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Mcgraw-Hill/Irwin © 2006 The Mcgraw-Hill Companies, Inc., All Rights Reserved
Mcgraw-Hill/Irwin © 2006 The Mcgraw-Hill Companies, Inc., All Rights Reserved
McGraw-Hill/Irwin
Chapter 18
Synchronous
Manufacturing and
Theory of Constraints
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OBJECTIVES
Goldratts Rules
Performance Measurement
Synchronous Manufacturing
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Goldratts
Theory of Constraints
(TOC )
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Performance Measurement:
Financial
Net profit
Return on investment
Cash flow
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a survival measurement
2006 The McGraw-Hill Companies, Inc., All
Performance Measurement:
Operational
1. Throughput
2. Inventory
3. Operating expenses
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Productivity
Does
not guarantee
profitability
Has throughput increased?
Has inventory decreased?
Have operational expenses
decreased?
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Unbalanced Capacity
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(Constant)
10
12
10
14
(Constant)
10
(Variable)
10
12
14
When
one
process
takes
longer
than the
average,
the time
can not
be made
up
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13
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25%
25%in
inYY
Case A
X
Demand/month
Process time/unit
Avail. time/month
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Market
X
Bottleneck
200 units
1 hour
200 hours
Y
Nonbottleneck
200 units
45 mins
200 hours
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Yes,
Yes, 25%
25%in
inYY
Case B
Y
Demand/month
Process time/unit
Avail. time/month
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Market
X
Bottleneck
200 units
1 hour
200 hours
Y
Nonbottleneck
200 units
45 mins
200 hours
16
Market
Assembly
Demand/month
Process time/unit
Avail. time/month
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Yes,
Yes,25%
25%in
inYY
X
Bottleneck
200 units
1 hour
200 hours
Y
Nonbottleneck
200 units
45 mins
200 hours
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Yes,
Yes,25%
25%in
inYY
Case D
Market
Demand/month
Process time/unit
Avail. time/month
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Market
X
Bottleneck
200 units
1 hour
200 hours
Y
Nonbottleneck
200 units
45 mins
200 hours
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Saving Time
What
What are
are the
the consequences
consequences of
of saving
saving time
time at
at each
each
process?
process?
Bottleneck
Nonbottleneck
Rule:
Rule: Bottlenecks
Bottlenecks govern
govern both
both
throughput
throughput and
and inventory
inventory in
in the
the system.
system.
Rule:
Rule: An
An hour
hour lost
lost at
at aa bottleneck
bottleneck is
is an
an
hour
hour lost
lost for
for the
the entire
entire system.
system.
Rule:
Rule: An
An hour
hour saved
saved at
at aa nonbottleneck
nonbottleneck
is
is aa mirage.
mirage.
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21
Exhibit
Exhibit18.9
18.9
Bottleneck (Drum)
Communication
(rope)
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Market
Inventory
buffer
(time buffer)
22
Quality Implications
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Batch Sizes
What
One?
Infinity?
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A bottleneck
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Value of inventory
Dollar Days
Number of days within a department
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26
Marketing
Purchasing
Manufacturing
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Comparing Synchronous
Manufacturing to MRP
MRP
uses backward
scheduling
Synchronous
manufacturing
uses forward scheduling
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Comparing Synchronous
Manufacturing to JIT
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Comparing Synchronous
Manufacturing to JIT
(Continued)
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30
Marketing
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influence
and production
31
Question Bowl
Which of the following are examples of
Goldratts Rules of Production
Scheduling?
a. Balance flow, not capacity
b. Utilization and activation are the same
c. Nonbottlenecks govern throughput
d. All of the above
e. None of the above
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Question Bowl
Which of the following are examples
of Goldratts Theory of
Constraints?
a. Identify the system constraints
b. Decide how to exploit the system
constraints
c. Elevate the system constraints
d. All of the above
e. None of the above
Answer: d. All of the above
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Question Bowl
Which of the following is Goldratts
Goal of the Firm?
a. Reduce costs
b. Increase jobs
c. Increase market share
d. All of the above
e. None of the above
Answer: e. None of the above (The Goal
of the Firm is to make money.)
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Question Bowl
Which of the following are Goldratts
Financial Measurements used to
measure a firms ability to make
money?
a. Net profit
b. Return on investment
c. Cash flow
d. All of the above
e. None of the above
Answer: d. All of the above
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Question Bowl
Which of the following are
Goldratts Operational
Measurements used to measure
a firms ability to make money?
a. Throughput
b. Inventory
c. Operating expenses
d. All of the above
e. None of the above
Answer: d. All of the above
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Question Bowl
According to Goldratt, any resource
whose capacity is less than the
demand placed on it, is considered
which of the following?
a. Nonbottleneck resource
b. Bottleneck resource
c. Capacity-constrained resource
d. A buffer resource
e. None of the above
Answer: b. Bottleneck resource
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Question Bowl
Which of the following kinds of time
make up a cycle time?
a. Setup
b. Processing
c. Queue
d. Wait
e. All of the above
Answer: e. All of the above (The correct
answer can also include Idle Time.)
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Question Bowl
When comparing JIT to synchronous
manufacturing, synchronous manufacturing
has which of the following drawbacks?
a.
Limited to repetitive manufacturing
b.
Requires stable production level
c.
Does not allow much flexibility in the
products produced
d.
All of the above
e.
None of the above
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End of Chapter 18
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