The goal theories

The goal theories - Operation Management Principles...

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Operation Management Principles Bottlenecks (Constraints) A constraint is anything that prevents the system from achieving more of its goal. There is at least one and at most a few in any given system. Constraints can be internal or external to the system. An internal constraint is present when the market demands more from the system than it can deliver. If this is the case, then the focus of the organization should be on discovering that constraint and following the five focusing steps to open it up. An external constraint exists when the system can produce more than the market will bear. If this is the case, then the organization should focus on mechanisms to create more demand for its products or services. Types of internal constraints Equipment: The way equipment is currently used limits the ability of the system to produce more salable goods / services. People: Lack of skilled people limits the system. Policy: A written or unwritten policy prevents the system from making more. In “The Goal: A Process of Ongoing Improvement “ points out the role of bottlenecks ( constraints ) in a manufacturing process, and how identifying them not only allows for removing them, but also yields a useful tool for measuring and controlling the flow of materials. Alex and his team identify the bottlenecks in the book and immediately begin to implement change to speed up capacity. While many questioned the logic of using outdated technology, Alex's team brought in an old machine they received for free in order to increase the capacity of the N/C machine, one of the two bottlenecks. They also were careful to make sure the bottlenecks were not starved and sitting idle. At the second bottleneck, the heat-treat, they simply moved quality control to before the heat-treat instead of after the process. This eliminated to-be-rejected inventory from utilizing valuable time on the bottleneck. By careful observation and manipulation of constraints, Alex and his crew manage to make their plant successful, and in the end Alex is rewarded with a major promotion. This states that any system, any type of production environment, suffers from a bottleneck - a part that limits the flow throughout the rest of the system. Rather like a chain only being as strong as its weakest link. This bottleneck could be a machine, person or department.
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The book identifies nine rules that govern the relationship between bottleneck and non- bottleneck parts of a system. One of these, for example, is the capacity and demand issue - it is all very well identifying the weakest link or bottleneck in a system, but if one make everything work at that speed he/she may not meet demand. We may need to pull the bottleneck or weak link up to the speed of demand, not vice versa. In order to measure performance and therefore any improvements, the books identifies
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This note was uploaded on 04/27/2010 for the course GSM 5660 taught by Professor Ahmad during the Fall '10 term at Zhejiang University.

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The goal theories - Operation Management Principles...

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