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Krajewski SN Chapter 7 - Chapter 7 a b c Constraint...

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Chapter 7 Constraint Management A. Managing Constraints across the Organization 1. Three types of constraints a. b. c. 2. Define Capacity: 3. How are constraint and capacity decisions related? B. Theory of Constraints 1. Measuring capacity, utilization, and performance in TOC a. Capacity can be expressed in terms of outputs or inputs. Output measures Input measures b. Define Utilization c. Performance measures in TOC Inventory (I): Throughput (T): Operating Expenses (OE): Utilization (U): SN:7-1
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SN:7-2 Chapter 7: Constraint Management 2. 7 Key principles of TOC a. b. c. d. e. f. g. 3. Application of TOC involves five steps. a. Step 1: b. Step 2: c. Step 3: d. Step 4: e. Step 5: C. Identification and Management of Bottlenecks 1. Define bottleneck 2. Define throughput 3. Where can bottlenecks occur? 4. Define setup time 5. Identifying bottlenecks in service processes: Example 7.1 6. Application 7.1 Barbara’s Boutique Two types of customers enter Barbara’s Boutique shop for customized dress alterations. After T1, Type A customers proceed to T2 and then to any of the three workstations at T3, followed by T4, and then T7. After T1, Type B customers proceed to T5 and then T6 and T7. The numbers in the circles are the minutes it takes that activity to process a customer.
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Chapter 7: Constraint Management SN:7-3 a. What is the capacity per hour for Type A customers? b. If 30% of customers are Type A customers and 70% are Type B, what is the average capacity? c. When would Type A customers experience waiting lines, assuming there are no Type B customers in the shop? Where would Type B customers have to wait, assuming no Type A customers? 7. Identifying bottlenecks in manufacturing processes: Example 7.2 Diablo Electronics Diablo Electronics manufactures four unique products (A, B, C, and D) that are fabricated in five different workstations (V, W, X, Y, and Z). Each workstation is staffed by a dedicated 8-hour shift worker. Batch setup times are negligible. The flowchart that denotes the path each product follows through the manufacturing process is shown in text Figure 7.2 , where each product’s price, demand per week, and processing times per unit are indicated as well. Inverted triangles represent purchased parts and raw materials consumed per unit at different workstations. Diablo can make and sell up to the limit of its demand per week, and there are no penalties for not being able to meet all the demand. Which of the four work stations (W, X, Y, or Z) has the highest total workload? Solution: Using utilization to determine the bottleneck is not necessary, because the denominator in the utilization ratio is the same for every work station, with one worker per machine at each step in the process. So we identify the bottleneck by computing aggregate work loads at each work station.
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