Premium Essay

What Are the Differences in How Bottleneck and Non-Bottleneck Work Centers Are Scheduled?

In: Business and Management

Submitted By mclovin101
Words 308
Pages 2
What are the differences in how bottleneck and non-bottleneck work centers are scheduled under TOC? Why are these differences desirable? The theory of constraints scheduling involves the preparation of an exact schedule of jobs for bottleneck work centers, and sequencing the non-bottleneck work centers by a priority-sequencing rule. Any resource whose capacity is equal to or less than the required demand is referred to as a bottleneck. As a consequence the basic principle of TOC systems is that only those work centers that are bottlenecks are of critical concern in scheduling.
This is because the bottleneck work centers limit all of the production output of a plant. Further output past the constraint of the bottleneck can be attainable only by improved utilization of the bottleneck facilities, using approaches such as reduced downtime, improved productivity, and reduced changeover times. The objective of TOC scheduling is to maximize throughput. Because the bottleneck resources limit throughput all the efforts are focused on maximizing capacity utilization in these work centers. Therefore, TOC scheduling systems focus on the identification of bottleneck work centers, and the scheduling of these work centers.

2. Why should buffers be located in front of bottleneck work centers under TOC scheduling? How should the size of the buffers be determined? The buffers are located in front of bottleneck work stations because they are a safety net of product stored just in case the bottleneck station cannot get the product out in time. It helps relieve the overall stress of the process and ensures the orders go out on time. The size of the buffer should be determined by the size of the drum or the orders you are trying to fulfill. If you have a bigger order then you are going to need a bigger buffer than if you only have small orders to

Similar Documents

Free Essay

J1Wbsjdxb

...IMPROVEMENT INITIATIVES PPC Capacity Planning, Aggregate Planning, Master Schedule, and ShortTerm Scheduling Capacity Planning 1. Facility Size 2. Equipment Procurement Long-term Aggregate Planning 1. Facility Utilization 2. Personnel needs 3. Subcontracting Master Schedule 1. MRP 2. Disaggregation of master plan Short-term Scheduling 1. Work center loading 2. Job sequencing Intermediate-term Intermediate-term Short-term 2 HOGWARTS SCHOOL OF IMPROVEMENT INITIATIVES PPC PRODUCTION PLANNING HIERARCHY Long-Range Capacity Planning Aggregate Planning Master Production Scheduling Production Planning and Control Systems Pond Draining Systems Push Systems Pull Systems Focusing on Bottlenecks 3 HOGWARTS SCHOOL OF IMPROVEMENT INITIATIVES PPC PRODUCTION PLANNING HORIZONS Long-Range Capacity Planning Long-Range (years) Aggregate Planning Medium-Range (6-18 months) Master Production Scheduling Short-Range (weeks) Very-Short-Range (hours - days) Production Planning and Control Systems Pond Draining Systems Push Systems Pull Systems Focusing on Bottlenecks 4 HOGWARTS SCHOOL OF IMPROVEMENT INITIATIVES PPC Production Planning: Units of Measure Long-Range Capacity Planning Entire Product Line Aggregate Planning Product Family Master Production Scheduling Specific Product Model Labor, Materials, Machines Production Planning and Control Systems Pond Draining Systems Push Systems ...

Words: 4529 - Pages: 19

Premium Essay

Critical Chain

...to it (in the space marked "Controller"). A glance at the license as I walk around it assures me it has to be Bill's car because the plate says "NUMBER 1." And, as we all know, that's absolutely correct in terms of who Bill always looks out for. He wants his shot at CEO. But so do I. Too bad that I may never get the chance now. Anyway, I'm walking up to the office doors. Already the adrenalin is pumping. I'm wondering what the hell Bill is doing here. I've lost any hope of getting any work done this morning. I usually go in early to catch up on all the stuff I'm too busy to do during the day, because I can really get a lot done before the phone rings and the meetings start, before the fires break out. But not today. "Mr. Rogo!" I hear someone calling. I stop as four people come bursting out of a door on the side of the plant. I see Dempsey, the shift supervisor; Martinez, the union steward; some hourly guy; and a machining center foreman named Ray. And they're all talking at the same time. Dempsey is telling me we've got a problem. Martinez is shouting about how there is going to be a walkout. The hourly guy is saying something about harassment. Ray is yelling that we can't finish some damn thing because we don't have all the parts. Suddenly I'm in the middle of all this. I'm...

Words: 120884 - Pages: 484

Free Essay

The Goal

...Captured by Plamen T. THE GOAL A Process of Ongoing Improvement THIRD REVISED EDITION By Eliyahu M. Goldratt and Jeff Cox With interviews by David Whitford, Editor at Large, Fortune Small Business North River Press Captured by Plamen T. Additional copies can be obtained from your local bookstore or the publisher: The North River Press Publishing Corporation P.O. Box 567 Great Barrington, MA 01230 (800) 486-2665 or (413) 528-0034 www.northriverpress.com First Edition Copyright © 1984 Eliyahu M. Goldratt Revised Edition Copyright © 1986 Eliyahu M. Goldratt Second revised Edition © 1992 Eliyahu M. Goldratt Third Revised Edition © 2004 Eliyahu M. Goldratt All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage retrieval system, without permission in writing from the publisher Manufactured in the United States of America Library of Congress Cataloging-in-Publication Data Goldratt, Eliyahu M., 1948The goal: a process of ongoing improvement I. Coxjeff, 1951-. II. Title PR9510.9.G64G61986 823 ISBN: 0-88427-178-1 86-12566 Captured by Plamen T. 1 INTRODUCTION The Goal is about science and education. I believe that these two words have been abused to the extent that their original meanings have been lost in a fog of too much respect and mystery. Science for me, and for the vast majority of respectable scientists, is not about...

Words: 144560 - Pages: 579

Premium Essay

The Asdaad

...Captured by Plamen T. THE GOAL A Process of Ongoing Improvement THIRD REVISED EDITION By Eliyahu M. Goldratt and Jeff Cox With interviews by David Whitford, Editor at Large, Fortune Small Business North River Press Captured by Plamen T. Additional copies can be obtained from your local bookstore or the publisher: The North River Press Publishing Corporation P.O. Box 567 Great Barrington, MA 01230 (800) 486-2665 or (413) 528-0034 www.northriverpress.com First Edition Copyright © 1984 Eliyahu M. Goldratt Revised Edition Copyright © 1986 Eliyahu M. Goldratt Second revised Edition © 1992 Eliyahu M. Goldratt Third Revised Edition © 2004 Eliyahu M. Goldratt All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage retrieval system, without permission in writing from the publisher Manufactured in the United States of America Library of Congress Cataloging-in-Publication Data Goldratt, Eliyahu M., 1948The goal: a process of ongoing improvement I. Coxjeff, 1951-. II. Title PR9510.9.G64G61986 823 ISBN: 0-88427-178-1 86-12566 Captured by Plamen T. 1 INTRODUCTION The Goal is about science and education. I believe that these two words have been abused to the extent that their original meanings have been lost in a fog of too much respect and mystery. Science for me, and for the vast majority of respectable...

Words: 144560 - Pages: 579

Premium Essay

Theory of Constraints

...Chapter 5 Theory of Constraints What You Will Find Out About in This Chapter  The importance of managing system throughput  The differences between cost-world orientation and throughput orientation  The importance, and often the difficulty, of identifying constraints  The five-step process of constraint management  The circumstances in which the theory of constraints is valuable in increasing throughput  How throughput accounting and appropriate performance measures can encourage a throughput emphasis Management Accounting for Change: Process Improvement and Innovation 5.1 INTRODUCTION...........................................................................................................................................85 5.2 MANAGING PROCESS THROUGHPUT ....................................................................................................85 5.2.1 Defining TOC...........................................................................................................................................86 5.3 NATURE OF THE ‘GLOBAL GOAL’ VS LOCAL PERFORMANCE MEASUREMENT ........................87 5.3.1 The Global Goal .......................................................................................................................................87 5.3.2 Local Performance Measurement .............................................................................................................87 5.3.3 Conflicts Between Local Performance and the Global...

Words: 9715 - Pages: 39

Premium Essay

Iloveyouni

...Detailed Scheduling and Planning Terminology Action message | An output of a system that identifies the need for, and the type of action to be taken to correct, a current or potential problem. Examples of action message in an MRP system include release order, reschedule in, reschedule out, and cancel. Syn: exception message, action report. | Activation | Putting a resource to work | Aggregate planning | A process to develop tactical plans to support the organization’s business plan. Aggregate planning usually includes the development, analysis, and maintenance of plans for total sales, total production, targeted inventory, and targeted customer backlog for families of products. The production plan is the result of the aggregate planning process. Two approaches to aggregate planning exist:1) production planning and 2) sales and operations planning, sales plan. | Advanced planning and scheduling (APS) | Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate, and long-term time periods. APS describes any computer program that uses advanced mathematical algorithms or logic to perform optimization or simulation on finite capacity scheduling, sourcing, capital planning, resource planning, forecasting, demand management, and others. These techniques simultaneously consider a range of constraints and business rules to provide real-time planning and scheduling, decision support, available-to-promise, and capable-to-promise capabilities...

Words: 4256 - Pages: 18

Premium Essay

Project Management Summary

...Session 1 Krajewski Chapter 1: Using Operations to Compete • • • Operations Management ! systematic design, direction & control of processes that transform inputs into outputs Process ! activity(s) that transforms inputs into outputs Operation ! group of resources performing one or more processes Functional Areas of business (acquires!fin.!Resources&capital! for!input)! Finance* Material!&! Service! Inputs! Operations* (material!&!service!into! outputs)! !!!!!!!!!!!!!!Support!Functions! ! • Accounting! • Information!System! • HR! • Engineering! Product!&! Service! Output! Marketing* Sales! Revenue! (Generates!sales!of!output)! • • Process and Operations are influences by internal and external customers considering feedback Two types of Process ! Manufacturing and Service Manufacturing Physical output Can be inventoried Low customer contact Long response time Capital intense Quality easily measured Service Intangible output Cannot High Short Labor intense Not easily measured Core Process (within the Supply Chain) ! Set of activities delivering value to external customers 1. Supplier Relationship Process ! selects suppliers & facilitates flow of items into firm 2. New Service/Product Development Process ! designs & develops new S/P received from inputs received from ext customer specifications or from mkt in general (through Customer Rltnshp Process) ! 1! 3. Order Fulfillment Process ! activities required to produce and deliver S/P to external...

Words: 12516 - Pages: 51

Free Essay

Sequence the Work and Execute

...Sequence the Work and Execute the Plans Self-Assessment Introduction Course Overview Welcome to the CPIM Execution and Control of Operations — Sequence the Work and Execute the Plans self-assessment course. This introduction provides an overview of the CPIM program, this course, and further preparation for the certification examinations. The CPIM certification is the recognized standard for individual assessment in the field of production and inventory management. The certification is designed to validate the candidate’s in-depth knowledge of a variety of subjects specific to the field. APICS has ensured that CPIM exams are consistently reliable and that the highest professional standards are used in developing and administering the program. The program consists of five examinations and the candidate must pass all five examinations to earn the CPIM designation. The examinations that make up the program are: • Basics of Supply Chain Management (BSCM)   • Master Planning of Resources (MPR)   • Detailed Scheduling and Planning (DSP)   • Execution and Control of Operations (ECO)   • Strategic Management of Resources (SMR) A CPIM Exam Content Manual is published annually by APICS. It is a key resource for anyone preparing for the APICS certification examinations. The manual addresses all five of the examinations by documenting the scope of the module, the content outline, the key terms, and primary and secondary references...

Words: 4514 - Pages: 19

Premium Essay

Activity-Based Costing System

...www.ccsenet.org/ijbm International Journal of Business and Management Vol. 6, No. 11; November 2011 Activity-Based Costing System in the Service Sector: A Strategic Approach for Enhancing Managerial Decision Making and Competitiveness Ashford C. Chea School of Business, Kentucky Wesleyan College 4721 Covert Avenue, Evansville, IN 47714, USA Tel: 1-812-471-9341 E-mail: achea@ix.netcom.com Received: June 21, 2011 doi:10.5539/ijbm.v6n11p3 Accepted: July 4, 2011 Published: November 1, 2011 URL: http://dx.doi.org/10.5539/ijbm.v6n11p3 Abstract The author begins the article by outlining a brief historical evolution of activity-based costing (ABC) in the USA preceded by an operating definition of terminologies. Next, he presents the literature review and the methodology employed during the study. He reviews the application of ABC in the service sector, followed by an analysis of the unique attribute of the service sector. Moreover, the researcher briefly profiles several service-oriented firms that have successfully adopted and implemented ABC, and presents his findings from the study. He then addresses the limitations of ABC in the service sectors and offers strategies for dealing with these drawbacks. Finally, the researcher outlines the managerial implications of implementing ABC in the service sector. Keywords: Activity-based costing, Service sector, Managerial decision making, Cost measurement 1. Introduction The concept of activity-based costing (ABC) was introduced...

Words: 7039 - Pages: 29

Premium Essay

Chapter Five Case

...activity analysis, cost driver analysis, activity-based costing, continuous improvement, operational control, performance evaluation, and business process reengineering. 2. Value-added activities are viewed from the customer's perspective because it is the customer who is the end evaluator of the “worth” of a product or service and, therefore, the activities involved in creating that product or service. 3. In a televised football game, the value-added activities are the actual game plays. Non-value-added activities consist of commercials and the time between plays. Activities such as “moving the chains,” measuring to determine if a first down was made, moving the ball from the end of one play to the point where it will be put in play next are all non-value-added activities. People who believe that the commercials are informative and interesting and that the time between plays allows them an opportunity to examine the strategies of the teams and project what each team is likely to do play may disagree with this assessment. 4. Yes, cost drivers exist in traditional accounting systems although they are called "bases for allocation." In traditional systems, a single cost driver such as direct labor hours or machine hours is commonly used rather than multiple cost drivers. Also in traditional systems, volume-based cost drivers are more the norm...

Words: 8284 - Pages: 34

Premium Essay

Paediatric Orthopaedic Clinic

...Case report: Paediatric Orthopaedic Clinic 1- What is capacity utilization at every step in the process? What is the direct resource utilization? Using the data provided in the case, we are able to compile all data necessary to compute the capacity utilization at the clinic. Activity | # of Staff | Available time | Activity time | Number of Patients | Time needed | Utilization10 | | | /Staff | Total | N | F | N | F | N | F | Total | | 1. Front Desk | | | | | | | | | | | |     a. Registration | 3 | 180 | 540 | 5 | 5 | 32 | 48 | 160 | 240 | 400 |     74 % |     b. Verification | 3 | 255 | 765 | 9 | 4 | 32 | 48 | 288 | 192 | 480 |     63 % | 2. Radiology Department | | | | | | | | | | | |     a. X-ray imaging | 6 | 240 | 9603 | 11 | 11 | 32 | 40.8 | 352 | 448.8 | 800.8 |     83 % |     b. Development of X-rat | -1 | 240 | 9604 | 7 | 7 | 32 | 40.8 | 224 | 285.6 | 509.6 |     53%8 |     c. Diagnostic reading and comments | 3 | 240 | 4805 | 5 | 5 | 32 | 40.8 | 160 | 204 | 364 |     76% | 3. Hand-off X-ray to Clinic | | | | | | | | | | | |     a. Collection of X-ray | 3 | 2556 | 7657 | 2 | 2 | 32 | 40.8 | 64 | 81.6 | 145.6 |     19% 9 |     b. Filing/exam room prep | 1 | 255 | 255 | 2 | 2 | 32 | 48 | 64 | 96 | 160 |     63% | 4. Examination Room | | | | | | | | | | | |     a. Surgeon | 1 | 255 | 255 | 7 | 4 | 32 | 14.4 | 224 | 57.6 | 281.6 |     110% |     b. Resident | 1(2)2 | 255 | 255 | - | 7 | - | 33.6 | - | 235.2 | 235.2 |     92% |     c. Cast technician...

Words: 9158 - Pages: 37

Premium Essay

Coors

...The Coors Case Balanced Scorecard By the end of 1997, Coors had finished the implementation of a three-year computer-integrated logistics (CIL) project to improve its supply chain management. Coors defined its supply chain as every activity involved in moving production from the supplier’s supplier to the customer’s customer. (Since by federal law, Coors cannot sell directly to customers. Coors customers are its distributors whose customers are retailers whose customers are consumers). Coor’s supply chain included the following processes: purchasing, research and development, engineering, brewing, conditioning, fermenting, packaging, warehouse, logistics and transportation. The CIL project was a cross-functional initiative to reengineer the business processes by which Coor’s logistics or supply chain was managed. The reengineering project improved supply chain processes and applied information technology to provide timely and accurate information to those involved in supply chain management. The project objective was to increase company profitability by reducing cycle times and operating costs and increasing customer (distributor) satisfaction. The software vendor used for this project was the German Company Systems Application & Products (SAP), which provided the financial and materials planning software modules. The SAP planning software became Coors’s load configurator software, which takes distributor demand forecasts and the production schedule and...

Words: 3971 - Pages: 16

Free Essay

Iecj Coors Cs

...ISSN 1940-204X COORS BALANCED SCORECARD: A DECADE OF EXPERIENCE Hugh Grove University of Denver Tom Cook University of Denver Ken Richter Coors Brewing Company IntroductIon By the end of 1997, Coors had finished the implementation of a three-year Computer Integrated Logistics (CIL) project to improve its supply chain management. Coors defined its supply chain as every activity involved in moving production from the supplier’s supplier to the customer’s customer. (Since by Federal law, Coors cannot sell directly to consumers, Coors customers are its distributors whose customers are retailers whose customers are consumers.) Coors supply chain included the following processes: purchasing, research and development, engineering, brewing, conditioning, fermenting, packaging, warehouse, logistics, and transportation. This CIL project was a cross-functional initiative to reengineer the business processes by which Coors logistics or supply chain was managed. This reengineering project improved supply chain processes and applied information technology to provide timely and accurate information to those involved in supply chain management. The project objective was to increase company profitability by reducing cycle times and operating costs and increasing customer (distributor) satisfaction. The software vendor used for this project was the German company, Systems Applications & Products (SAP), 1 that provided the financial and materials planning software modules. The SAP planning...

Words: 4948 - Pages: 20

Premium Essay

Business

...For comments: ehabmes@yahoo.com Chapter 2: Competitiveness, Strategy, and Productivity Definitions: Competitiveness: How effectively the organization meets the needs of the customers relative to others that offer similar goods or services. Strategy: Plans to achieve organization goals. Productivity: Measure of effective use of resources, usually expressed as the ratio of outputs to inputs. Productivity =Output / Input Competitiveness: Organizations compete with each other in various ways including: 1. Price: amount customer must pay for the product or service. If all other factors are equal customers will choose lowest price. 2. Quality: Material, workmanship and design. Quality is related to buyer’s perception. 3. Service: like after-sale such as delivery, setup, warranty, technical support etc. 4. Differentiation: any special feature (design, cost, quality, ease of use, etc) that cause a product or service to be perceived by the buyer as more suitable than competitor’s. 5. Flexibility: the ability to respond to changes. 6. Time: like, how quickly product is delivered, how quickly product is developed, and rate of product improvement. 7. Managers and workers: people are the heart and soul of an organization. Their skills can be a competitive edge. Skills example is answering the phone: persons handling calls should be helpful, cheerful, prompt. Global 1. 2. 3. 4. 5. 6. competition criteria: Changing in nature. Quality, service and prices competition. Continued growth...

Words: 13118 - Pages: 53

Premium Essay

Hbr Project Managemet

...other large initiatives running months behind schedule, stuck in seemingly permanent logjams? Are you particularly frustrated by projects whose myriad tasks were executed flawlessly—but still don’t deliver the expected results? Worse, do you suspect that projects consuming the most resources have the least connection to your company’s strategy? Such chaos describes many companies— but that’s little comfort. The key is to understand the myopia causing these disasters. Most companies deal with projects individually—pushing each through the pipeline as quickly and cost-effectively as possible. But this approach doesn’t help you make vital big-picture decisions: “What mix of projects would be best for our organization?”“How do we allocate scarce resources to the most strategically important projects?”“How can we roll out large initiatives more confidently?” The Articles 3 Article Summary 4 Creating Project Plans to Focus Product Development by Steven C. Wheelwright and Kim B. Clark Begin ascending to 30,000 feet by creating an aggregate project plan—an analysis of...

Words: 21989 - Pages: 88