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Essay heading: Goal
 
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Issue: Business
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Date added: May 5, 2002
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No of pages / words: 2 / 487
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In particular, don't trim capacity to match demand. It's a standard cost-cutting procedure, sure. But you'll need that capacity later, if you're serious about increasing throughput. 4. Find bottlenecks. If manufacturing is what's limiting your throughput, then the problem isn't that people aren't working hard enough...
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You have bottlenecks in your manufacturing processes that are holding up everything else. Find the bottlenecks and do everything you can to fix them. Increase their efficiency, even at the expense of efficiency in non-bottleneck places, because the efficiency of a bottleneck directly determines the efficiency of the entire process, all the way through final payment...
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Theory of constraints approach includes the following steps to improve the performance of a system: ? Identify the system's constraint(s) ? Decide how to exploit the system's constraint(s) ? Subordinate everything else to exploit the constraint(s) ? Elevate the system's constraint(s) ? If in the previous steps a constraint has been broken, go back to step 1, but do not allow inertia to cause a system's constraint...
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The Goal- Summary
These questions are: ? What to change? ? What to change to? ? How to cause the change? Alex uses the concept of "theory of constraints" to find the constraints or the bottlenecks in his plant...
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the goal
In the meantime they also save time on another suspected bottleneck, the heat treatment, by relocating the downstream quality inspection process to before the heat treatment so that defective parts would not waste the bottleneck resource...
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