Presentation of operation
management
presented to: sir Salem Baloch
presented by : ariba saeed
CONSTRAINT MANAGEMENT
Theory of constraint
Theory of constraint
Theory of Constraints (TOC) is an overall management
philosophy introduced by Dr. Eliyahu M.Goldratt in his
1984 book titled The Goal, that is geared to help
organizations continually achieve their goal.
The title helps in achieving more of its goal by a very
small number of constraints, and that there is always at
least one constraints.
Core of toc
A constraint is anything that limits a system’s
performance, relative to the system goal.
There is a constraint in a system
If you don’t impact the
constraint, you have no
Effect
The rest is commentary
Assumptions of toc
The underlying assumption of Theory of Constraints is that
organizations can be measured and controlled by
variations on four measures
Throughput
Operating expense
inventory
utilization
Term of productivity
Operating
inventory throughput
expense utilization
constraint
A constraint is anything that
prevents the system from
achieving more of its goal.
There are many ways that
constraints can show up, but
a core principle within TOC is
that there are not tens or
hundreds of constraints.
There is at least one and at
most a few in any given
system. Constraints can be
internal or external to the
system.
Types of constraint
constraint Tangible Intangible
constraint constraint
Identify the Constraint
This implies the need to examine the entire process to
determine which process limits the throughput.
For example, in the example , suppose the
sales department was only selling the product output at
the rate of 3 per hour.
Exploit the Constraint
Find methods to maximize the utilization of the
constraint toward productive throughput.
For example, in many operations all processes are
shut down during lunchtime or during breaks.
.
Subordinate Everything to the
Constraint
Effective utilization of the constraint is the most
important issue. Everything else is secondary.
Elevate the Constraint
Essentially this means to find ways to increase the
available hours of the constraint, including adding
more of it.
continue
Once the constraint is a constraint no longer, find the
new one and repeat the steps
As the constraint effective utilization increases, it may
cease to be a constraint as another process becomes
one.
In that case the emphasis shifts to the new process
constraint.
continue
It is also possible that a sales-related change in the
product mix will cause a different process to become
the constraint.
Lucent technologies
Founded in 1970
Company type is manufacturing
Product was semiconductor ,fiber optic and fiber cable
solution
How many units of throughput can you get out of this
system?
problem
How lucent become more productive?
How lucent improve their performance?
How lucent can increase their profit?
Presented By:
QURAT -UL- AIN RABBANI
<MBH-16-05>
Bottleneck:-
DEFINITION & EXPLANATION:-
What is Bottleneck?
A bottleneck, in a communications context,
A point in the enterprise where the flow
of data is impaired or stopped entirely.
Effectively, there isn't enough data handling
capacity to handle the current volume of traffic.
Occurrence:
Bottlenecks
are typically located by
systematically testing network
performance at various devices along a
data path and isolating devices
performing noticeably slower than other
points
Identification:-
If you can identify the bottlenecks that are slowing down
your production line, you can speed up manufacturing
and increase productivity.
In manufacturing, there is always one part of the process
that is the slowest, and it may change as the production
line adapts.
Continue…..
The bottlenecks you're looking for are more
serious. They stay in one place and continuously
slow down the whole line. Identifying these
bottlenecks will result in major performance
improvements
Accumulation:-
The production line process that accumulates the longest queue is
usually a bottleneck. This method of identifying bottlenecks is
especially useful for manufacturing lines that process individual
items, such as a bottling line.
Full Capacity:-
Most production lines keep track of the percentage utilization of
each production unit. A unit or machine has a fixed capacity, and
the manufacturing process uses each machine at a percentage of
full capacity.
The machine that uses the highest percentage of its capacity is the
bottleneck.
If you increase the capacity of the bottleneck machine, the
capacity of the entire production line increases
Wait times:-
Sometimes, several of a production line's units are running at high
capacities and you need a different method to find the bottleneck.
The manufacturing process usually also tracks down times or waiting
times for machines.
When there is a bottleneck, the machine after the bottleneck has
high wait times, because the bottleneck is holding up production,
and the machine processing its output doesn't get enough material
to work continuously.
Throughput time:-
The throughput of a production line is directly linked to the output of
the bottleneck machine. This characteristic lets you identify the
main bottleneck of a manufacturing process.
If you change the throughput of each of your machines one at a
time, the machine that affects the overall output the most is the
bottleneck.
Physical Bottlenecks:
Examples:-
1.Approvals
A solar project takes 2 months to construct but waits 4 months for
government approval.
2.Manufacturing:-
A step in the middle of a manufacturing process can handle 10 units
an hour when subsequent steps can handle 100 units an hour.
Continue….
3.Transportation:-
The bottleneck in a rail system is often station platforms. For example,
a dozen train lines might share 4 platforms with trains spaced 90
seconds apart. For this reason, an efficiently managed platform with
staff helping people get safely on and off trains can dramatically boost
the throughput of a rail system.
4.Network Bottleneck:-
A slow WIFI router connected to an efficient and high band width
network.
Continue…..
5: Business Processes
Customer service representatives at an airline are unable to handle
a variety of situations without getting approval from a manger.
Managers are often busy meaning that representatives and
customers are often left waiting
