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Synchronous Manufacturing and The Theory of Constraints

This document discusses synchronous manufacturing and the theory of constraints. It covers topics like bottlenecks, throughput, inventory, operational expenses, productivity, dependent events, statistical fluctuations, capacity, methods of control, finding bottlenecks, drum-buffer-rope, quality, batch sizes, bottleneck situations, dollar days, benefits of dollar days, comparing synchronous manufacturing to MRP and JIT, and the relationship with other functional areas.

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Aristianto ZX
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408 views

Synchronous Manufacturing and The Theory of Constraints

This document discusses synchronous manufacturing and the theory of constraints. It covers topics like bottlenecks, throughput, inventory, operational expenses, productivity, dependent events, statistical fluctuations, capacity, methods of control, finding bottlenecks, drum-buffer-rope, quality, batch sizes, bottleneck situations, dollar days, benefits of dollar days, comparing synchronous manufacturing to MRP and JIT, and the relationship with other functional areas.

Uploaded by

Aristianto ZX
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Synchronous Manufacturing

& Theory of Constraints

ARISTIANTO MUHARDI
12010118190380
ERSZA DEMITRIA JAJANG
12010118190384
What is the Theory
of Constraints?
Synchronous manufacturing or synchronized manufacturing refers to the
entire manufacturing processes working together in harmony to achieve the
goals of the firm. It does not balance the capacity, but it balances the flow.

A bottleneck is a capacity constraint resource that has the least capacity. As


the weakest link, the bottleneck limits the throughput of the system. The
bottleneck become a system’s constraint when its capacity is less than
demand placed on system
Goldratt’s Rules of Production
Scheduling
Goldratt’s Theory of Constraints
(TOC)
Goldratt’s Goal of the Firm

“The goal of a firm is to make money”


Performance Measurement :
Financial
Measures:
• Net profit – an absolute measurement in dollars
• Return on investment – a relative measure based on investment
• Cash flow – a survival measurement
Performance Measurement:
Operational
1. Throughput – the rate at which money is generated by
the system through sales
2. Inventory – all the money that the system has invested in
purchasing things it intends to sell
3. Operating expenses – all the money that the system
spends to turn inventory into throughput
Productivity

Does not guarantee profitability


• Has throughput increased?
• Has inventory decreased?
• Have operational expenses decreased?
Dependent Events &
Statistical fluctuation
The term dependent events refer to a process sequence if a process flows
from A to B to C to D and it's process must be completed before passing on
the next step then B, C and D are dependent events. The ability to do the
next process is dependent on the preceding one.

Statistical fluctuation refers to the normal variation about a mean or average.


when statistical fluctuation occur in a independent sequence without any
inventory between workstation. There is no opportunity to achieve the average
output. when one process takes longer than the average, the next process
cannot make up the time.
The Statistics of Dependent
Events

When one process takes longer


than the average, the time can
not be made up

Rather than balancing capacities,


the flow of product through the
system should be balance
Capacity Related Terminology

 Capacity is the available time for production


 Bottleneck is what happens if capacity is less than
demand placed on resource
 Nonbottleneck is what happens when capacity is greater
than demand placed on resource
 Capacity-constrained resource (CCR) is a resource
where the capacity is close to demand placed on the
resource
Basic Manufacturing Building
Blocks
Method of Control
Time Components of Production
Cycle
• Setup time is the time that a part spends waiting for a resource to be
set up to work on this same part
• Process time is the time that the part is being processed
• Queue time is the time that a part waits for a resource while the
resource is busy with something else
• Wait time is the time that a part waits not for a resource but for
another part so that they can be assembled together
• Idle time is the unused time that represents the cycle time less the
sum of the setup time, processing time, queue time, and wait time
Finding the bottleneck
There are two ways to find the bottleneck (or bottlenecks) in a system.
One is to run a capacity resource profile and the other is to use our
knowledge of the particular plant; look at the system in operation, and talk
with supervisors and workers

A capacity resource profile is obtained by looking at the loads placed


on each resource by the products that are scheduled through them. In
running a capacity profile, we assume that the data are reasonably
accurate, although not necessarily perfect.
Saving Time
There are a number of ways we can save time on a
bottleneck like:
 better tooling
 higher-quality labor
 larger batch sizes
 reduction in setup times

What are the consequences of saving time at each process?

Bottleneck -> Nonbottleneck

Rule: Bottlenecks govern both throughput and inventory in the system.


Rule: An hour lost at a bottleneck is an hour lost for the entire system.
Rule: An hour saved at a nonbottleneck is a mirage.
Drum, Buffer, Rope
Important of Quality

More tolerant than JIT systems – Excess capacity


throughout system

Except for the bottleneck – Quality control needed


before bottleneck
Batch Sizes
What is the batch size?

• One?
"one," in an assembly line focuses on the part transferred one unit
at a time.

• Infinity?
From the point of view of the resource, the process batch is infinity because
it is continuing to run the same units . Thus, in an assembly line, we have a
process butch of infinity (or all the units until we change to another process
setup) and a transfer butch of one unit.
Bottlenecks and CCRs: Flow-Control
Situations
• A bottleneck
– (1) with no setup required when changing from one product to another
– (2) with setup times required to change from one product to another

• A capacity constrained resource (CCR)


– (3) with no setup required to change from one product to another
– (4) with setup time required when changing from one product to another
Inventory Cost Measurement:
Dollar Days
Dollar Days is a measurement of the value of inventory and the
time it stays within an area

Value of inventory
Dollar Days:
Number of days within a department
Benefits from Dollar Day
Measurement
Marketing
– Discourages holding large amounts of finished goods inventory

Purchasing
– Discourages placing large purchase orders that on the surface appear to take advantage
of quantity discounts

Manufacturing
– Discourage large work in process and producing earlier than needed
Comparing Synchronous
Manufacturing to MRP
 MRP uses backward scheduling

 Synchronous manufacturing uses forward scheduling


Comparing Synchronous
Manufacturing to JIT
 JIT is limited to repetitive manufacturing
 JIT requires a stable production level
 JIT does not allow very much flexibility in the products produced
 JIT still requires work in process when used with kanban so that there
is “something to pull”
 Vendors need to be located nearby because the system depends on
smaller, more frequent deliveries
Relationship with Other
Functional Areas

 Accounting’s influence

 Marketing and production


THANK YOU
“
Questions:

27

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