10_Constraint Mgt

10_Constraint Mgt - Constraint Management 2012 Lew Hofmann...

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© 2012 Lew Hofmann Constraint Management
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© 2012 Lew Hofmann Capacity is the output volume that can be produced in a given period of time. There are two basic categories of capacity. Peak /Full /Rated /Design/ Maximum Effective Capacity A Bottleneck is a constraint point in process. EG: The slowest machine or person in a production line creates a bottleneck. Line balancing attempts to eliminate bottlenecks so that capacity and efficiency are increased.
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© 2012 Lew Hofmann Two ways to measure Capacity OUTPUT MEASURES of capacity Common in Product-Focused (Line Flow) layouts Widgets per hour – Claims processed per shift Customers serviced per day INPUT MEASURES of capacity Common in Process-Focused (Flexible Flow) layouts Used where machines and/or people are underutilized. Machines available Workers available
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© 2012 Lew Hofmann Most facilities are planned to operate at less than maximum capacity! Peak Capacity is not a sustainable level of operation. Only ideal conditions allow operation at full capacity (maximum capacity or peak capacity). We plan to operate at some level less than maximum, called Effective Capacity Even at effective capacity firms often want a safety margin for high demand times. This is called a capacity cushion .
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© 2012 Lew Hofmann Effective Capacity It is the target-level of capacity It is the highest level of capacity that we can maintain over long periods of time. It is almost always less than peak capacity. It assumes that conditions won’t be ideal. It is the planned level of operation. Capacity Cushion is a safety margin between our planned capacity and our actual level of operation.
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© 2012 Lew Hofmann Measures of Capacity Peak Capacity Effective Capacity Average Output 25 22 20 Students in a computer lab classroom Target level for sustainability Varies with demand (May occasionally go above effective capacity.) Not sustainable
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© 2012 Lew Hofmann Capacity Cushion Is the amount of unused Effective Capacity. The difference between Effective Capacity and the Current Average Output. Expressed as a % of effective capacity it is… Effective Capacity – Average Capacity Effective Capacity Expressed as an amount, it is… (Effective Capacity - Average Capacity)
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© 2012 Lew Hofmann Capacity Cushion Peak Capacity Effective Capacity Average Output 1000 900 800 Capacity Cushion of 100 units Units Per Day Capacity Cushion = 11.2% of effective capacity. (900-800 ÷ 900) 11.2%
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© 2012 Lew Hofmann UTILIZATION (Two measures) Utilization is the percent of capacity that is currently being used. It can be measured as peak utilization or effective utilization .
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10_Constraint Mgt - Constraint Management 2012 Lew Hofmann...

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