Capacity analysis case d goldratts rules book the

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Capacity analysis. Case D Goldratt’s rules Book: the goal by E.Goldratt. - Rule 1: Do not balance capacity, balance the flow - Rule 2: The level utilization of a non-bottleneck resource is not determined by its own potential but by some other constraint in the system
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- Rule 3: Utilization and activation of a resource are not the same - Rule 4: An hour lost at a bottleneck is an hour lost for the entire system - Rule 5: An hour saved at a non-bottleneck is a mirage. - Rule 6 : Bottlenecks govern both throughput and inventory in the system Rule 1 : The production flow should be balanced NOT the production capacity. Example: Analogy between a production process and a boy-scouts march. Consider a boy- scouts march in a single line, where it’s NOT possible to advance any member. Initially: the line stays compact… As time passes: the length of the line is extended… The line elongation is caused by a combination of statistical fluctuations and dependent processes (no one can advance to a companion): - Intrinsic phenomena to some members of the excursion (slower Herbie’s rhythm). Number 3 - Random phenomena (thirst, tiredness, tying a shoe, …). Breakdown of machinery It can happen that Y (the second), after tying a shoe, recovers the line by walking faster or not. - Intrinsic problems: lack of capacity in any work centre. - Random processes: lack of punctuality in delivery terms of raw material, breakdowns, quality problems, etc.) The product in progress is the length of the line. The quantity of sold products is the pathway already travelled (pathway exceeded by last element of the line). The best solution is to maintain a compact line: XY Z W
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A. Place the members of the excursion in reverse order to their ability to walk ( Herbie the first). B. Increase the capacity of the slowest element of the march, the first is now setting the pace. The best solution for the production system is: A. Not to worry to balance the production speed but try to balance the production rate of not limiting resources at the rhytm of bottlenecks. B. Try to elevate bottlenecks capacity until a balance is achieved with market demand. Rule 2 : The use of a non-bottleneck resource is determined by another constraint of the system not by its own capacity. Example: Three work centres: WA, WB & WM (mounting) - 100% capacity to obtain high performance - Work centres capacity: 1.000 hours/period - Each unit of the final product requires: o 1 hour in CTA, 2 hours in CTB and 1 hour in CTM - Demand of the final product per period: 1.000 units The bottleneck is in CTB because its capacity just can satisfy 50% of the market demand. Case A - A non bottleneck work centre (WA) supplies components to bottleneck centre WB: WA WB. - The demand is 1.000 units/period. - Only 500 final products can transform in income. Other 500 products in progress are waiting to be processed.
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