Redesigning a Process Through Capacity Change

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Redesigning a Process Through Capacity Change
Identify opportunity 1
Figure 6.1
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Utilization
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Capacity Bottlenecks
(a) Operation 2 a bottleneck
Figure 6.2
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Capacity Bottlenecks
(a) Operation 2 a bottleneck
Figure 6.2
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Capacity Bottlenecks
(b) All operations bottlenecks
Figure 6.2
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Theory of Constraints

• Identify the system bottleneck(s)
• Exploit the bottleneck(s)
• Subordinate all other decisions to Step 2
• Elevate the bottleneck(s)
• Do not let inertia set in

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Exploit the Bottleneck(s)

• Create schedules that maximize the throughput of
  the bottleneck(s)

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Subordinate All other Decisions to Step 2
Non-bottleneck resources should be scheduled to
support the schedule of the bottleneck and not
produce more than it can handle.
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Elevate the Bottleneck(s)

• Perform Steps 1-3
• If the bottleneck is still a constraint, consider
  increasing the capacity of the bottleneck

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Do Not Let Inertia Set In

• Actions taken in Steps 3 and 4 will improve the
  throughput and may alter the loads on other
  processes.
• Systems constraints may have shifted

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Economies and Diseconomies of Scale
Figure 6.3
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Capacity Cushions
Capacity Cushion 100 - Utilization Rate ()
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Capacity Decisions
Decision Trees
Figure 6.7