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Theory of Constraints:: EMGT 364 Term Paper Jesse Crispino and Ryan Saulsbury
Theory of Constraints:: EMGT 364 Term Paper Jesse Crispino and Ryan Saulsbury
Theory of Constraints
Developed by Eliyahu M. Goldratt A systems management philosophy developed in the 1980s Boost process performance by looking at the entire process Identifying and reducing bottlenecks Often applied in conjunction with TQM, JIT and ABM
Theory of Constraints
Project managers have always analyzed individual components of a process Maximizing components may not improve the process Goldratt views the entire process and finds the weakest link--Capacity Constrained Resource (CCR) All projects contain one, but not many CCRs
Drum-Buffer-Rope (DBR) system links first soldier with the slowest one
Drum-Buffer-Rope (DBR)
Logistical tool that balances flow of a system Drum: A schedule for capacity of the constraint Buffer: Built in time for parts to reach the constraint early (in process inventory) Rope: A schedule, or information connection, for releasing raw materials
Drum-Buffer-Rope: Implementing
Identify CCRs-Paretos Rule may help Schedule CCRs to capacity (drum) Protect from statistical fluctuations with time buffers (buffer) Monitor CCRs to ensure the timely release of materials upstream (rope) Monitor Buffer--Buffer Management (BM)
Difficulty finding space in cold room-wash/preparation was very quick Considered buying new cold room
CCPM: Implementing
Assume all material and information for tasks are on-hand Resolve resource conflicts Locate the Critical Chain--longest chain of tasks that consider both task and resource dependencies Critical Path--longest chain of tasks based upon task dependencies
CCPM: Implementing
Individual projects no longer have safety buffer Two types of safety buffers are inserted into the project as a whole Project Buffer: protects against overruns on the critical chain Feeding Buffer: protects against overruns on tasks that feed the critical chain
CPM vs CCPM
CPM:
Tasks have scheduled start and finish dates Early finishes on critical path do not accumulate Project is on time or late
CCPM:
Relay race analogy Tasks are scheduled by preceding tasks completion
CPM vs CCPM
CCPM will finish tasks faster Project teams moral and effectiveness will improve Project teams/project managers can produce early finishes Overall costs will decline
CPM
Start
Finish
CCPM
Rope
Resource Buffer Project Buffer
Start
Feeding Buffer
Finish
In Class Example:
You are a new plant manager for LETZ GETZ BLITZED BREWING CO INC. You need to re-work the production line soon because your boss, CEO Always Hammered is getting thirsty for the profits so to speak. Your Suppliers Bottle Cap Billy, and Hops McGee are consistently late. Your line supervisor Mr. Schmidt explains that those producers are from Denmark and the delays are due to rotten shipping.
In Class Example:
Current Situation:
The Hops & Malt used in the brewing process is suppose to arrive on the 1st of each month but it can arrive 1 day late. Yeast is purchased in bulk and is delivered on the 4th of the month. The line supervisor claims yeast requires 4 days of preparation before being added to the WORT. Packaging is delivered on the 11th of the month and requires imprinting and then fix/assembly (2days total) Your bottles are delivered on the 15th. You can fix the labels and assemble the packaging after your bottles arrive. Bottle caps are suppose to arrive on the 16th but lately they have been a day late. You are unable to obtain new suppliers because of existing contracts signed by the CEO.
In Class Example:
The following is a general concept of how to make the beer in your factory:
Step 1: You can start by creating the WORT. A process that includes adding water, hops, malt and then a boiling/cooling process. ( 1 day) Step 2: Transfer to the fermenter where the yeast is added Step 3: Fermentation (10 days-Cannot be reduced) Step 4: Final Preparation includes: Siphon beer to remove yeast sediment, Add Sugar-Bitters added to product to produce, and carbonation (4 days) Step 5: Bottling/Packaging (2 days)
Develop a CCPM for the Beer Making Process Remember: Reduce the Critical Path by 50%, Project Buffer(5 days) Feeder Buffer(2 total)
Key differences
ASAP vs. ASLP Buffer Management
QUESTIONS ??