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Application of Theory of constraints to Stock Storage

Optimization in Ethnographic way

Kartiki Jagtap
, Dr.A.eelakanteswara !ao
M.Tech. (Computer Integrated Manufacturing), Mechanical Department
National Institute of Technology, Warangal, India

!ssociate "rofessor, Mechanical Department

National Institute of Technology, Warangal, India.
Abstract As a result of ever-increasing competition in the
market, for a company, the problem of responsiveness to the
market, worsens every passing day. A substantial part of this
non-value added time occurs in the warehousing department of
the company. The practically proven to be effective concept of
Theory of Constraints is been applied here. Better managed
storage locations can significantly lower this time. This paper
presents a comfortable and easy to learn nomenclature for the
warehousing department in an thnographic way, so as to
reduce the non-value added time in searching for particular
location of part.
Keywords# Theory of Constraints, !nventory naming
convention, "on-value added time
$. $T!OD%&T$O
'op(larize) *y Eliyah( +ol)ratt an) his *ook The
+oal ,+ol)ratt an) &o-, ./012, the theory of constraints is a
management philosophy that seeks to increase system
thro(ghp(t ,efficiency or system performance meas(re) *y
sales2 *y i)entifying those processes that are constraining the
system the *ottlenecks. $t is *ase) on a systems approach
that simplifies the impro3ing an) managing of comple-
organizations *y foc(sing on the few physical an) logical
constraining points. E3en more, it pro3i)es a way to *(il) an)
implement the r(les or policies that synchronize the whole
company to achie3e an or)er of magnit()e impro3ement in
the performance of the system as a whole.
The insight of The Theory of &onstraints is that only
a few elements ,constraints2 in a *(siness control the res(lts of
the entire organization. The Theory of &onstraints has three
(n)erlying ass(mptions4
.. &onsistency4 There are no conflicts in nat(re4 if two
interpretations of a nat(ral phenomenon are in
conflict, one or possi*ly *oth m(st *e wrong
5. &ommon sense4 6A chain is no stronger than its
weakest link7, *asis for the constraints approach.
STO' 8O&%S$+ O E88$&$E&9.
:. Organizational meas(rements4 Any organization can
*e meas(re) in terms of three meas(rements ;
Thro(ghp(t, $n3entory an) Operational e-penses.
Theory of &onstraints is a pro3en metho) that can *e
(se) to increase thro(ghp(t ,sales2, relia*ility, an) <(ality
while )ecreasing in3entory, =$', late )eli3eries, an)
o3ertime. The 8i3e 8oc(sing Steps of Ongoing $mpro3ement
.. $)entify the system>s constraint
5. Deci)e how to e-ploit the system>s constraint
:. S(*or)inate e3erything else to the prior )ecisions
?. Ele3ate the system>s constraint
@. $f, in the prior steps, the constraint has *een
*roken, go *ack to step one
Ethnography is the *ranch of anthropology that
pro3i)es scientific )escription of in)i3i)(al h(man societies
an) st()ies origins an) social relationships of h(man *eings.
$n this paper, (se of TO& has *een ma)e in or)er to
re)(ce the nonA3al(e a))e) time on the shop floor. Each
company re<(ires a stan)ar) nomenclat(re for the
i)entification of storage locations of each part. This
nomenclat(re is mostly (se) *y the workers in the company
who are in3ol3e) in storing the part at appropriate places
when it arri3es, han)ling an) retrie3ing it when it is re<(ire)
on the shop floor. So, the nomenclat(re sho(l) *e easy to
(n)erstan) an) (se an) get ac<(ainte) with. This will
minimize the time in3ol3e) in the f(tile acti3ities.
As first step in applying Theory of &onstraints is
fin)ing a constraint. So, the total time for a Do* to get
complete), consists of the material han)ling time. That means
this nonA3al(e a))e) time in han)ling of the parts is
constraint. This time is maDorityly increase) *y workers in
searching for the part. This is mainly )(e to conf(sion or lack
of ac<(aintance to the wareho(se. To re)(ce this conf(sion
the storage nomenclat(re sho(l) *e in s(ch a way that, it is
easy to (n)erstan) an) fin) the part is less time. So the
nomenclat(re intro)(ce) was as in a format4
8ig. . 'ropose) $n3entory naming &on3ention
- This co)e is .. )igits long.
- The first two places stan)ing for a partic(lar pro)(ct
category in the in)(stry like ?= ; for fo(r wheeler
- The ne-t two places stan)ing for a partic(lar
)epartment in the pro)(ct category>s plant. E.g. AS ;
assem*ly store
- @
an) 1
position correspon)s to the form of the
storage location. E.g. 'E ; platform
- F
position represents the zone in the limite) storage
location, specifie) *y the pre3io(s information. E.g.
A, G or &...
- 0
an) /
places stan) for row n(m*er, ranging from
- .H
an) ..
places stan) for col(mn n(m*er, ranging
from HA//, partic(lar to the row n(m*er.
The total no of parts that can *e accommo)ate), on a single
storage location with this nomenclat(re wo(l) *e ,//"//2 i.e.
$$$. D$S&%SS$O
E-ample .4 To ela*orate o3er it a little, we consi)er an
in)(stry ,one of the a(tomoti3e in)(stries in $n)ia, where $
ha3e employe) this approach2 which man(fact(res two, three
an) fo(r wheelers. !aw materials are or)ere) from 3en)ors,
which nee) to *e store) in wareho(sing )epartment of each
pro)(ct categories plant. There is fa*rication shop, paint shop,
man(fact(ring line an) then an assem*ly store for each
pro)(ct category.
8or the c(rrent nomenclat(re, to make applica*le to
this scenario
'artic(lar )epartment can *e )esignate) as

8S ; fa*rication shop
'S ; paint shop
BE ; mezzanine floor
AS ; assem*ly stores
e-t the partic(lar storage locations can *e
)esignate) as
C! ; Cigh rise !ack Eayo(ts
C= ; Car)ware !ack &omponents Storage Eocations
'E ; 'latform Storage location
&+ ; &ages
B8 ; Bezzanine 8loor Storage Eocation
D& ; Dock, (nloa)ing place
!B ; !amp, Cea3y an) less fre<(ently nee)e) parts.
$I. &O&E%S$OS
The gi3en case can *e applie) to any kin) of in)(stry,
incl()ing small scale $n)ian in)(stries, where a(tomatic
storage an) retrie3al systems are not (se). This nomenclat(re
is easy to (n)erstan) an) it is easy to fin) the )esira*le part as
the 1
an) F
)igits clearly in)icate the form of storage . a
worker, *y 3is(al re3iew only, can search for a part, which
re)(ces the nonA3al(e a))e) time.
J.K &o-, JeffL +ol)ratt, Eliyah( B. ,./012. The goal# a process of ongoing
impro$ement. J&rotonAonAC()son, 9K4 orth !i3er 'ress.
J5K +ol)ratt, Eliyah( B. ,.//F2. Critical Chain. +reat Garrington, BA4
orth !i3er 'ress.
J:K +ol)ratt, Eliyah( B.. Theory of Constraints. J+reat Garrington, BAK4
orth !i3er 'ress