INCREASE

MANUFACTURING
CAPACITY
YUZHELEVSKIY A.
GROUP MM2
 OVERVIEW

• CAPACITY IS THE MAXIMUM AMOUNT YOUR MANUFACTURING OPERATION CAN

PRODUCE. CAPACITY IS INCREASED EITHER TO MEET AN ACTUAL (IMMEDIATE)
INCREASE IN CUSTOMER DEMAND OR AN ANTICIPATED (FUTURE) INCREASE IN
CUSTOMER DEMAND.
 OVERVIEW

IMMEDIATE CAPACITY INCREASES ARE USUALLY ACHIEVED BY:

• USING EXISTING EQUIPMENT FOR MORE TIME (ADDING SHIFTS OR OVERTIME)
• USING SOMEONE ELSE'S EQUIPMENT (OUTSOURCING)

FUTURE CAPACITY INCREASES ARE USUALLY ACHIEVED BY:

• USING EXISTING EQUIPMENT MORE EFFECTIVELY (IMPROVING)
• PURCHASING NEW EQUIPMENT (SPENDING)
OVERVIEW
 OVERVIEW

• UNTAPPED POTENTIAL IN YOUR CURRENT FACTORY CAN BE BROKEN INTO TWO

CATEGORIES, EACH OF WHICH REPRESENTS A CONSTRAINT ON CAPACITY:
• EQUIPMENT LOSSES (CAPACITY LOST DUE TO EQUIPMENT RUNNING AT LESS
THAN ITS FULL POTENTIAL)
• SCHEDULE LOSSES (CAPACITY LOST DUE TO TIME THAT EQUIPMENT IS NOT
SCHEDULE TO RUN AT ALL)
 DEFINING CAPACITY

• EQUIPMENT LOSSES REPRESENT THE FIRST PART OF YOUR HIDDEN FACTORY –

ADDITIONAL CAPACITY THAT CAN BE UNLOCKED BY SUCCESSFULLY APPLYING
BEST PRACTICE IMPROVEMENT TOOLS TO REACH BEST-IN-CLASS OEE.
• SCHEDULE LOSSES REPRESENT THE SECOND PART OF YOUR HIDDEN FACTORY –
ADDITIONAL CAPACITY THAT CAN BE UNLOCKED BY SCHEDULING MORE
PRODUCTION TIME.
 DEFINING CAPACITY

• CURRENT CAPACITY IS THE AMOUNT YOU CAN PRODUCE USING YOUR EQUIPMENT AS IS
(AT ITS CURRENT EFFECTIVENESS) AND WITHIN YOUR CURRENT PRODUCTION SCHEDULE.
• TARGET CAPACITY IS THE AMOUNT YOU WILL PRODUCE WHEN YOU REACH YOUR OEE
TARGET (REDUCING EQUIPMENT LOSSES) AND SCHEDULE MORE PRODUCTION TIME
(REDUCING SCHEDULE LOSSES).
• THEORETICAL CAPACITY IS THE AMOUNT YOU WOULD PRODUCE IF THERE WERE NO
EQUIPMENT LOSSES AND NO SCHEDULE LOSSES. IT REPRESENTS MANUFACTURING ONLY
GOOD PARTS, AS FAST AS POSSIBLE, WITH NO DOWN TIME, AROUND THE CLOCK (24/7). IT
RESULTS IN A TEEP SCORE OF 100%.
 LEVERAGING SIX BIG LOSSES

SIX BIG LOSSES:

• SETUPS AND ADJUSTMENTS (PLANNED STOPS)
• BREAKDOWNS (UNPLANNED STOPS)
• REDUCED SPEED (SLOW CYCLES)
• SMALL STOPS
• PRODUCTION REJECTS
• STARTUP REJECTS
LEVERAGING SIX BIG LOSSES
 MANUFACTURING BEST PRACTICES

INFORMATION
• OEE IS IDEALLY SUITED FOR SUPERVISORS THAT WANT TO BENCHMARK AND
MEASURE PROGRESS IN REDUCING EQUIPMENT LOSSES. IT PROVIDES ONE
SIMPLE METRIC, THE OEE SCORE, WITH WHICH TO GAUGE PROGRESS.
• TEEP IS IDEALLY SUITED FOR MANAGERS WHO HAVE INFLUENCE OVER WHEN
PRODUCTION EQUIPMENT IS RUN (E.G., PRODUCTION SCHEDULERS AND SENIOR
FACTORY MANAGEMENT). 
 MANUFACTURING BEST PRACTICES

ACTION
• THEORY OF CONSTRAINTS IS A COLLECTION OF IMPROVEMENT TECHNIQUES
BASED ON THE IDEA THAT EVERY MANUFACTURING PROCESS HAS A
CONSTRAINT THAT ACTS AS A FULCRUM (POINT OF LEVERAGE) FOR THE ENTIRE
PROCESS.
• LEAN MANUFACTURING IS A COLLECTION OF IMPROVEMENT TECHNIQUES
BASED ON THE IDEA THAT WASTE IN ALL FORMS SHOULD BE ELIMINATED FROM
THE MANUFACTURING PROCESS.
TWO GREAT STRATEGIES
TWO GREAT STRATEGIES
TWO GREAT STRATEGIES
TWO GREAT STRATEGIES