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THEORY OF CONSTRAINTS :

A CASE STUDY
IMPLEMENTATION OF THEORY OF
CONSTRAINTS (TOC) IN PRODUCTION

PRESENTED BY: KHUSHBOO CHOUDHARY


THE CASE STUDY FIRM: KEY FACTS
THE FIRM: A start-up

Deals in
• SHEET METAL
• ALUMINIUM EXTRUSIONS

Sheet metal includes


• Automobile chassis, UPS and invertor chassis and cabinets
• Refrigerating , silencers , leg guards

Aluminum extrusions includes


• Heat sinks, panels

Vendors/ Partners
• Valco India ltd, Indo alusys, Bhushan steels,BALCO, Jindal Steels, Tata
Steels

Sales & distributes


• Schneider electric, Luminous Power technologies, Zenus powers,Tata
motors, Voltas, Ashoka Leyland , Scooter India.
FOCUS AREA: Taking HEAT SINK
Manufacturing Unit into Consideration

HEAT INDULGENCE?!

Heat indulgence techniques are the prime concern to remove the


waste heat produced by Electronic Devices, to keep them within
permitted operating temperature limits. Heat indulgence techniques
include heat sinks, fans for air cooling, and other forms of cooling
such as liquid cooling. Heat produced by electronic devices and
circuitry must be self-indulgent to improve reliability and prevent
premature failure. Integrated circuits such as CPUs, chipset, graphic
cards, and hard disk drives are susceptible to temporary malfunction
or permanent failure if overheated.
ECOVOLT HEATSINKS

851-153403450010, 851-0001, 851-0002 are the three different types of


heat sinks they are mounted on 666 PCB plate of ecovolt inverter of
luminous power technologies in the ratio of 2:1:1. All the three heat sinks
are having common front and bottom operations; they can be distinguished
by their top operations. As 851-153403450010 has no operations on top
while 851-0001 has three holes on top two are M4 holes and one is M3.
Similarly 851-0002 has two M4 holes on top.
Number of Machines

Machines used :-

6 SPINDLE 6 SPINDLE
 SPM DRILLING TAPPING
 6 SPINDLE
 4 SPINDLE
 2 SPINDLE
 Manual
4 SPINDLE 4 SPINDLE
DRILLING TAPPING

2 SPINDLE 2 SPINDLE
DRILLING TAPPING
For manufacturing 851-153403450010

 2- 6 spindles drilling
 2- 2 spindles drilling
 1- 6 spindle tapping
 Single manual machine –
Chamfering
 Manpower- 6 operators
851-153403450010
For manufacturing 851-0001

 1- 6 spindle drilling
 1- 2 spindle drilling
 1- 6 spindle tapping
 5-manual machines are
required
◦ For m4 holes
◦ For m3 hole
◦ For chamfering
◦ For tapping m4 holes
◦ For tapping m3 holes
 Manpower- 8 operators
851-0001
For manufacturing 851-0002

 1-6 spindles drilling


 1- 2 spindles drilling
 1- 6 spindles tapping
 3 manual machines
◦ For m4 holes
◦ For Chamfering
◦ For m4 tapping
 Manpower- 6 operators
851-0002
Figures before the implementation of TOC
Ecovolt 851-0001 monthly production.
No.of 851-0001 heatsinks
produced
No.of 851-0001
Month heatsinks Rate value No.of 851-0001 heatsinks produced
produced
32750
26880 28480
October 32750 20.35 666436.00

November 26880 20.01 537868.80

December 28480 19.66 559916.80

October November December


No. of 851-0002
heatsinks produced. Ecovolt 851-0002 heat sinks

No. of 851-0002 heatsinks No. of 851-0002 heat


Months Rate Value
produced. sinks produced.
35040
26240 27840
October 35040 19.76 692222.40

November 26240 19.47 511022.40

October November December December 27840 19.11 532022.40


No of 851-153403450010 heatsink produced
No of 851-153403450010 heatsink produced
73880
58880
46060

October November December

Ecovolt heatsink 851-153403450010

Month No of 851-153403450010 heatsink produced Rate Value

October
73880 18.61 1374906.80
November
46060 18.25 840600.60
December
58880 17.91 1054540.80
The CHALLENGES we face.
 Slow throughput
 Less productive
 High non-operating expenses
 Incomplete purchase order
 Inventories deposition near 6-
spindle tapping machine of
851-153403450010 line.
 Slow productive rate due to
poor synchronization between
manual machines and
automatic SPM machines.
What is Theory of constraint(TOC) ?
 Identify - the system constraint(s)
 Exploit - the system constraint(s)
 Subordinate - the system constraint(s)
 Elevate – the system constraint(s)
 Go back to step 1 if bottleneck fails
Main causes of slow throughput:

 The center distance between 3 holes in front portion is 13mm. but our existing spindles
are not able to adjust lesser than 14mm, that’s why we do 1st and 3rd hole of front portion
and two holes of bottom portion at a time. For the 2nd hole we need extra machine and
labor.
(Note-1:- All three parts are having same front and bottom operations.)
(Note-2:- We use compounded fixtures in which we can perform two operations at a time one
is at front and another one is at bottom).
 First we place unprocessed part in first block, then after the completion of operation we
take it out and place in second block like this we can perform two operations at time.
working of compounded fixtures given below:-
Elimination
 The problem can be eliminated only when we can adjust our spindles at
the center distance of 13mm.
 Grind our spindles 0.3mm from both the sides
 Remove the capping ring placed over the bearing.

Before Grinding After Grinding


Modification done
By doing these modifications we are able to adjust our spindles at
the center distance of 13mm and we can save 4 persons from each
production line.

PRODUCTION LINE:-
 In both 851-0001 and 851-0002 heat sinks
Before:-
6-spindle 2-spindle 6-spindle manual M4 manual M3 manual M4 manual M3
chamfering
drilling drilling tapping drilling drilling tapping tapping

After:-

2-spindle 2-spindle
6-spindle 6-spindle manual M3
drilling-M4 tapping-M4 chamfering
drilling tapping drilling
holes holes
 In 851-0002
Before:-

6-spindle 2-spindle 6-spindle manual M4 manual M4


chamfering
drilling drilling tapping drilling tapping

After:-
2-spindle 2-spindle
6-spindle 6-spindle
drilling- tapping-M4
drilling tapping
M4holes holes

2 spindle machine is vacant now. This we can save two operators


and reduce the non operating expenses. By using automatic
machines instead of manual we can reduce the WIP inventory.
 In 851-153403450010
Before:-
Line 1

6-spindle 2-spindle 6-spindle


chamfering
drilling drilling tapping

Line 2

6-spindle 2-spindle
drilling drilling

Two 6 spindle drilling machines and two 2 spindle drilling machines


for drilling holes. But only one 6-spindle drilling machine for tapping
After:-
Line 1

6-spindle 6-spindle
chamfering
drilling tapping

Line 2

6-spindle drilling 6-spindle tapping

we used our vacant operator for running one extra 6-spindle tapping
machine for converting all WIP inventories into FG’s.
Figures after the implementation of TOC
No.of 851-0001 heatsinks produced
No.of 851-0001 heatsinks produced
50000
32750 26880 28480

October November December january(till 29th)


Ecovolt 851-0001 monthly production.

No.of 851-0001 heat sinks


Month Rate value
produced

October 32750 20.35 666436.00


November 26880 20.01 537868.80
December 28480 19.66 559916.80

Expected 50000 19.66


983000.00
No. of 851-0002 heatsinks produced.
No. of 851-0002 heatsinks produced.
50000

35040
26240 27840

October November December january(till 29th)


Ecovolt 851-0002 heatsinks

Months No. of 851-0002 heatsinks produced. Rate Value

October 35040 19.76 692222.40


November 26240 19.47 511022.40
December 27840 19.11 532022.40

Expected 50000 19.11 955500.00


No of 851-153403450010 heatsink produced
No of 851-153403450010 heatsink produced
100000
73880
58880
46060

October November December january(till 29th)

Ecovolt heatsink 851-153403450010

Month No of 851-153403450010 heatsink produced Rate Value

October
73880 18.61 1374906.80
November
46060 18.25 840600.60
December
58880 17.91 1054540.80
Expected
100000 17.91 1791000.00
Rate of production : A comparison

Rate of production per shift. (Before)

No.of machines required


Mothlty Operator's/
No.of parts/ No. of operators No.of Price Total Total wage
Part code WIP production month Net value
shift required working days rate/Part value value given
capacity wages

Manual SPM

851-0001 2000 500 8 5 3 20 40000


19.66 786400 7045 56360 730040

851-0002 2000 500 6 3 3 20 40000


19.11 764400 7045 42270 722130
851-
4000 1000 6 1 5 20 80000
153403450010
17.91 1432800 7045 42270 1390530

Total 2842700
Rate of production per shift. (After)

No.of machines required

Mothlty Operator's/
No.of parts/ No. of operators No.of Price Total Total wage
Part code WIP production month Net value
shift required working days rate/Part value value given
capacity wages
Manual SPM

851-0001 2500 0 6 2 4 20 50000


19.66 983000 7045 42270 940730

851-0002 2500 0 4 1 4 20 50000


19.11 955500 7045 28180 927320

851-
5000 0 5 1 4 20 100000
153403450010
17.91 1791000 7045 35225 1755775

Total 3623825

Profit Value 781125


Goal Achieved!
 Proper utilization
 Synchronized form
 Increased throughput
 Completion of purchase order
 Operator saved:
o In 851-153403450010:- 1
o In 851-0001:- 2
o In 851-0002:- 2