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Chapter 18
Synchronous
Manufacturing and
Theory of Constraints
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OBJECTIVES
Goldratts Rules
Performance Measurement
Synchronous Manufacturing
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Goldratts
Theory of Constraints
(TOC )
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Performance Measurement:
Financial
Net profit
Return on investment
Cash flow
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a survival measurement
2006 The McGraw-Hill Companies, Inc., All
Performance Measurement:
Operational
1. Throughput
2. Inventory
3. Operating expenses
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10
Productivity
Does
not guarantee
profitability
Has throughput increased?
Has inventory decreased?
Have operational expenses
decreased?
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Unbalanced Capacity
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(Constant)
10
12
10
14
(Constant)
10
(Variable)
10
12
14
When
one
process
takes
longer
than the
average,
the time
can not
be made
up
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13
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14
25%
25%in
inYY
Case A
X
Demand/month
Process time/unit
Avail. time/month
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Market
X
Bottleneck
200 units
1 hour
200 hours
Y
Nonbottleneck
200 units
45 mins
200 hours
15
Yes,
Yes, 25%
25%in
inYY
Case B
Y
Demand/month
Process time/unit
Avail. time/month
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Market
X
Bottleneck
200 units
1 hour
200 hours
Y
Nonbottleneck
200 units
45 mins
200 hours
16
Market
Assembly
Demand/month
Process time/unit
Avail. time/month
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Yes,
Yes,25%
25%in
inYY
X
Bottleneck
200 units
1 hour
200 hours
Y
Nonbottleneck
200 units
45 mins
200 hours
17
Yes,
Yes,25%
25%in
inYY
Case D
Market
Demand/month
Process time/unit
Avail. time/month
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Market
X
Bottleneck
200 units
1 hour
200 hours
Y
Nonbottleneck
200 units
45 mins
200 hours
18
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Saving Time
What
What are
are the
the consequences
consequences of
of saving
saving time
time at
at each
each
process?
process?
Bottleneck
Nonbottleneck
Rule:
Rule: Bottlenecks
Bottlenecks govern
govern both
both
throughput
throughput and
and inventory
inventory in
in the
the system.
system.
Rule:
Rule: An
An hour
hour lost
lost at
at aa bottleneck
bottleneck is
is an
an
hour
hour lost
lost for
for the
the entire
entire system.
system.
Rule:
Rule: An
An hour
hour saved
saved at
at aa nonbottleneck
nonbottleneck
is
is aa mirage.
mirage.
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21
Exhibit
Exhibit18.9
18.9
Bottleneck (Drum)
Communication
(rope)
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Market
Inventory
buffer
(time buffer)
22
Quality Implications
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Batch Sizes
What
One?
Infinity?
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A bottleneck
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Value of inventory
Dollar Days
Number of days within a department
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26
Marketing
Purchasing
Manufacturing
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Comparing Synchronous
Manufacturing to MRP
MRP
uses backward
scheduling
Synchronous
manufacturing
uses forward scheduling
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Comparing Synchronous
Manufacturing to JIT
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Comparing Synchronous
Manufacturing to JIT
(Continued)
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30
Marketing
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influence
and production
31
End of Chapter 18
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