Lecture Operations now: Supply chain profitability and performance (3/e): Chapter 15 - Byron J. Finch

Chapter 15 - Constraint management: Simplifying complex systems. After reading the material in this chapter, you should be able to: Define a constraint; compare utilization and activation from a constraint management perspective; describe the global measures of throughput, inventory, and operating expense, and compare them to traditional global measures;. | Chapter 15 Constraint Management: Simplifying Complex Systems Learning Objectives Define a constraint. Compare utilization and activation from a constraint management perspective. Describe the global measures of throughput, inventory, and operating expense, and compare them to traditional global measures. Explain the five-step focusing process of constraint management. Explain how systems can be protected from disruptions by using time buffers. Describe how time buffers function and how they affect the exploitation of a constraint. Explain what is meant by a constraint buffer, a shipping buffer, and an assembly buffer. Differentiate between a production batch and a transfer batch. Compute the appropriate product mix for a constrained production system. Compare the kanban system to the buffering system used in constraint management. 15- Introduction: Maximizing System Output The early development of constraint management (CM) can be credited to one individual, Eliahu Goldratt. The | Chapter 15 Constraint Management: Simplifying Complex Systems Learning Objectives Define a constraint. Compare utilization and activation from a constraint management perspective. Describe the global measures of throughput, inventory, and operating expense, and compare them to traditional global measures. Explain the five-step focusing process of constraint management. Explain how systems can be protected from disruptions by using time buffers. Describe how time buffers function and how they affect the exploitation of a constraint. Explain what is meant by a constraint buffer, a shipping buffer, and an assembly buffer. Differentiate between a production batch and a transfer batch. Compute the appropriate product mix for a constrained production system. Compare the kanban system to the buffering system used in constraint management. 15- Introduction: Maximizing System Output The early development of constraint management (CM) can be credited to one individual, Eliahu Goldratt. The 1984 book The Goal brought Constraint Management, or as it is sometimes known “The Theory of Constraints” to the forefront. Numerous extensions, applications, and associated techniques have been developed since. 15- Defining a Constraint A constraint is anything that inhibits a system’s progress toward its goals. It could be a resource (labor, machine capacity, warehouse space, etc.) It could be a policy (no deliveries on Sunday, no more than 6 hours of overtime per employee, etc.) It could be inputs (raw material availability, electricity availability, etc.) It could be an external force (demand) Constraint Management: A framework for managing the constraints of a system in a way that maximizes the system’s accomplishment of its goals. 15- Defining a Constraint Work center 3 is a constraint. The system cannot produce at a rate faster than 9 minutes per unit. If all the other work centers slowed down to match work center 3, the system would not get any slower Exhibit .

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