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OPT TOC DBR

Optimized Production Technology


Theory of Constraint
Drum Buffer Rope

Optimized Production
Technology

OPT

History and definition of


OPT

Developed in Israel in early 1970s by Eliyahu


Goldratt
A scheduling approach, using this principle:
Production bottlenecks are the basis for
scheduling and capacity planning
The mechanism, in brief:

Resources are classified as either bottleneck or nonbottleneck


Bottleneck resources are scheduled to maximum
utilization
Non-bottlenecks are scheduled to serve the bottlenecks

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

9 OPT rules
1.
2.
3.
4.
5.
6.
7.
8.
9.

Balance flow, not capacity


Constraints determine non-bottleneck utilization
Utilization and activation of a resource are not synonymous
An hour lost at bottleneck is an hour lost for the total
system
An hour saved at a non-bottleneck is a mirage
Bottlenecks govern both throughput and inventory
The transfer batch may not, and many time should not, be
equal to process batch
The process batch should be variable, not fixed
Schedules should be established by looking at all of the
constraints.
Yosephine Suharyanti 2011
Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

OPT illustration (1)


Processing time (hours)
Job

Routing

Operation
1

20

40

60

30

20

60

10

30

Operation

Job

20

Schedule without OPT approach:


A
B
C
D

X
Y

10

X
Y

20

X
Y
X
30

X
Z

X
Y
40

X
Y
50

Z
Z

60

70

80

Z
Z

90 100 110 120 130 140 150 160 170 180

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

OPT illustration (2)


Schedule with OPT approach (rule no. 9):
Constraint identification: Machine C (verify!)
Schedule the constraint:
A
B
C
D

Z
10

Z
20

Z
30

Z
40

Z
50

Z
60

X
70

X
80

X
90

X
100

110

120

130

140

150

160

Schedule other resources based on constraint schedule:


A
B
C
D

X
Z
10

Z
20

Z
30

Z
40

Z
50

X
Z
60

X
Z
70

Z
X
80

Z
X
90

Z
110

Z
120

130

140

150

160

Z
X
100

Schedule other items which are not related to constraint:


A
B
C
D

X
Y
Z
10

Y
Z
20

Y
Z
30

Z
Y
40

Z
Y
50

X
Z
60

X
Z
70

Z
X
80

Z
X
90

Z
110

Z
120

130

140

150

160

Z
X
100

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

OPT illustration (3)

Comparison of the result:

Makespan:
without OPT approach: 180 hours
with OPT approach: 160 hours

Machine utilization:
Machine

Without OPT

With OPT

44%

50%

33%

38%

56%

63%

28%

31%

Average

40%

45%

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Theory of
Constraint
TOC

History and definition of


TOC

An outgrowth and enhancement of OPT


Developed by Eliyahu Goldratt in 1988
Other names: OPT thoughtware,
synchronous production, synchronized
manufacturing
A management philosophy (compare to
OPT that is a technical approach)
Has wider application than OPT, it is not
just production planning and control

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Principles of TOC

The basic principle of TOC: systems throughputs are


determined by its constraint
Constraints categories:

Internal resource constraint --- classic bottleneck: machine,


worker, tool
Market constraint --- market demand less than production
capacity
Policy constraint --- a policy dictates the production rate

TOC focus: the role constraints play in systems in order to


improve system performance toward the goal
Instead of removing the constraints, TOC concerns on
utilizing the constraint, because in many cases, constraints
are given and we could not remove it!
Yosephine Suharyanti 2011
Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

5 steps of TOC
1.
2.
3.
4.
5.

Identify the systems constraint


Decide how to exploit the systems constraint
Subordinate everything else to the decision
made in step 2
Elevate the systems constraint (elevate = make
it possible to achieve the higher performance)
If in the previous steps a constraint has been
broken, go back to step 1
If we do it again and again, it becomes
similar to continuous improvement in TQM
Yosephine Suharyanti 2011
Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Measuring system
performance in TOC

Two types of performance:

Financial
Operational

Financial measurement: net profit, ROI,


cash flow
Operational measurement:

Throughput
Inventory
Operating expenses (labor, overhead, etc.)

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

TOC technique
Cause-and-effect analysis (fishbone
diagram)
Evaporating cloud
Buffer management
Drum-buffer-rope

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Cause-and-effect analysis

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Evaporating Cloud (1)

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Evaporating cloud (2)

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Evaporating cloud (3)

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Buffer management
Buffer to maximize the
utilization of the constraint

max

actual

80

45

40

20

40

35

40

Raw
Materials

Peeler

Slicer

Cooker

Salter

Bag
Packer

Consumer

20

20

20

80

35

45 5

40 20 20

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Drum-Buffer-Rope
DBR

Definition of DBR
12

WIP
A

Total 12
C

RM

FG
7

X 5.5
5

DBR is a an essential part of the TOC and


is used to manage bottlenecks

The goal is to schedule the bottleneck for full


utilization and subordinate the rest of the system
to the needs of the bottleneck
Yosephine Suharyanti 2011
Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

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DBR mechanism
One way to insure the continuous
operation of the bottleneck is to use a
CONWIP mechanism from the beginning of
the line, up to and including the bottleneck
(the pull side)
Push the material downstream once it
passes the bottleneck (the push side)
Therefore, the DBR system is a mixed
pull/push control system

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Example: Potato Chips

Organizational Goal: Make quality potato chips


for mass market consumption
Consumer demand is 120 million pounds of
chips per year (350 million pounds of potatoes);
365 days per year, 24 hours per day
Our suppliers can provide twice the amount the
consumer demands
The manufacturing process is shown below

Raw
Materials

Peeler

Slicer

Cooker

Salter

Bag
Packer

Yosephine Suharyanti 2011


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Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Consumer

Example: Potato Chips


(cont.)

Output is measured below in thousands of pounds


of potatoes per hour
Seeking to produce as much as possible, we
purchase the maximum amount our suppliers can
provide
Current production methods result in a large
amount of unwanted work in process inventory

max

actual

80

45

40

20

40

35

40

Raw
Materials

Peeler

Slicer

Cooker

Salter

Bag
Packer

Consumer

20

20

20

80

35

45 5

40 20 20

Yosephine Suharyanti 2011


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Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Applying TOC and DBR


Step

1: Identify the constraint

The cooker is the drum for the process


Set

the tempo for other operations


Tell upstream operations what to produce
Tell downstream operations what to expect

max

actual

80

45

40

20

40

35

40

Raw
Materials

Peeler

Slicer

Cooker

Salter

Bag
Packer

Consumer

20

20

20

80

35

45 5

40 20 20

Yosephine Suharyanti 2011


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Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Applying TOC and DBR


Step

2: Exploit the constraint

Set a timed buffer between the slicer and


the cooker to ensure it is always
processing to full capacity
Precaution

to keep constraint running if


upstream operations are interrupted
1.2 min.

max

actual

80

45

40

20

40

35

40

Raw
Materials

Peeler

Slicer

Cooker

Salter

Bag
Packer

Consumer

20

20

20

80

35

45 5

40 20 20

Yosephine Suharyanti 2011


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Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Applying TOC and DBR


The suggested buffer size is of the
total actual lead time of the system
(from Sipper & Bulfin)
The best way to set the buffer size is by
experimentation. Start with an ample
level of the buffer, check the range of
buffer variations, and reduce it if
possible

Yosephine Suharyanti 2011


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Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Applying TOC and DBR (cont.)

Step 3: Subordinate the process

max

actual

Set the rest of the processes to produce only as much


as the drum can process and eliminate unnecessary
work in process inventory
Maintain a rope which ensures we receive raw materials
from suppliers only when the cooker has consumed
potatoes from the buffer
80

45

40

20

40

35

40

Raw
Materials

Peeler

Slicer

Cooker

Salter

Bag
Packer

Consumer

20

20

20

20

20

20

20

Yosephine Suharyanti 2011


Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto

Applying TOC and DBR (cont.)

Step 4: Elevate the constraint

Increase the processing capacity of the cooker


to align production more closely with consumer
demand (i.e. buy another cooker)

Step 5: Return to step 1 if constraint shifts

max

actual

80

45

40

40

40

35

40

Raw
Materials

Peeler

Slicer

Cooker
X2

Salter

Bag
Packer

Consumer

40

40

40

40

40

35

35

Yosephine Suharyanti 2011


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Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto