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RECOGNIZING AND MANAGING
BOTTLENECKS
IN PROCESS PLANTS
Peter L. King
Lean Dynamics, LLC
October 2011
AGENDA
 Definition of a bottleneck
 Bottlenecks in process plants
 Capacity Constraint Resources (CCRs)
 Finding the bottleneck ~ Value Stream Mapping
 Root causes of bottlenecks
 Bottleneck management ~ Theory of Constraints
 Bottlenecks can move!
 Successive bottlenecks
 Additional examples
© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED 2

BOTTLENECK DEFINITION
 Any resource where capacity is less than or equal to Takt (rate)

 Any resource whose capacity is less than or equal to the
demand place upon it
 Any process step with a utilization of 100% or greater
 The process step with the lowest capacity

WHY BOTTLENECKS REQUIRE ATTENTION
 A primary objective of Lean is to achieve smooth continuous flow

 Bottlenecks restrict flow
 Bottlenecks cause inventory
 Bottleneck management requires more inventory
 A bottleneck may prevent you from making Takt
-->
 Thus bottlenecks must be identified
and opened up as much as practical
 And bottlenecks must be very well managed
BOTTLENECKS IN
PROCESS PLANTS
5
© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED
BOTTLENECKS IN PROCESS PLANTS
 In parts manufacture and assembly processes –

people are often the limiting factor
 So managing bottlenecks focuses on people
 Appropriate staffing
 Task leveling
 Judicious use of overtime, extra shifts
 In most process plants, throughput is limited by equipment -
not by people
 So managing bottlenecks becomes optimization of the
performance of the bottleneck step

 Examples of process bottlenecks

 Paper making – lineal speed of the web processing equipment
 Paint manufacture – resin production batch time
 Synthetic fiber manufacturing – threadline windup speed or
meter pump capacity
 Batch chemicals – reaction time
 Synthetic rubber – chemical reaction time, extrusion rates
 Additional labor or overtime won’t help
 Most plants are run 24 x 7, so running additional shifts is not
an option

CAPACITY CONSTRAINTS
 Throughput can be limited by equipment design, by the inherent

capacity or a piece of process equipment
 Throughput can be limited by a piece of equipment ‘s performance
 Reliability issues
 Yield losses
 Changeover time
 Throughput can also be limited by equipment scheduling, and by
how well flow is synchronized with other process steps
 A Capacity Constraint Resource (CCR) is defined as:
Any resource which, if not properly scheduled and managed, is likely to cause
the actual flow of product through the plant to deviate from the planned flow.
Synchronous Manufacturing, Umble and Srikanth, 1990

CAPACITY CONSTRAINT IN CEREAL PLANT
SHAPE MANUFACTURING
STORAGE
SILOS
PACKAGING
FLAKE MANUFACTURING
9
CAPACITY CONSTRAINT IN CEREAL PLANT
SHAPE MANUFACTURING
Any resource that

has enough
effective capacity to
meet customer STORAGE
demand – but can’t SILOS
because of poor
scheduling – is
called a Capacity
Constraint
PACKAGING
Resource FLAKE MANUFACTURING
 The VSM shows the packaging area at 75% Utilization

 Silos often fill up, so flake or shape production goes down
 The culprit is poor scheduling, no synchronization
10
DIAGNOSING THE BOTTLENECK
One of the best tools for finding the bottlenecks in your process is a
VALUE STREAM MAP
11
VSM COMPONENTS
AGGREGATED
DEMAND
DEMAND
(MONTHLY)
SALES & MANAGEMENT CUSTOMER FORECASTS
Information Flow OPERATIONS

PLANNING
PROCESS (QUARTERLY)
CUSTOMER
CAPACITY FORECAST SERVICE
(MONTHLY) REPS ORDERS
MASTER PRODUCTION
RAW MATERIAL SCHEDULE (MONTHLY)
ORDERS (MONTHLY)
RAW MATERIAL PRODUCTION

ORDERS (MONTHLY) SUPERVISOR
ORDER
SUPPLIER 1 Frequency 1.8 Cars/Day CURRENT GRANTS CUSTOMERS,
Lot Size 140K lbs INVENTORIES DISTRIBUTORS
Order Lead
1 week Transp time 7 Days DAILY PRODUCTION
Time
SCHEDULE (WEEKLY) Quantity/time 230M Sq Ft/Mo
# SKUs 6
TAKT 320K Sq Ft/Hr
MATERIAL Lead time Exp 7 Days
SCHEDULE UPDATES (DAILY) SCHEDULE UPDATES (DAILY) RELEASES
Frequency 12 Trucks/Day
SHEET CALENDARING WRAPPING Lot Size 648K Sq Ft
SLITTING CHOPPING
FORMING BONDING PACKAGING
6
(3) 5
(3) 5
Transp time 3 Days
(4) (4) 6 LABELING 4
Invtry 6.3M lbs Effective Invtry 2500 R Effective Invtry 3650 R Invtry 4000 Invtry 322M sq Ft
Capacity 11.8 8.9 Effective Effective Effective
SUPPLIER 2 Capacity 10.3 29
Material Flow
Days 16 Days 12.6 Days 21 Capacity
Days 7 Capacity Capacity 200 Days 42
TAKT 9.5 TAKT 8.3
# # # TAKT 7.2 # TAKT 24 TAKT 120
Order Lead Frequency 1 Car/Day 6 (Master Rolls/Hr) 50 200 1000 # SKUs 2,000
1 Week SKUs SKUs (Master Rolls/Hr) SKUs (Bonded Rolls/Hr) SKUs (Slit Rolls/Hr)
Time (Cut Rolls/Hr)
Lot Size 140K lbs Utilization 80%
# SKUs 4 Utilization 93% Utilization 70% Utilization 83% Utilization 60%
Transp time 7 Days Lead time 15 Min Lead time 17 Min Lead time 10 Min Lead time 10 Min Lead time 8 Min
Yield 87% Yield 87% Yield 98% Yield 100% Yield 100%
Reliability 90% Reliability 98% Reliability 95% Reliability 98% Reliability 98%
UPtime 73.6% UPtime 61% UPtime 69% UPtime 98% UPtime 98%
# SKUs 50 # SKUs 200 # SKUs 1000 # SKUs 1800 # SKUs 2000
Batch size 1 roll Batch size 1 roll Batch size 1 roll Batch size 1 Slit Roll Batch size 1 Cut Roll
EPEI
C/O time
C/O loss
9 days
1 hr
2 Rolls
EPEI
C/O time
13 days
45 Min
EPEI
C/O time
7 days
5 Min
EPEI
C/O time
7 days
0
Data boxes
EPEI
C/O time
7 days
0
KEY
K = 1,000
M = 1,000,000
C/O loss ~0 C/O loss ~0 C/O loss 0 C/O loss 0 B = 1,000,000,000
Avail time 168 hr/wk Avail time 168 hr/wk Avail time 168 hr/wk Avail time 168 hr/wk Avail time 168 hr/wk
Shift schd 3x8x7 Shift schd 3x8x7 Shift schd 3x8x7 Shift schd 3x8x7 Shift schd 3x8x7
3 M 42 Days
16 Days 12.6 Days 21 Days 7 Days NVA Time = 99 Days
15 Min 17 Min 10 Min 10 Min 8 Min VA Time = 73 Min
Timeline

VALUE STREAM MAP DATA
Takt Time = Total available time / Customer demand
Takt Rate = Customer demand/ Available time
Example
 A salad dressing line has weekly demand of 45,000 cases for the flavors
made on that line
 Three eight-hour shifts per day, 5 days per week
 Production continues through lunch, breaks, shift changes
 Available time = 3 x 8 x 5 = 120 hours/week
 Takt = 45,000 cases /120 hours = 375 cases/hour
 So the plant must produce 375 cases per hour to satisfy customer
demand
Takt Rate = Customer demand/ Available time
 The concept of Takt is that you want to synchronize your

throughput to Takt
 You are meeting customer demand
 With no overproduction
 With minimal inventories

Effective Capacity
 It represents realistic expectations, not perfection
 It should represent what we can realistically do today
Effective Capacity = Max Demonstrated Rate (MDR) x OEE
 If the salad dressing line could pack 500 cases/hour on a perfect

day
 And OEE (or UPtime) is 85%
 Then Effective Capacity is 425 cases/hour

Utilization
 A measure of how fully occupied a process step is, how busy it is
Utilization = Takt rate/ Effective capacity
 If our salad dressing line has an effective capacity of 425 cases/hour

 Utilization = 375 cases per hour / 425 cases per hour
 Utilization = 88%
Utilization is a good indication of how close to a

bottleneck any process step is

FIBER CUTTER/BALER
Effective
Cycle TimeCapacity
(Capacity) 30 BALES/SHFT
Root causes of bottlenecks can TAKT 35 BALES/SHFT
be diagnosed from the data boxes Utilization 117%
Lead Time 9.6 MIN
 This is a B/N! Yield 97%
 Machine failures are the primary Reliability 70%
Uptime 60%
culprit
# SKUs 14
 Changeover times also Batch Size 1 BALE
contribute to the constraint (11% EPEI 4 DAYS
of capacity) C/O Time 45 MIN
C/O Losses 1%
 Both must be improved to Available Time 168 HRS/WK
resolve the B/N Shift Sched 8X3X7
No of Operators 1
17
RESIN REACTOR
Effective
Cycle TimeCapacity
(Capacity) 50 GAL/MIN
TAKT 55 GAL/MIN
Utilization 110%
 This is also a B/N! Lead Time 2 HR
 Yield and reliability are not Yield 97%
the problem Reliability 98%
Uptime 74%
 Changeover times are the # SKUs 12
issue here – 22% of the Batch Size 8000 GAL
available capacity is EPEI 36 HR
consumed in C/Os C/O Time 40 MIN
C/O Losses 1%
Available Time 168 HR/WK
Shift Sched 12 hr X 2 sh X 7 d
No of Operators 1
18
ROOT CAUSES OF BOTTLENECKS
Once a bottleneck has been identified, it is important to

understand why it is a bottleneck.
The most common causes in process plants:
 Inherent equipment capacity limitations
 Mechanical or electrical reliability problems
 Yield losses
 Long changeovers
 Inappropriate scheduling or lack of synchronization (CCRs)
19
TYPICAL BOTTLENECK ROOT CAUSES
Disclaimer: this is not based on any

scientific, statistically valid study!
 Based on a small sampling of VSMs from process plants

 Data boxes of bottleneck or near-bottleneck resources were studied for
most significant root cause
 When more than one reason contributed, partial weight was given to each
20
MANAGING
THE
BOTTLENECK
21
MANAGING THE BOTTLENECK
Once the bottleneck has been identified and its root cause(s)
determined, it’s time to open it up, to increase flow.
If that can’t be done, at least make sure the bottleneck is not

further constrained by limitations elsewhere in the process
Theory of Constraints is the best way to do this
22
CONSTRAINT MANAGEMENT PROCESS
23
IDENTIFY THE
BOTTLENECK
FIND THE NEXT

EXPLOIT THE
BOTTLENECK AND
BOTTLENECK
REPEAT
ELEVATE THE SUBORDINATE

BOTTLENECK EVERYTHING TO
CAPACITY THE BOTTLENECK
Theory of Constraints
Eliyahu M. Goldratt, 1990 24
 Look for inventory

IDENTIFY THE
 Study the VSM
BOTTLENECK
 Mathematical analysis (Excel, FlexSim)
 Make sure the B/N is running at max rates

EXPLOIT THE
 Reduce changeover times - SMED
BOTTLENECK
 If CCR, improve flow synchronization
SUBORDINATE
 Don’t let the B/N be constrained by
EVERYTHING TO
upstream or downstream limitations
THE BOTTLENECK
Theory of Constraints Eliyahu M. Goldratt, 1990

25
PROCESS SYSTEM INTERACTIONS
STEP STEP STEP
A B C
CAPACITY 48 GPM CAPACITY 100 GPM

CAPACITY 100 GPM
TAKT 50 GPM TAKT 50 GPM
TAKT 50 GPM
UTILIZATION 50% UTILIZATION 104% UTILIZATION 50%
OEE 90% OEE 90% OEE 90%
Where is the bottleneck?

What is the flow through the bottleneck?
48 GPM?
Wrong! The average flow is 39 GPM. (48 GPM x 90% x 90%)
The bottleneck resource suffers whenever there is an upstream or
downstream interruption
26
B/N MANAGEMENT ~ THEORY OF CONSTRAINTS
STEP STEP STEP
A B C
BUFFER 48 GPM
EMPTY 100 GPM
CAPACITY CAPACITY
CAPACITY 100 GPM
TAKT 50 GPM INVENTORY TAKT 50 GPM BUFFER TAKT 50 GPM

OEE 90% OEE 90% OEE 90%
 Buffer inventories can alleviate the interaction

 They can de-couple the various interruptions
 They won’t eliminate the bottleneck
 But they will prevent the bottleneck flow from being further
constrained
27
B/N MANAGEMENT ~ THEORY OF CONSTRAINTS
This should be kept full to feed Step B when Step A is down

If max downtime duration on Step A is 2 hours….
Buffer should be ~ 5800 gallons
(2 hr x 60 min x 48 GPM)
STEP STEP STEP
A B C
BUFFER 48 GPM
EMPTY 100 GPM
CAPACITY CAPACITY
CAPACITY 100 GPM
TAKT 50 GPM INVENTORY TAKT 50 GPM BUFFER TAKT 50 GPM

OEE 90% OEE 90% OEE 90%
This should be kept empty so that How large

there is a place to put material should this
from Step B while Step C is down buffer be?
28
 Increase the effective B/N capacity

ELEVATE THE  Reduce Yield losses
BOTTLENECK  Improve reliability – implement TPM
CAPACITY
 Increase ideal capacity – modify the
equipment
FIND THE NEXT  Once this B/N is no longer the B/N

BOTTLENECK AND  Find the new B/N
REPEAT  There is usually a B/N!
Theory of Constraints Eliyahu M. Goldratt, 1990

29
MOVING
BOTTLENECKS
30
BOTTLENECKS CAN MOVE WITH PRODUCT MIX
SHEET
BONDING
FORMING
1
1
6
1.5 1.5
Eff Cap 2.95 Eff Cap 2.22

TAKT 2.4 Invtry 625 Rolls TAKT 2.1
Utilization 81% Days 12.6 Utilization 94%
(Rolls/hr) # SKUs 8 (Rolls/hr)
AVERAGE OF ALL PRODUCTS
The bottleneck may move as the process cycles through the various
products being made.
 In his case, both forming and bonding have enough capacity to meet
customer demand
31
PRODUCT-SPECIFIC BOTTLENECK
SHEET
BONDING
FORMING
1
1
6
1.5 1.5
Eff Cap 2.35 Invtry 625 Rolls Eff Cap 2.22

TAKT 2.4 Days 12.6 TAKT 2.1
Utilization 102% # SKUs 8 Utilization 94%
(Rolls/hr) (Rolls/hr)
PRODUCT 432A
When forming products with very high basis weight, forming must run
at slower lineal speeds - mass flow is the limiting factor
 Thus forming becomes the bottleneck when making these products
32
SHEET
BONDING
FORMING
1
1
6
1.5 1.5

Invtry 625 Rolls
(Rolls/hr)
(Rolls/hr)
PRODUCT 4516F
For products that must be bonded at higher temperature, the bonder

must run slower to allow more time in contact with the heated roll
 So for these products, bonding becomes the bottleneck
33
Other examples:
 Synthetic fiber production

 Fiber winding is the B/N for very fine fibers
 The metering pump is the B/N for thicker fibers
 Salad dressing and ketchup bottling lines

 For larger bottles, the bottle filler will be the B/N
 For smaller bottles, the label applicator may be the B/N
 For very small cartons for convenience stores, the carton
erector/filler may become the B/N
34
WHY DOES THIS MATTER?
SHEET
BONDING
FORMING
1
1
6
1.5 1.5

(Rolls/hr) (Rolls/hr)
PRODUCT 432A
SHEET
BONDING
FORMING
1
1
6
1.5 1.5

Invtry625 Rolls
(Rolls/hr)
(Rolls/hr)
PRODUCT 4516F
Doesn’t it all average out over time?

 Yes, but so does commuter traffic
and you see what can happen during rush hour!
35
WHY DOES THIS MATTER?
SHEET
BONDING
FORMING
1
1
6
1.5 1.5

(Rolls/hr) SHEET (Rolls/hr) BONDING
FORMING
PRODUCT 432A 1
6
1
1.5 1.5

Invtry 625 Rolls
(Rolls/hr)
(Rolls/hr)
PRODUCT 4516F
The process runs at the rate of the slowest asset

 So you can’t catch up – things don’t average out!
 Buffering ala Theory of Constraints will minimize the consequences
of moving bottlenecks
 You must understand all of the steps that can be B/Ns –
to make sure all buffers are in place
36
SUCCESSIVE BOTTLENECKS
Once the bottleneck has been opened, and is no longer a

bottleneck, don’t assume that the process can now make
Takt.
 There may be other steps which are bottlenecks – this may have
been masked by the most obvious bottleneck
 An accurate VSM would have brought this to light
 However….. The primary bottleneck can restrict flow in a way that
masks restrictions at other steps
 Or…… managers may be making assumptions about bottleneck
locations without benefit of a VSM
37
EXAMPLE – SALAD DRESSING
 The plant manager of a salad dressing production and bottling

facility wanted to increase throughput on a sold-out line from 300 BPM
to 400 BPM
 He and the plant engineer believed (correctly) that the bottleneck
was in the bottle filling step – based on experience and intuition
 The technical staff developed a new filling nozzle, which could fill at
the higher flow rate with no increase in pressure.
 However, before fabricating a complete set of new nozzles, they
developed a VSM
38
BN #2 BN #1 BN #3 BN #4
BOTTLE
BOTTLE BOTTLE CASE
HOMOGENIZER FILLING
CAPPER LABELER PACKER
MACHINE
SURGE 300 Bot/Min 500 BPM ACCUMULATING 360 BPM
EFF CAPACITY 60 GPM EFF CAPACITY EFF CAPACITY EFF CAPACITY EFF CAPACITY 33 cases.min
TANK 400 BPM 400 BPM BOTTLE 400 BPM
TAKT 75 GPM TAKT TAKT TAKT TAKT 34 cases/min
CONVEYOR
UTILIZATION 125% UTILIZATION 133% UTILIZATION 80% UTILIZATION 111% UTILIZATION 101%
OEE 90% OEE 85% OEE 94% OEE 82%
OEE 73%
Salad Dressing NOTE: All capacities and Takt are relative to 24 oz bottles,
Bottle Filling Line which is the primary size run on his line
WAREHOUSE
PALLET PALLET
SHRINK CASE
STRETCH LABEL
WRAP PATTETIZER
WRAPPER PRINTER
TUNNEL
APPLICATOR
EFF CAPACITY 122 cases/min EFF CAPACITY 100 cases/min EFF CAPACITY 224 pallet/hr EFF CAPACITY 170 pallet/hr
TAKT 34 cases/min TAKT 34 cases/min TAKT 26 pallet/hr TAKT 26 pallet/hr
UTILIZATION 28% UTILIZATION 34% 12%
UTILIZATION UTILIZATION 15%
OEE 90% OEE 94%
OEE 92% OEE 76%
Current State VSM, with the higher Takt requirement

39
 The plant manager of a salad dressing production and bottling

facility wanted to increase throughput on a sold-out line from 300 BPM
to 400 BPM
 He and the plant engineer believed (correctly) that the bottleneck
was in the bottle filling step – based on experience and intuition
 The technical staff developed a new filling nozzle, which could fill at
the higher flow rate with no increase in pressure.
 However, before fabricating a complete set of new nozzles, they
developed a VSM
 This revealed three other steps which would become bottlenecks as
throughput approached 400 BPM
 The new nozzles would increase the bottle filler to 400 BPM, but line
speed would only increase to 320BPM!
40
 The cost of fitting the bottle filler with new nozzles was easily
justifiable
 However, the cost of eliminating all 4 potential bottlenecks
was not
 The decision was made to build a new line to handle the
increased demand
 This also provided additional capacity for future demand
growth
 They ultimately would have gone that way
 The VSM and bottleneck analysis got them to the right
decision much sooner
 And avoided the cost of a set of stainless steel nozzles.
41
Do you have any bottlenecks in your plant?
Is it clearly understood where they are?
How do you manage them?

MORE EXAMPLES OF
BOTTLENECKS
IN PROCESS PLANTS
1) Film slitters in a plastic film plant

2) Curing ovens in a electronics circuit board factory
X-RAY FILM MANUFACTURING EQUIPMENT CONFIGURATION
X-ray Casting X-ray Casting X-ray Casting

Machine 1 Machine 2 Machine 3
Coater 1 Coater 2 Coater 3 Coater 4
Roll Slitting Roll Slitting Roll Slitting

MATERIAL FLOW
Machine 1 Machine 2 Machine 3
Chopper Chopper Chopper Chopper Chopper

1 2 3 4 5
Pouching, Boxing, Palletizing

1 – FILM SLITTING
Roll Slitting Roll Slitting Roll Slitting

Is there a Machine 1 Machine 2 Machine 3
bottleneck?
 Theoretically each step should have more than enough capacity to

handle the throughput
 Especially the slitters - Utilization is ~ 70%
 But flow can’t match demand
 The Value Stream Map showed the Slitter OEE to be 60%
 Root causes
 Slitters had low maintenance priority
 TPM wasn’t being practiced
 PMs weren’t being done

1 – FILM SLITTING
Solution
 Give slitters an equal priority for maintenance
 Implement TPM
Result
 Slitter Utilization > 85%
 Slitters no longer a bottleneck
 Flow matches demand

2 – CURING OVENS – ELECTRONIC SUBSTRATES
 Ovens (2) have a 12 hour curing cycle

 Ovens are very much the bottleneck
 Oven utilization ~ 100%
SUBSTRATE
PREPARATION  Next is the Laminator, at 75%
COPPER LAMINATING CURING

EDGE TRIM PACKAGING
PREPARATION & CUTTING OVENS
UPPER
LAYER
PREPARATION
 OEE on the Laminator and Edge Trimmer is good, = 90%

 But that means they are down 10% of the time each

2 – CURING OVENS – ELECTRONIC SUBSTRATES
Solution – put buffers in front of

and after the Bottleneck
SUBSTRATE
PREPARATION
COPPER LAMINATING CURING

EDGE TRIM PACKAGING
PREPARATION & CUTTING
B OVENS
B
UPPER
LAYER
PREPARATION
 That won’t relieve the bottleneck
– it’s still the bottleneck
 But at least it won’t suffer from Laminator or
Trimmer downtime

Summary
 Bottlenecks matter!
 They constrain material flow
 They prevent you from meeting customer demand
 They require inventory
 Bottlenecks in process plants are usually the equipment, not staffing
 Adding people won’t help, nor will overtime, extra shifts
 So you must confront the root causes
 Opening the bottleneck requires performance improvement
 Yield improvement
 Reliability improvement (TPM)
 Changeover reduction (SMED)
 Whenever there are bottlenecks, Theory of Constraints should be applied

TO LEARN MORE …..
The material in this

presentation is featured in
Productivity Press
May 2009

Questions?
peterking@LeanDynamics.us
(302) 239-1667
(302) 528-2700

Do you have any bottlenecks in your plant?
Is it clearly understood where they are?
How do you manage them?

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RECOGNIZING AND MANAGING

© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED 2

 Any resource where capacity is less than or equal to Takt (rate)

 The process step with the lowest capacity

© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED 3

 A primary objective of Lean is to achieve smooth continuous flow

 In parts manufacture and assembly processes –

© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED 6

 Examples of process bottlenecks

© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED 7

 Throughput can be limited by equipment design, by the inherent

© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED

Any resource that

 The VSM shows the packaging area at 75% Utilization

VALUE STREAM MAP

Information Flow OPERATIONS

RAW MATERIAL PRODUCTION

MATERIAL Lead time Exp 7 Days

SCHEDULE UPDATES (DAILY) SCHEDULE UPDATES (DAILY) RELEASES

© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED 12

Takt Time = Total available time / Customer demand

Takt Rate = Customer demand/ Available time

Takt Rate = Customer demand/ Available time

 The concept of Takt is that you want to synchronize your

© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED 14

Effective Capacity = Max Demonstrated Rate (MDR) x OEE

 If the salad dressing line could pack 500 cases/hour on a perfect

© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED 15

Utilization = Takt rate/ Effective capacity

 If our salad dressing line has an effective capacity of 425 cases/hour

Utilization is a good indication of how close to a

© 2010 - LEAN DYNAMICS LLC - ALLRIGHTS RESERVED 16

Once a bottleneck has been identified, it is important to

Disclaimer: this is not based on any

 Based on a small sampling of VSMs from process plants

If that can’t be done, at least make sure the bottleneck is not

Theory of Constraints is the best way to do this

FIND THE NEXT

ELEVATE THE SUBORDINATE

 Look for inventory

 Make sure the B/N is running at max rates

Theory of Constraints Eliyahu M. Goldratt, 1990

STEP STEP STEP

CAPACITY 48 GPM CAPACITY 100 GPM

Where is the bottleneck?

STEP STEP STEP

UTILIZATION 50% UTILIZATION 104% UTILIZATION 50%

 Buffer inventories can alleviate the interaction

This should be kept full to feed Step B when Step A is down

STEP STEP STEP

UTILIZATION 50% UTILIZATION 104% UTILIZATION 50%

This should be kept empty so that How large

 Increase the effective B/N capacity

FIND THE NEXT  Once this B/N is no longer the B/N

Theory of Constraints Eliyahu M. Goldratt, 1990

Eff Cap 2.95 Eff Cap 2.22

AVERAGE OF ALL PRODUCTS

Eff Cap 2.35 Invtry 625 Rolls Eff Cap 2.22

Eff Cap 2.95 Eff Cap 1.9

For products that must be bonded at higher temperature, the bonder

 Synthetic fiber production

 Salad dressing and ketchup bottling lines

Eff Cap 2.35 Invtry 625 Rolls Eff Cap 2.22