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Forward to Instructors
Dealing with Production Bottlenecks

Mini-case
Be Sure To Review Notes

Area And Related Word
Document
DP Johnson, 2005
Dealing with Production

Bottlenecks
Mini-case
The concepts and approach applied in these examples
come from the book The Goal by Eli Goldratt. This book
is required reading for anyone interested in manufacturing,
production operations and productivity improvement
DP Johnson, 2005
The Goal
Every system was built for a purpose
Must define the systems global goal
Actions of and decision about
subsystems must be judged on
impact towards the global goal
From The Goal

by Eli Goldratt
Constraints
Anything that limits a system from
achieving higher performance vs its
goal
Critical Constraint
The active constraint

The one that is currently limiting the
system
From The Goal
by Eli Goldratt
Flow and Constraints

200
400
350
#s are Maximum
Production Rates
In Units/Hour
250
500
225
250
220
300
250
250
250
300
500
600
Flow and Constraints

300
350
400
#s are Maximum
Production Rates
In Units/Shift
250
500
300
300
300
275
1000
300
275
275
300
500
50% / 50% Split
600
Five Steps
From The Goal

by Eli Goldratt
Identify the Systems Constraints

Decide how to exploit the systems
constraints
Subordinate everything else to the
above decision
Elevate the systems constraints
If in the previous steps a constraint
has been broken, go back to step 1
Identify the Systems Constraints

Prioritize by impact on the
goal otherwise too much
trivia
Specifically identify the active
constraint
Find a numeric capacity value
if possible
From The Goal

by Eli Goldratt
Decide how to exploit the systems

constraints
Find ways to maximize output of
bottlenecks aka active constraints
Find ways to offload and maximize
effectiveness of this resource
From The Goal

by Eli Goldratt
Subordinate everything else to the

above decision
Priorities for
_________
_________
_________
Do you need to run other resources

at full capacity?
Elevate the systems constraints
Can you
Increase the capacity of the bottleneck?
Speed up?
Add more available time?
Reduce setup time and other downtime?
Cut the constraint resource out of some

processes?
Use alternate resources?
Improve the effectiveness
Inspection prior to bottleneck?
Can we break the constraint?
If in the previous steps a constraint

has been broken, go back to step 1
Once you break the critical / active
constraint there will be a new one
Find the new one and repeat the
process
From The Goal

by Eli Goldratt
Flow and ConstraintsID Constraints

300
350
400
250
500
300
250
250
200
300
250
#s are Maximum
Production Rates
In Units/Shift
250
300
300
500
Exploit
Subordinate
Elevate
Break/Repeat
600
50/50 Split
What if demand is = 275 per shift?
Multiple Product Flows

300
300
500
200
300
250
400
#s are Maximum
Production Rates
In Units/Hour
250
250
300
What if demand is
150 per hour of A
150 per hour of B
250
250
Flow for A
Flow for B
Assembly Product Flows

75
100
350
150
175
Production Rates
In Units/Shift
Assembly Station
175
175
300
55
What if demand for

assemblies is 150 per shift
Combines part A
and part B into one
assembly which is
sold as a complete
product
Capacity:
75 assemblies per shift
Flow for A
Flow for B
Cycle Time Example

Machine 1
2 Min/unit
of C
1.5 min/unit
of D
Machine 3
1.5 min/unit of C
1.5 min/unit of D
Machine 2
What if demand is 150

assemblies per shift and
One shift has 410 available
production minutes?
Machine 4
3 Min/unit
of C
1 min/unit
of D
Machine 5
Assembly Station
Combines part C
and part D into one
assembly which is
sold as a complete
product
Standard Time:
3 min per assembly
Flow for C
Flow for D
Example 1
Bobco makes a product consisting

of these 9 parts which are
manually assembled.
There are 8 plastic parts and one
turned metal part. A process flow
diagram is on the next page
Process Map
Forecasts
Orders
Bobco
Marketing
Customer Service
Orders
Warehouse
Production Control
Production Schedules
Finished Goods
Matl Hdl
Plastic Molding
Deflash/Inspect
8 Parts/Assy
Distribution
Parts
CNC Turning
Final Assembly
Process
1 Part/Assy
Cutoff Saw
WIP - Assy
Raw Matl
Matl Hdl
Cutoff Saw
CNC Turning
Deflash/Inspect
Plastic Molding
Final Assembly
Standard Time/Part
(min)
1.6
1.5
1.5
0.25
3
# of Machines
(qty)
1
4
18
3
2
Raw Material
Example Can you find the bottleneck if all departments run 40 hrs/week?
- Can you meet a forecasted demand for 2000 units per week?
Process Map
Forecasts
Orders
Bobco
Marketing
Customer Service
Orders
Warehouse
Production Control
Finished Goods
Matl Hdl
Plastic Molding
Deflash/Inspect
FIND THE CAPACITY OF THE SYSTEM

8 Parts/Assy
Distribution
Parts
CNC Turning
Final Assembly
Process
1 Part/Assy
Cutoff Saw
WIP - Assy
Raw Matl
Matl Hdl
Cutoff Saw
CNC Turning
Deflash/Inspect
Plastic Molding
Final Assembly
Standard Time/Part
(min)
1.6
1.5
1.5
0.25
3
# of Machines
(qty)
1
4
18
3
2
Raw Material
Example Can you find the bottleneck if all departments run 40 hrs/week?
- Can you meet a forecasted demand for 2000 units per week?
Samco Mini-Case Problem
Samco makes three products

A B and C.
The Three are very similar..
A
two metal and three plastic components
assembled manually
B
assembled manually
C
assembled manually
Parts for
Product A
Parts for
Product B
Parts for
Product C
The process map and details are shown on the following pages
Process MapTOC Project Samco
Forecasts
Orders
Marketing
Customer Service
Orders
Warehouse
Production Control
Matl Hdl
Finished Goods
Pad Print
Deflash/Inspect
Skip
Parts
Assembly
3 Parts/Unit
Plastic Molding
Distribution
CNC Turning
2 Parts/Unit
Forecasted Demand/Week
A
3900
B
2200
C
3100
WIP - Assy
Cutoff Saw
Standard Times
Product A Product B Product C Shifts
(min)
(min)
(min)
(#/day)
Cutoff Saw
1.60
1.60
1.60
2.00
CNC Turn
1.50
2.00
3.00
1.00
Deflash/Inspect
1.50
1.50
1.50
2.00
Plastic Molding
0.25
0.25
0.25
2.00
Pad Print
1.00
1.00
1.00
Final Assembly
3.00
3.50
3.00
2.00
Raw Matl
Matl Hdl
Raw Material
Machine Availability
(hrs/week/machine)
77
37
77
77
37
77
Qty of Machines
(#)
7
12
9
9
8
12
The production system is having problems. WIP is piling up all

over the factory. Orders are going out late. Departments are
requesting overtime to catch up, but even when overtime is
authorized for all departments the situation does not improve.
When overtime is authorized the backlogged orders are filled,
but WIP seems to grow, adding to the confusion and congestion
on the floor, which seems to generate additional request for
overtime to catch up and clear out WIP and new late orders.
Process MapTOC Project
Forecasts
Orders
Marketing
Customer Service
Orders
Warehouse
Production Control
Matl Hdl
Finished Goods
Pad Print
Deflash/Inspect
Skip
Parts
Assembly
3 Parts/Unit
Plastic Molding
Distribution
CNC Turning
2 Parts/Unit
A
3900
B
2200
C
3100
WIP - Assy
Cutoff Saw
Standard Times
(min)
(min)
(min)
(#/day)
Cutoff Saw
1.60
1.60
1.60
2.00
CNC Turn
1.50
2.00
3.00
1.00
Deflash/Inspect
1.50
1.50
1.50
2.00
Plastic Molding
0.25
0.25
0.25
2.00
Pad Print
1.00
1.00
1.00
Final Assembly
3.00
3.50
3.00
2.00
Raw Matl
Matl Hdl
(hrs/week/machine)
77
37
77
77
37
77
Qty of Machines
(#)
7
12
9
9
8
12
Raw Material
What can be done? The company has no money for capital

investments (new equipment) but is willing to consider
implementing recommendations that do not involve capital
spending.
Process MapTOC Project
Forecasts
Orders
Marketing
Customer Service
Orders
Warehouse
Production Control
Matl Hdl
Finished Goods
Pad Print
Deflash/Inspect
Skip
Parts
Assembly
3 Parts/Unit
Plastic Molding
Distribution
CNC Turning
2 Parts/Unit
A
3900
B
2200
C
3100
WIP - Assy
Cutoff Saw
Standard Times
(min)
(min)
(min)
(#/day)
Cutoff Saw
1.60
1.60
1.60
2.00
CNC Turn
1.50
2.00
3.00
1.00
Deflash/Inspect
1.50
1.50
1.50
2.00
Plastic Molding
0.25
0.25
0.25
2.00
Pad Print
1.00
1.00
1.00
Final Assembly
3.00
3.50
3.00
2.00
Raw Matl
Matl Hdl
Raw Material
(hrs/week/machine)
77
37
77
77
37
77
Qty of Machines
(#)
7
12
9
9
8
12

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Forward to Instructors

Dealing with Production Bottlenecks

Be Sure To Review Notes

Dealing with Production

From The Goal

The active constraint

Flow and Constraints

Flow and Constraints

50% / 50% Split

From The Goal

Identify the Systems Constraints

Identify the Systems Constraints

From The Goal

Decide how to exploit the systems

From The Goal

Subordinate everything else to the

Do you need to run other resources

Elevate the systems constraints

Cut the constraint resource out of some

Inspection prior to bottleneck?

Can we break the constraint?

If in the previous steps a constraint

From The Goal

Flow and ConstraintsID Constraints

What if demand is = 275 per shift?

Multiple Product Flows

Assembly Product Flows

What if demand for

Cycle Time Example

What if demand is 150

Bobco makes a product consisting

FIND THE CAPACITY OF THE SYSTEM

Samco Mini-Case Problem

Samco makes three products

Process MapTOC Project Samco

The production system is having problems. WIP is piling up all

Process MapTOC Project

What can be done? The company has no money for capital

Process MapTOC Project

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