COMMERCE 2OC3 Lecture Notes - Lecture 11: Flowchart
10 Feb 2018
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The time to produce one unit at that station. The time of the slowest workstation in the system i. e. the process time of the bottleneck. The time for a unit of product to go through the entire empty system. Step 2: develop a plan for overcoming the constraints. Step 3: focus resources on accomplishing step 2. Step 4: reduce the efforts of constraints by offloading work or expanding capability. Step 5: once overcome, go back to step 1 and find new constraints. Release work orders to the system at the pace of the bottleneck. Lost time at the bottleneck represents lost time for the whole system. Increasing the capacity of a non-bottleneck station is a mirage. Increasing the capacity of a bottleneck increases the capacity of the whole system. Short-term solution: discourage demand (raise price, longer leadtime, etc. ) Long term solution: increase capacity in the long term.
