Saturday, August 3, 2019

Another New Book Part 8

In my last post I explained that this series of posts was taken from my newest book, Theory of Constraints, Lean, and Six Sigma Improvement Methodology - Making the Case for Integration, I will be discussing how I present the basics of TOC to those readers who may not be familiar with it.  In my last post I demonstrated the concept of the constraint by presenting a simple piping system used to transport water.  In this post I will lay out how these basic concepts apply to a simple manufacturing process.


The figure below is a simple four-step diagram of a manufacturing process used to produce some kind of product. Based upon what you have learned from seeing the piping system, ask yourself which step is limiting the production of this product through this process and why it is the limiting process step. Let’s look at some different scenarios to help answer this question in more depth.

The first question we should ask is, based upon the processing times of each step, how long does it take to process a single part through this process? For the first part of this process, the processing time for one part would be the sum total of each of the individual processing times as follows:

7 Days +14 Days + 21Days + 7 Days = 49 Days

The next question to answer is, once the production line is full, what is the output rate of this simple process? The answer to this question is that because Step C, at 21 days, limits the output rate, then the rate of this process, as it currently exists, is one part every 21 days. The figure below summarizes this process with the constraint highlighted. Let’s now look at some additional scenarios that will have an impact on this manufacturing process.

Suppose that Step A has problems and goes down for 7 days, what would happen to the output rate of this process? The simple answer is, nothing changes because it only takes 7 days to complete, so there are still 7 days of buffer time left over to supply Step B. Now suppose Step B goes down for 7 days. Again, nothing changes, because it only takes 14 days to complete, so it should still be able to supply Step C in time before it is starved. Finally, if Step D goes down for 7 days, throughput remains the same because it has a time buffer of 14 days due to Step C’s extended processing time.

Unfortunately, if Step C goes down for 7 days, you will have lost 7 days of throughput that is lost forever! Now let’s look at how to increase the throughput of this process.  If you are able to reduce the processing time on Step A from 7 days to 4 days, what would happen to the output of the process? The simple fact is that if you reduce the processing time on Step A from 7 days to 4 days, throughput remains the same because of Step C’s longer processing time. Likewise, if you reduce the processing time on Step B from 14 days to 7 days, what happens to the output of this process? If you reduce the processing time on Step B from 14 days to 7 days, no throughput improvement will occur, again because of Step C’s longer processing time. If you reduce the processing time on Step D from 7 days to 4 days, what happens to the output of the process?

Just like the other examples, if you reduce the processing time on Step D from 7 days to 4 days, not much happens, again because of Step C’s longer processing time. So, based on all of this, what is the only way to increase the throughput of this process? The simple answer to this question is that if you want to increase the throughput of this process, you must focus all improvements on the constraint operation and reduce its processing time!

For example, what happens to the throughput of this process if you reduce the processing time in the constraint from 21 days to 18 days as in the figure below? The immediate effect of this time reduction is that you improve the throughput of the process from one part every 21 Days to one part every 18 Days, or a 17 percent increase! Because of the impact of your constraining step on the output, doesn’t it make sense to focus most of your improvement efforts on the constraint? Exceptions to this would be if there are quality issues causing scrap or excessive rework with Step D or prolonged delays within Step B. This, of course, assumes that the demand for your product is high enough to be able to sell the additional product.

The next, most obvious question you might ask is, how do you reduce the processing time in the constraint? The answer to this question is the essence of this book. By reducing waste (through Lean tools and techniques) and variation (through Six Sigma tools and techniques), focusing primarily on the system constraint. In other words, by doing things like off-loading work from the constraint to non-constraints, or by eliminating scrap or rework conditions in the constraint and non-constraint process steps after the constraint. The key factor to remember is that if you want to maximize the output of your manufacturing process, you should never allow the constraining operation to sit idle because every minute lost on your constraining operation is lost forever!

In my next post, we will discuss a different subject.
Bob Sproull


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