CH: 6 Constraint Management
Constraint- any factor that limits the performance of a system and restricts it output
Bottleneck- the capacity constraint resource whose available capacity limits the organization’s ability to meet the product volume or mix, or demand fluctuations
Theories of constraints:
Identify the system bottleneck(s)
Exploit the bottleneck(s)
Subordinate all other decisions to Step 2
Evaluate the bottleneck(s)
Do not let inertia set in/repeat
Key Principle of the TOC:
-focus should be on balancing flow, not on balancing capacity
-maximizing the output and efficiency of every resource may not maximize the throughput of the entire system
-an hour lost at a bottleneck or constrained resource is an hour lost for the whole system (an hour saves does not make the system more productive)
-inventory is only needed in front of bottlenecks and in front of assembly and shipping points
-work should be released into the system only as frequently as needed by the bottlenecks (bottlneck flows=market demand)
-activating a non-bottleneck resources is not the same as utilizing a bottleneck (it doesn’t increase throughput or promote better performance)
-every capital investment must be viewed from the perspective of the global impact on throughput, inventory and operating expense