Beyond the Theory of Contraints : How to Eliminate Variation and Maximize Capacity

by Levinson; William A.

• ISBN13: 9781563273704
• ISBN10: 1563273705
• Format: Hardcover
• Copyright: 2007-07-23
• Publisher: Productivity Pr

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 variation This 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 Biography

William A. Levinson, principal of Levinson Productivity Systems, P.C., has authored and co-authored several books with the American Society for Quality including Lean Enterprise: A Synergistic Approach to Minimizing Waste, ISO 9000 at the Front Line, SPC Essentials and Productivity Improvement, Leading the Way to Competitive Excellence, and The Way of Strategy.

Table of Contents

Preface	p. ix
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
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
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
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
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
Linear Programming in Microsoft Excel	p. 135
Bibliography	p. 143
Index	p. 147
About the Author	p. 155
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