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Summary
Summary
The basic principle of the Theory of Constraints (TOC) is the impossibility of running a balanced factory at 100 percent capacity. Variation in processing and material transfer times is the root cause of longer cycle times and higher inventories, which can hinder the ability to run a factory at full capacity.
In Beyond the Theory of Constraints , William Levinson challenges this basic principle by stating that variation in processing and material transfer times comes from special or assignable causes that can be eliminated through traditional quality management techniques. Even random or common-cause variation can be suppressed through lean manufacturing methods.
This compelling book:
Gives a complete overview of the Theory of Constraints and its impact on engineering and managerial economics Illustrates the effect of variation in processing and material transfer times, and shows why this variation prevents achievement of 100 percent utilization Describes methods for reducing variation in processing and material transfer times Discusses methods for increasing productivity and reducing cycle times - these are useful for elevating the constraint (increasing its capacity) and reduce variationThis book will teach business executives, managers, and technical professionals, including quality and manufacturing engineers, how to identify and remove variations and maximize capacity to achieve bottom-line results.
Author Notes
William A Levinson
Table of Contents
Preface | p. ix |
1 The Theory of Constraints | p. 1 |
Implications: Managerial Economics | p. 2 |
Opportunity Costs | p. 3 |
The Economic Impact of Stoppages in the Constraint | p. 5 |
Performance Measurements | p. 6 |
Dysfunctional Performance Measurements and their Effects | p. 7 |
The Equipment Utilization Metric | p. 11 |
Sunk Costs | p. 12 |
The Return on Investment (ROI) Metric | p. 13 |
Variable Costs in the Theory of Constraints | p. 14 |
Finding the Constraint | p. 17 |
Linear Programming | p. 19 |
Simplex Method | p. 20 |
The Market Constraint | p. 27 |
Contractual Requirements and Overtime | p. 28 |
Summary: The Theory of Constraints | p. 29 |
2 Production Control: Pull versus Pig-Swallowing | p. 33 |
Just-in-Time Production Control | p. 34 |
Synchronized Production and Takt Time | p. 35 |
Kanban Systems | p. 39 |
Drum-Buffer-Rope | p. 42 |
Buffer Management | p. 43 |
Simplified Market Pull | p. 45 |
CONWIP | p. 46 |
Statistical Throughput Control | p. 47 |
Flow: Keep the Work Moving | p. 49 |
Flow Lines and Paced Lines | p. 50 |
The Plug Flow Reactor: A Model for the Ideal Situation | p. 50 |
The Flying Boxes: Flow at the Start of the 20th Century | p. 52 |
Summary: Pull Production Control | p. 54 |
3 Variation | p. 57 |
Variation Sources | p. 57 |
"Waiting to Match" and Supply-Chain Dependence | p. 59 |
Batching | p. 60 |
Quality and Reliability Problems | p. 61 |
Effects of Variation: The Matchsticks-and-Dice Exercise | p. 62 |
Effect of Variance: Performance Characteristics of Single-Server Queue | p. 67 |
Summary: Variation | p. 70 |
4 Variation Reduction | p. 73 |
Subdivision of Labor | p. 73 |
Value Stream Analysis | p. 77 |
Workflow Analysis | p. 78 |
Cycle Time Accounting | p. 80 |
"Five Whys" Technique | p. 82 |
Single-Unit Processing | p. 84 |
Process Batching and Transfer Batching | p. 84 |
Batching Increases Cycle Time and Variation | p. 85 |
Parallel Process Batch Processes Are Harder to Control | p. 87 |
Alternatives to Batch Processing | p. 88 |
Single-Minute Exchange of Die | p. 90 |
Military Origins of SMED | p. 92 |
Split-Thread Bolts and Quick-Clamping Flanges | p. 95 |
Work Cells and Unitary Machines | p. 97 |
Spaghetti Diagram | p. 97 |
Work Cells | p. 98 |
The Unitary Machine | p. 100 |
Dedicated Equipment by Product Family | p. 103 |
Summary: Variation Reduction | p. 103 |
5 Productivity improvement | p. 107 |
Friction | p. 107 |
False Economy | p. 109 |
False Economy of Cheap Equipment | p. 110 |
False Economy of Cheap Labor | p. 111 |
False Economy of Cheap Purchases | p. 114 |
False Economy of Cheap Working Conditions | p. 115 |
False Economy of Cheap Procedures | p. 116 |
Motion Efficiency | p. 118 |
In-line Quality Control | p. 120 |
Error-Proofing (Poka-Yoke) | p. 122 |
Self-Check Systems | p. 122 |
Source Inspections | p. 124 |
Autonomation (Jidoka) | p. 125 |
Summarizing In-line Quality Control | p. 126 |
Preventive Maintenance | p. 126 |
Supply Chain Management | p. 128 |
The Beer Game | p. 128 |
Sources of Instability in Supply Chains | p. 129 |
Logistics | p. 131 |
Summary: Productivity Improvement | p. 132 |
Appendix Linear Programming in Microsoft Excel | p. 135 |
Bibliography | p. 143 |
Index | p. 147 |
About the Author | p. 155 |