Implications of TOC for Process Flow BA 341 Lean Operations Dr Bogdan Bichescu 1 What is Process Flow Refers to the logical sequence of steps needed to make products or deliver services to customers It may include the passing of information or materials from one step to the next Agent Distribution Underwriting Rating 20 policies day 15 policies day 7 policies day 9 policies day Policy Writing 15 policies day 2 Systems for Managing Flow Make to Stock Push output is pushed to the next station as it is completed based on Demand Forecast Make to Order Pull a workstation pulls output from the preceding station as needed based on Demand Systems for Managing Flow Drum Buffer Rope DBR TOC s approach to controlling flow Drum represents the system bottleneck Buffer a protection for the drum measured in time all resources that feed the bottleneck must be given enough time to overcome any delays Rope release materials only when needed Prevents early release of materials Prevents accumulation Time of Buffer WIP Drum Rope bottleneck A B C DE FG RM 7 9 5 8 6 Analysis of a bread making operation Raw Material Bread Making Process Time 3 4 hr 100 loaves WIP Pack Capacity 100 loaves hr Finished Goods What is the constraint process What is the maximum system output Analysis of a bread making operation Raw Material Bread Making Process Time 3 4 hr 100 loaves WIP Pack Capacity 100 loaves hr Finished Goods Assume that Bread Making works at full capacity for 8 hours What are the consequences Analysis of a bread making operation Raw Material Bread Making Process Time 3 4 hr 100 loaves WIP Pack Capacity 100 loaves hr How many hours a day would you schedule for each process Why What are the resulting resource utilizations Finished Goods
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