the goal key takeaways

THE GOAL KEY TAKEAWAYS

• Bottleneck constrain capacity

o  They are the result of material shortages, machine’s standing idle,

poor workow, inecient use of labor, worker training problemso Problems: Orders being lled late

Key Takeaways:

1. The goal of any manufacturing operation is to earn a prot 

2. One measure of protability is Throughput a! Throughput the amount of product mo"ed through the plant

3. Second measurement of protability: Inventory a! #$cess %n"entory costs:

i! &oney paid to purchase in"entory which then sits idleii! %t takes space to store in"entory, there is an opportunity cost

associated with thisiii! #mployee tracking and handling

 . Third measure of protability: Operational !"pensea! 'ost of materialsb! &achine repair costsc! #nergy costsd! (abour costse! )e"en *astes that a factory should eliminate:

i! O"erproductionii! *ait timeiii! +nnecessary transportation of materialsi"! +se of complicated high cost euipment"! #$cess in"entory

"i! +nnecessary physical motions"ii! Too many defecti"e products

#. $a%or impediment to factory is bottlenec& or constraint a! 'auses of bottlenecks

i! (ess than adeuate materials reaching the process -arri"al time.ii! #mployee delay setting up euipmentiii! #uipment breaking

'. (irst step in overcoming bottlenec&: (ind out )hat the bottlenec&

consists of a! *here 'apacity /0 1emand

*. Second step: deciding ho) to " it a! 2ddressing se"eral issues

i! Prioriti3ing orders so workers would handle the most pressing

ones rst

ii! 4e5arranging the workers lunch schedule so the machine would

not sit idle while they ateb! &ake sol"ing the bottleneck a team e6ort

+. Third step: ma&ing a priority the "ing of the problema! Throwing all the resources possible at the problemb! %n the case of man power this means adding more people and the best

people

,. (ourth: Ta&ing steps to prevent it from re-occurringa! #$ample:

i! Pre"entati"e maintenance 7 reduces the number of breakdowns

1. (ifth: using the identication and resolution process to utili/e

the ne"t bottlenec& a! Bottlenecks to mo"e from one process to anotherb! &ust always be looking for a bottleneckc! )hould de"ise strategy for dealing with bottlenecks 78 a continuous

impro"ement model