SE503 Advanced Project Management

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Presentation transcript:

SE503 Advanced Project Management Dr. Ahmed Sameh, Ph.D. Professor, CS & IS Theory of Constraints

Background “The Goal” – 1992 Synchronous Manufacturing (techniques) Theory of Constraints (philosophy) Many books, seminars, etc. “Critical Chain” - 1997

TOC Measurements Throughput (maximize quantity shipped) Inventory (minimize WIP and finished goods) Operating Expense ( minimize material, labor, overhead)

Process Characteristics Statistical Fluctuations Dependent Events Direct flow (A to B) Common destination (A to C, B to C) Common source (B from A, C from A) B B A B C A A C

TOC Principles Balance flow (synchronize) Optimize globally, not locally Dynamically identify bottlenecks Bottlenecks limit throughput

Bottlenecks Bottleneck hour = System hour Inventories should protect bottlenecks Let lead time and batch size be variable

Identify the Constraint Capacity or throughput Percent loading Queue sizes Expensive equipment Could be dynamic

Exploit the Constraint Load to 100% Large lot sizes Run through breaks, overtime High maintenance priority

Subordinate the Other Processes Schedule based on the constraint Synchronize production to constraint Small lots Smooth flow Inventory only to support constraint

Elevate the Constraint Improve equipment Reduce statistical variations Reduce dependencies

Repeat the Process New constraint emerges Constraints become external Suppliers Customers/sales Constraints become behavioral/cultural Padding estimates Student’s syndrome Parkinson’s law

Example