Forward to Instructors

Dealing with Production Bottlenecks

Mini-case

Be Sure To Review Notes

Area And Related Word
Document

DP Johnson, 2005

Dealing with Production

Bottlenecks
Mini-case
The concepts and approach applied in these examples
come from the book The Goal by Eli Goldratt. This book
is required reading for anyone interested in manufacturing,
production operations and productivity improvement

DP Johnson, 2005

The Goal
Every system was built for a purpose
Must define the systems global goal
Actions of and decision about
subsystems must be judged on
impact towards the global goal

From The Goal

by Eli Goldratt

Constraints
Anything that limits a system from
achieving higher performance vs its
goal
Critical Constraint

The active constraint

The one that is currently limiting the
system
From The Goal
by Eli Goldratt

Flow and Constraints

200

400

350

#s are Maximum
Production Rates
In Units/Hour

250
500

225

250
220

300

250

250
250
300

500

600

Flow and Constraints

300

350

400

#s are Maximum
Production Rates
In Units/Shift

250
500

300

300
300

275

1000

300

275
275
300

500

50% / 50% Split

600

Five Steps

From The Goal

by Eli Goldratt

Identify the Systems Constraints

Decide how to exploit the systems
constraints
Subordinate everything else to the
above decision
Elevate the systems constraints
If in the previous steps a constraint
has been broken, go back to step 1

Identify the Systems Constraints

Prioritize by impact on the
goal otherwise too much
trivia
Specifically identify the active
constraint
Find a numeric capacity value
if possible

From The Goal

by Eli Goldratt

Decide how to exploit the systems

constraints
Find ways to maximize output of
bottlenecks aka active constraints
Find ways to offload and maximize
effectiveness of this resource

From The Goal

by Eli Goldratt

Subordinate everything else to the

above decision

Priorities for
_________
_________
_________

Do you need to run other resources

at full capacity?

Elevate the systems constraints

Can you
Increase the capacity of the bottleneck?

Speed up?
Add more available time?
Reduce setup time and other downtime?

Cut the constraint resource out of some

processes?
Use alternate resources?
Improve the effectiveness

Inspection prior to bottleneck?

Can we break the constraint?

If in the previous steps a constraint

has been broken, go back to step 1
Once you break the critical / active
constraint there will be a new one
Find the new one and repeat the
process

From The Goal

by Eli Goldratt

Flow and ConstraintsID Constraints

300

350

400

250
500

300

250

250

200
300

250

#s are Maximum
Production Rates
In Units/Shift

250

300

300
500

Exploit
Subordinate
Elevate
Break/Repeat

600

50/50 Split

What if demand is = 275 per shift?

Multiple Product Flows

300

300

500

200
300

250

400

#s are Maximum
Production Rates
In Units/Hour

250

250

300

What if demand is
150 per hour of A
150 per hour of B

250
250

Flow for A
Flow for B

Assembly Product Flows

75

100

350

150

175

Production Rates
In Units/Shift

Assembly Station

175
175

300
55

What if demand for

assemblies is 150 per shift

Combines part A
and part B into one
assembly which is
sold as a complete
product

Capacity:
75 assemblies per shift

Flow for A
Flow for B

Cycle Time Example

Machine 1
2 Min/unit
of C

1.5 min/unit
of D

Machine 3
1.5 min/unit of C

1.5 min/unit of D

Machine 2

What if demand is 150

assemblies per shift and
One shift has 410 available
production minutes?

Machine 4
3 Min/unit
of C

1 min/unit
of D

Machine 5

Assembly Station
Combines part C
and part D into one
assembly which is
sold as a complete
product
Standard Time:
3 min per assembly

Flow for C
Flow for D

Example 1

Bobco makes a product consisting

of these 9 parts which are
manually assembled.
There are 8 plastic parts and one
turned metal part. A process flow
diagram is on the next page

Process Map

Forecasts
Orders

Bobco

Marketing
Customer Service
Orders

Warehouse
Production Control

Production Schedules

Finished Goods
Matl Hdl
Plastic Molding

Deflash/Inspect

8 Parts/Assy
Distribution

Parts

CNC Turning

Final Assembly

Process

1 Part/Assy
Cutoff Saw
WIP - Assy

Raw Matl
Matl Hdl

Cutoff Saw
CNC Turning
Deflash/Inspect
Plastic Molding
Final Assembly

Standard Time/Part
(min)
1.6
1.5
1.5
0.25
3

# of Machines
(qty)
1
4
18
3
2

Raw Material

Example Can you find the bottleneck if all departments run 40 hrs/week?
- Can you meet a forecasted demand for 2000 units per week?

Process Map

Forecasts
Orders

Bobco

Marketing
Customer Service
Orders

Warehouse
Production Control

Production Schedules

Finished Goods
Matl Hdl
Plastic Molding

Deflash/Inspect

FIND THE CAPACITY OF THE SYSTEM

8 Parts/Assy
Distribution

Parts

CNC Turning

Final Assembly

Process

1 Part/Assy
Cutoff Saw
WIP - Assy

Raw Matl
Matl Hdl

Cutoff Saw
CNC Turning
Deflash/Inspect
Plastic Molding
Final Assembly

Standard Time/Part
(min)
1.6
1.5
1.5
0.25
3

# of Machines
(qty)
1
4
18
3
2

Raw Material

Example Can you find the bottleneck if all departments run 40 hrs/week?
- Can you meet a forecasted demand for 2000 units per week?

Samco Mini-Case Problem

Samco makes three products

A B and C.
The Three are very similar..

A
two metal and three plastic components
assembled manually

B
two metal and three plastic components
assembled manually

C
two metal and three plastic components
assembled manually

Parts for
Product A

Parts for
Product B

Parts for
Product C

The process map and details are shown on the following pages

Process MapTOC Project Samco

Forecasts

Orders
Marketing
Customer Service

Orders

Warehouse
Production Control

Production Schedules

Matl Hdl

Finished Goods

Pad Print
Deflash/Inspect

Skip

Parts

Assembly

3 Parts/Unit

Plastic Molding

Distribution

CNC Turning

2 Parts/Unit

Forecasted Demand/Week

A
3900

B
2200

C
3100

WIP - Assy
Cutoff Saw

Standard Times
Product A Product B Product C Shifts
(min)
(min)
(min)
(#/day)
Cutoff Saw
1.60
1.60
1.60
2.00
CNC Turn
1.50
2.00
3.00
1.00
Deflash/Inspect
1.50
1.50
1.50
2.00
Plastic Molding
0.25
0.25
0.25
2.00
Pad Print
1.00
1.00
1.00
Final Assembly
3.00
3.50
3.00
2.00

Raw Matl
Matl Hdl
Raw Material

Machine Availability
(hrs/week/machine)
77
37
77
77
37
77

Qty of Machines
(#)
7
12
9
9
8
12

The production system is having problems. WIP is piling up all

over the factory. Orders are going out late. Departments are
requesting overtime to catch up, but even when overtime is
authorized for all departments the situation does not improve.
When overtime is authorized the backlogged orders are filled,
but WIP seems to grow, adding to the confusion and congestion
on the floor, which seems to generate additional request for
overtime to catch up and clear out WIP and new late orders.

Process MapTOC Project

Forecasts

Orders
Marketing
Customer Service

Orders

Warehouse
Production Control

Production Schedules

Matl Hdl

Finished Goods

Pad Print
Deflash/Inspect

Skip

Parts

Assembly

3 Parts/Unit

Plastic Molding

Distribution

CNC Turning

2 Parts/Unit

Forecasted Demand/Week

A
3900

B
2200

C
3100

WIP - Assy
Cutoff Saw

Standard Times
Product A Product B Product C Shifts
(min)
(min)
(min)
(#/day)
Cutoff Saw
1.60
1.60
1.60
2.00
CNC Turn
1.50
2.00
3.00
1.00
Deflash/Inspect
1.50
1.50
1.50
2.00
Plastic Molding
0.25
0.25
0.25
2.00
Pad Print
1.00
1.00
1.00
Final Assembly
3.00
3.50
3.00
2.00

Raw Matl
Matl Hdl

Machine Availability
(hrs/week/machine)
77
37
77
77
37
77

Qty of Machines
(#)
7
12
9
9
8
12

Raw Material

What can be done? The company has no money for capital

investments (new equipment) but is willing to consider
implementing recommendations that do not involve capital
spending.

Process MapTOC Project

Forecasts

Orders
Marketing
Customer Service

Orders

Warehouse
Production Control

Production Schedules

Matl Hdl

Finished Goods

Pad Print
Deflash/Inspect

Skip

Parts

Assembly

3 Parts/Unit

Plastic Molding

Distribution

CNC Turning

2 Parts/Unit

Forecasted Demand/Week

A
3900

B
2200

C
3100

WIP - Assy
Cutoff Saw

Standard Times
Product A Product B Product C Shifts
(min)
(min)
(min)
(#/day)
Cutoff Saw
1.60
1.60
1.60
2.00
CNC Turn
1.50
2.00
3.00
1.00
Deflash/Inspect
1.50
1.50
1.50
2.00
Plastic Molding
0.25
0.25
0.25
2.00
Pad Print
1.00
1.00
1.00
Final Assembly
3.00
3.50
3.00
2.00

Raw Matl
Matl Hdl
Raw Material

Machine Availability
(hrs/week/machine)
77
37
77
77
37
77

Qty of Machines
(#)
7
12
9
9
8
12