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5 views

p.2 Amt

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mariamegc11.com
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p.2 amt mang.

a
Managerial - 4TH
ny
PART 2-AMT
ro
theory of constraints
a
ph

pharonya

7.00

1
p.2 manag 4
part 2 - AMT

theory of constraint
‫• ﻣن اﻻﺧر ﻋﻧدﻧﺎ ﻣﺻﻧﻊ ﺷﻐﻠﮫ ﻣﺗﻘﺳم اﻟﻲ ﻣراﺣل ﺑﺗﺳﻠم ﺑﻌض ﻋﺎﯾزﯾن ﻧﺷوف اﺿﻌف‬
‫ﻣرﺣﻠﮫ اﯾﮫ و ﻧﻌﻣﻠﮭﺎ ﺗﺣﺳﯾن ﻋﻠﺷﺎن دﯾﮫ اﻟﻠﻲ ﻣﻘﯾده ﻣﺑﯾﻌﺎت اﻟﻣﺻﻧﻊ ﻛﻠﮫ‬

what is the Purpose of theory of constraint ?


1. To determine where to start improvement;

2. How to make the improvement effective;

3. How to make the improvement continuous.

what is the Basic Idea of theory of constraint?


• Is to look at the company activities (functions) as a chain of links where the
maximum strength (capacity) of the chain (company) is measured by the
strength (capacity) of the weakest link (activity).

• Therefore, improvement starts by increasing the strength (capacity) of the


weakest link (activity).

• Increasing the strength (capacity) of the weakest link (activity) will increase
the strength (capacity) of the entire chain (company), which means effective
improvement.

• Also, improving the current weakest link (activity) will automatically leads to
another weakest link (activity) and so on, which means continuous improvement.

2
Steps For Applying The Theory of Constraints
1. To determine the activity or the process or the function that represent a
constraint (the weakest link).

2. Try to make the use of the capacity of the constraint approaching 100%

a
because it is going to affect the overall capacity of the company (by avoiding all
types of waste: scrap, idle, spoiled units).

ny
3. Try to adjust (tune) the capacities of all other activities or process according
to the capacity of the constraint (to make it balanced to avoid the accumulation
of inventory).
ro
4. Start the efforts for breaking or relaxing the constraint for improving the
overall capacity of the company, and for reducing the idle capacity of the other
activities. This can be done by the following:

a) Redeploying the idle resources in the other activities to be used by the


a

constraint activity.

b) Focusing business process improvement efforts on the constraint. No allowances


ph

for any type defective units or wastes (scrap, idle time, spoilage) processed
through the constraint.

c) Increase the production length (overtime, second shift).

d) Outsourcing (subcontracting some of the processing that would be done at the


constraint).

e) Training program for improving efficiency.

f) Additional investment in the constraint activity

5. If the improvements in step (4) is enough to break or to relax the constraint, it


is no longer a constraint, and the process will automatically lead to another
constraint. Then we go to step (2) to repeat the improvement process to make
continuous.

3
note 1 : In the automated environment, we expect all costs
will be fixed cost except the cost of raw materials.

Throughput: is the profitable productivity, i.e., increase in


production that add to the company profit.

Throughput = Selling Price – Material Cost only

note 2 : Improvement in the company is measured by the


increase in sales for making money.

• Company should try to make money in order to be flexible.

• Flexibility make the company able to:


to

1. Gain the advantage of the available opportunities.

2. Face any unexpected problems (threat).

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solution

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6
solution

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solution
required 1

(2) Since (X)) is not a constraint, then any improvement in (X)


( ) will not be effective, i.e.,
no increase in the company sales units.

Increase in the company throughput = 0 units x 30 $/unit = 0

Additional costs = ($1,000)

Decrease in the company profits = ($1,000)

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Disagree, because improvements in (X) will decrease company profits by $1,000,
and add to the idle capacity in (X) 1200 part / 4 parts = 400 units.

(3) Since (Y) is a constraint, then any improvement in (Z) will be effective, i.e.,
increase in the company sales units.

Increase in the capacity of (Y) = 200 hours x 2 unit/hour = 400 units

Increase in the company throughput = 250 units x 30 $/unit = 7,500

Additional costs = (1,500)

Increase in the company profits = 6,000

Agree, because improvements in (Y) will increase company profits by 6,000.

4- (X) now is a constraint = 20 + 30 = 50, Y is not a constraint = 20 material only

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