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  • Capacity MGT

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    Ruchi Kumari
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    The document discusses constraint management and capacity planning. It defines constraints as any factors that limit a system's performance and restrict output. Constraints can occur within a firm's processes or up and down the supply chain. The types of constraints include physical, space, quality, market, and managerial constraints. A bottleneck is a special type of constraint relating to capacity shortage. Firms must manage constraints across the organization as increasing one process's capacity impacts other processes. The Theory of Constraints focuses on actively managing the constraints limiting a firm's progress toward maximizing profits.

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    Capacity Mgt

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    The document discusses constraint management and capacity planning. It defines constraints as any factors that limit a system's performance and restrict output. Constraints can occur within a firm's processes or up and down the supply chain. The types of constraints include physical, space, quality, market, and managerial constraints. A bottleneck is a special type of constraint relating to capacity shortage. Firms must manage constraints across the organization as increasing one process's capacity impacts other processes. The Theory of Constraints focuses on actively managing the constraints limiting a firm's progress toward maximizing profits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    Download as ppt, pdf, or txt
    10 views12 pages

    Capacity MGT

    Uploaded by

    Ruchi Kumari
    The document discusses constraint management and capacity planning. It defines constraints as any factors that limit a system's performance and restrict output. Constraints can occur within a firm's processes or up and down the supply chain. The types of constraints include physical, space, quality, market, and managerial constraints. A bottleneck is a special type of constraint relating to capacity shortage. Firms must manage constraints across the organization as increasing one process's capacity impacts other processes. The Theory of Constraints focuses on actively managing the constraints limiting a firm's progress toward maximizing profits.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    Download as ppt, pdf, or txt
    of 12

    Constraint Management

    Dr. Debomalya Ghosh

    Suppose one of a firms processes were recently reengineered, and yet results were disappointing. Costs were still high or customer satisfaction still low. What could be wrong?

    The answers might be constraints that remain in one or more steps in the firms processes. A constraint is any factor that limits the performance of a system and restricts its output, while capacity is the maximum rate of output of a process or a system.

    Constraints
    Max Z=5x+4y Subject to 3x+3y <=30 6x+6y <=36 where x, y >= 0
    Constraints

    Constraints can occur up or down the supply chain, with either firms suppliers or customers, or within one of the firms process. Constraints are of different types.

    Physical Constraints: Machines, labor, or workstation capacity, or material shortages Space or Quality. Market (demand is less then supply). Managerial (Policy, metrics, or mind set).

    Bottleneck is a special type of a constraint that relates to capacity shortage of a process. Managers are responsible for ensuring that the firm has the capacity to meet current and future demand.

    Managing Constraints across the organization


    Constraint and capacity decisions related to a process need to be made in the light of the role the process plays within the organization and the value chain as a whole, because increasing or decreasing the capacity of a process will have an impact on other processes in the chain.

    Fed Ex & Flying Tigers

    Constraint Management

    Short Term Capacity Planning Theory of Constraint * Identification & Mgt of Bottleneck * Product Mix decisions using bottleneck

    Long Term Capacity


    Economies & Diseconomies of scale Capacity sizing & timing Strategy * Systematic approach to Capacity decisions

    TOC
    Theory of Constraints is a systematic management approach that focuses on actively managing those constraints that impede a firms progress toward its goal of maximizing total value-added funds or sales less discounts and variable costs. To increase profits, firms must look at the big picture-how its processes can be improved to increase the firms overall workflows or reduce its inventory and workforce levels.

    Measuring Capacity, Utilization and performance in TOC

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