The practical implication of EOQ is shown in this video; such descriptions are difficult to find else where. EOQ and SMED both are used to manage the change process and still maintain the quality while meeting the time limits. Thank you Dr.G for this video. hope it will help the industrialists to be the next Ambanis and Birlas. ;)
Shaivya Srivastava - Good one!
Shrinivas Gondhalekar thank you sir. Nd i want to tell you.... we are equally enjoying your Japan trip😁
Shaivya Srivastava - Thank you for telling me that, Shaivya. I will keep sharing.
Thank you Sir for the video. The EOQ concept taught in a simplistic manner and can't be explained better than this.
Visual learning is very much adaptable to us. The activities selected by you in this video are really great. It gives us idea about EOQ. But would like to hear it and learn more and more about EOQ from you personally too in class.
Well explained Sir.
Thankyou Aishwarya and Shruti for demonstrating the concept.
Nidhi Shah - Nice of you to appreciate Aishwarya and Shruti. Please tell them.
One of the most useful video and clear understanding of EOQ.. thank you everyone... eSpecially Dr. G...thank you sir..
Thank You Sir! This simple practical example gave me the brief idea regarding EOQ and SMED. By relating
this video with actual working experience helped me to understand the concept very well.
The combination of SMED and EOQ helps in the optimising the inventory and change over time required. It is good to increase the batch size which eventually reduces the change over cost. Very informative video explained in simple method. Thank you sir and the team.
Great video sir!!..such an effective demonstration for such a complicated problem.
The video gives an easy explanation that how by applying the basic principles of SMED we can reduce the overall cost and achieve smaller EOQ's.
Hello sir,
I truly like the simple way of explaining the EOQ using simple cups.
Many companies spend lot of time for change over for varieties.
Live example may be while studying, If we want to study 2, subjects in 3 hours, after 1 hr, we will have change over time for books, notebooks and it will take 15 mins to search and get those from cupboard, and then we will start another subject for remaining time.
But this change over time can be reduced to 5 mins of we keep those required books near study table (SMED).
So that we can study for more time and variety of subjects (EOQ).
Please correct me if I am wrong.
Thank you.
Again a difficult concept explained very simply!✌🏻 Thank you sir for making operations so interesting for us.
Thank you Sir and team for explaining the concept of EOQ and how it can be linked with SMED to reduce the cost. By reducing the change over time, cost per change over can be reduced which will reduce the total cost and the EOQ. Concept explained in a simple and effective manner.
Exactly. Appreciated your comment.
Thank you sir for explaining the concept in a simplified manner.
Thank you sir for explaining eoq is such a simple way using the paper glass example and also application of smed can further help to reduce the change over time.
Thank you sir for making the concept of EOQ so simple.
A very useful & concept clearing Video. Thank you so much Dr. G & team :-)
This practical example with hands-on approach certainly gave me a clear picture regarding impact of EOQ and SMED on reducing changeover time and hence the cost. Thank you Sir and the team.
Welcome Muthanna. This is a point which many faculty and many books are unaware of. It helps move into the new customer oriented operations, away from the old resource oriented ineffective operations.
Made the concept so easy to understand. Thank you Sir :)
Thank you Dr. G. and team for the great learning experience with the EOQ video. The concept was very clearly conveyed and made easy to understand.
Thank you Sir for sharing this video with us and demonstrating such examples which help us understand the concepts clearly. Looking forward to hearing from you in class about the concept and performing some activity if possible.
Loved the way you explained sir. Thanks
The visual cues i.e. usage of coloured cups / charts / graphs help in understanding the concept much better. Thank you !
Mihika Sahani - Thanks Mihika. So different from how they teach... Dr G
Better way to understand EOQ thank you dr.g 😊
Thank you for demonstrating such examples which help us understand the concepts clearly
Thank you Dr. G. and team for the video. It was really very useful to understand EOQ concept.
Very well put for us non-engineering students to understand. Thank you very much sir for this video!