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Constraint Management
CONSTRAINT MANAGEMENT
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CONSTRAINT
Any factor that limits the performance of a system and restricts its output. Constraints can occur up or down the supply chain, with either the firms suppliers or customers, or within one of firms processes like service/product development or order fulfillment.
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KINDS OF CONSTRAINTS
Three kinds of constraints can generally be identified: Physical (usually machine, labor or workstation capacity or material shortages) Market ( demand is less than capacity) Managerial ( policy, metrics, or mind-sets that create constraints which impede work flow)
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BOTTLENECK
A bottleneck is a special type of constraint that relates to: The capacity shortage of a process, & is defined as Any resource whose available capacity limits the organizations ability to meet the service or product volume, product mix, or fluctuating requirements demanded by the market place
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THEORY OF CONSTRAINT
A systematic management approach that focuses on actively managing those constraints that impede a firms progress toward its goals TOC methods increase the firms profits more effectively by focusing on making materials flow rapidly through the entire system They help firms look at the big picturehow processes can be improved to increase overall work flows, & how inventory and workforce levels can be reduced while still effectively utilizing critical resources.
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Theory of Constraints
Bottlenecks can both be internal or external to the firm and are typically a process or step with the lowest capacity Throughput time is the total elapsed time from the start to the finish of a job or a customer being processed at one or more work centers A bottleneck can be identified in several different ways
1. If it has the highest total time per unit processed 2. If it has the highest average utilization and total workload 3. If a reduction of processing time would reduce the average throughput time for the entire process
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At step 2, the loans are categorized into different classes according to the loan amount and whether they are being requested for personal or commercial reasons. While credit checking commences at step 3, loan application data are entered in parallel into the information system for record-keeping purposes at step 4. Finally, all paperwork for setting up the new loan is finished at step 5. The time taken in minutes is given in parentheses.
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Enter loan application into the system (12 min) Figure: Processing Credit Loan Applications at First Community Bank
Which single step is the bottleneck? The management is also interested in knowing the maximum number of approved loans this system can process in a 5-hour work day.
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A Line Process
Line Balancing
Assignment of work to stations in a line so as to achieve the desired output rate with the smallest number of workstations Achieving the goal is similar to the theory of constraints but it differs in how it addresses bottlenecks
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Precedence Diagram
EXAMPLE Green Grass, Inc., a manufacturer of lawn and garden equipment, is designing an assembly line to produce a new fertilizer spreader, the Big Broadcaster. Using the following information on the production process, construct a precedence diagram for the Work Time Immediate Description (sec) Predecessor(s) Big Broadcaster. Element
A B C D E F G H I Bolt leg frame to hopper Insert impeller shaft Attach axle Attach agitator Attach drive wheel Attach free wheel Mount lower post Attach controls Mount nameplate 40 30 50 40 6 25 15 20 18 Total =244
CONSTRAINT MANAGEMENT
None A A B B C C D, E F, G
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Precedence Diagram
SOLUTION Figure shows the complete diagram. We begin with work element A, which has no immediate predecessors. Next, we add elements B and C, for which element A is the only immediate predecessor. After entering time standards and arrows showing precedence, we add elements D and E, and so on. The diagram simplifies interpretation. Work element F, D for example, can be done H 40 B anywhere on the line after 20 E element C is completed. 30 However, element I must 6 A await completion of F 40 elements F and G. C 25
50 G Figure: Precedence Diagram for Assembling the Big Broadcaster 15
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I 18
CONSTRAINT MANAGEMENT
CYCLE TIME
Cycle time is the maximum time allowed for work on a unit at each station.
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THEORETICAL MINIMUM
A benchmark or goal for the smallest number of stations possible, where the total time required to assemble each unit is divided by the cycle time.
7t TM = c where 7t = total time required to assemble each unit
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The theoretical minimum number of workstations is 5 and the cycle time is 60 seconds, so Figure 7.5 represents an optimal solution to the problem
D B 30 A 40 C 50 G 15 Figure 7.5 Big Broadcaster Precedence Diagram Solution
CONSTRAINT MANAGEMENT
40 E 6
H 20
F 25 I 18
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Solved Problem
A company is setting up an assembly line to produce 192 units per 8-hour shift. The following table identifies the work elements, times, and immediate predecessors:
Work Element A B C D E F G H I J Time (sec) 40 80 30 25 20 15 120 145 130 115 Total 720 Immediate Predecessor(s) None A D, E, F B B B A G H C, I
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a. What is the desired cycle time (in seconds)? b. What is the theoretical minimum number of stations? c. Use trial and error to work out a solution, and show your solution on a precedence diagram. d. What are the efficiency and balance delay of the solution found? SOLUTION a. Substituting in the cycle-time formula, we get 1 8 hours (3,600 sec/hr) = 150 sec/unit c= r = 192 units
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7t TM = c =
= 4.8
or 5 stations
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c. The precedence diagram is shown in Figure. Each row in the following table shows work elements assigned to each of the five workstations in the proposed solution.
Work Element Immediate Predecessor(s) None A D, E, F B B B A G H C, I
A B C D E F G H I J
E 20 F 15
C 30 J 115
I 130
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Station S1
Candidate(s)
Choice
S2
S3 S4
S5
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Station S1
Candidate(s) A B D, E, F
Choice A B D G E H I F C J
Cumulative Time (sec) 40 120 145 120 140 145 130 145 30 145
S2
E, F, G E, F
S3 S4
F, H F, I F
S5
C J
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Solved Problem
d. Calculating the efficiency, we get
Efficiency (%) =
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