Production and Operation Managements Advancement in Production Planning and Control Dr.Na GENG Prof.Zhibin JIANG Department of Industrial Engineering Management Shanghai Jiao Tong University
Production and Operation Managements Dr. Na GENG Prof. Zhibin JIANG Department of Industrial Engineering & Management Shanghai Jiao Tong University Advancement in Production Planning and Control
Content Optimized Production Planning Theory of Constraint (TOC) Advanced Planning System (APS) Mass Customization and its Production Planning 2 上浒充通大粤
Content Optimized Production Planning Theory of Constraint (TOC) Advanced Planning System (APS) Mass Customization and its Production Planning 2
Theory of Constraints (TOC)-Introduction The theory was first described by Israel's physicist Dr. Eliyahu M.Goldratt in his book The Goal as a way of managing the business to increase profits in 1980's. TOC is a proven method that can be used by existing personnel to increase throughput(sales),reliability,and quality while decreasing inventory,WIP,late deliveries,and overtime. Successful organizations also adopt TOC to help make tactical strategic decisions for continuous improvement. 上泽充道大睾
Theory of Constraints (TOC)-Introduction The theory was first described by Israel’s physicist Dr. Eliyahu M. Goldratt in his book The Goal as a way of managing the business to increase profits in 1980’s . TOC is a proven method that can be used by existing personnel to increase throughput (sales), reliability, and quality while decreasing inventory, WIP, late deliveries, and overtime. Successful organizations also adopt TOC to help make tactical & strategic decisions for continuous improvement
TOC-Introduction The Theory of Constraints is based on the premise that: "Every real system,such as a business,must have within it at least one constraint.If this were not the case then the system could produce unlimited amounts of whatever it was striving for, profit in the case of a business........ Dr Eli Goldratt 上浒充通大粤
The Theory of Constraints is based on the premise that: “Every real system, such as a business, must have within it at least one constraint. If this were not the case then the system could produce unlimited amounts of whatever it was striving for, profit in the case of a business.……………….” Dr Eli Goldratt TOC-Introduction
图 TOC-Drum Buffer Rope drum Drum Buffer Rope (DBR)is a planning and scheduling solution derived from the Theory of Constraints(TOC). The fundamental assumption of DBR is that within any plant there is one or a limited number of scarce resources which control the overall output of that plant.This is the"drum",which sets the pace for all other resources. In order to maximize the output of the system,planning and execution behaviors are focused on exploiting the drum,protecting it against disruption through the use of "time buffers",and synchronizing or subordinating all other resources and decisions to the activity of the drum through a mechanism that is akin to a“rope
TOC-Drum Buffer Rope Drum Buffer Rope (DBR) is a planning and scheduling solution derived from the Theory of Constraints (TOC). The fundamental assumption of DBR is that within any plant there is one or a limited number of scarce resources which control the overall output of that plant. This is the “drum”, which sets the pace for all other resources. In order to maximize the output of the system, planning and execution behaviors are focused on exploiting the drum, protecting it against disruption through the use of “time buffers”, and synchronizing or subordinating all other resources and decisions to the activity of the drum through a mechanism that is akin to a “rope”. buffer drum rope
TOC-the Steps for Implementation Step 1:Identify the system's constraint(s) What to change? Step 2:Decide how to exploit the system's constraint(s) To What to change? Step 3:Subordinate everything else to the above decision How to cause the Step 4:Elevate the system's constraint(s) change? Step 5:If in the previous step,a constraint has been broken go back to step 1,but do not allow inertia to become the system's constraint 上浒充通大粤
TOC-the Steps for Implementation Step 1: Identify the system's constraint(s) Step 2: Decide how to exploit the system’s constraint(s) Step 3: Subordinate everything else to the above decision Step 4: Elevate the system’s constraint(s) Step 5: If in the previous step, a constraint has been broken go back to step 1, but do not allow inertia to become the system’s constraint What to change? To What to change? How to cause the change?
TOC-Types of Constraint A constraint is anything in an organization that limits it from moving toward or achieving its goal. There are two basic types of constraints:physical constraints and non-physical constraints. A physical constraint is something like the physical capacity of a machine. .A non-physical constraint might be something like demand for a product,a corporate procedure,or an individual's paradigm for looking at the world. The market,capacity,resources,suppliers,finance, knowledge or competence,policy 上浒充通大粤
TOC-Types of Constraint A constraint is anything in an organization that limits it from moving toward or achieving its goal. There are two basic types of constraints: physical constraints and non-physical constraints. • A physical constraint is something like the physical capacity of a machine. • A non-physical constraint might be something like demand for a product, a corporate procedure, or an individual's paradigm for looking at the world. – The market, capacity, resources, suppliers, finance, knowledge or competence, policy
(UDE 1) (UDE 2) (UDE 3) TOC-Thinking process Car's engine will Air conditioning Radio sounds not start is not working. distorted. Engine needs Fuel is not Air is not able The speakers fuel in order Reality Tree getting to to circulate. are obstructed to run. the engine. To identify the current reality There is water The air intake is The speakers in the fuel line. full of water. are underwater Leaves are the unsatisfied The car is in the phenomenon,and the roots are the swimming pool root cause. The handbrake stops The handbrake the car from rolling into is faulty. the swimming pool. Current Reality Tree,CRT An Example of CRT √To answer“what to change” Objective Needs Wants Identify the undesirable effects B D 国 Evaporating Cloud,EC(conflict resolution diagram vWin-Win to solve the conflicts in the company An Example of EC Identify the break through point 上浒充鱼大姿
TOC- Thinking process Reality Tree To identify the current reality Leaves are the unsatisfied phenomenon, and the roots are the root cause. Current Reality Tree, CRT To answer “what to change” Identify the undesirable effects Evaporating Cloud，EC (conflict resolution diagram ) Win-Win to solve the conflicts in the company Identify the break through point An Example of CRT An Example of EC
TOC-Thinking process Future Reality,FRT √Identify "to what to change” Negative Effect Branches vTrimming the negative branches ④Prerequisite Tree How to realize the improvement Transition Tree √Improve 上浒充通大粤
TOC- Thinking process Future Reality, FRT Identify “to what to change” Negative Effect Branches Trimming the negative branches Prerequisite Tree How to realize the improvement Transition Tree Improve
TOC-Applications 1.Production Planning and Scheduling 2.Distribution and Supply Chain 3.Financial Management ④4.Marketing 5.Strategic Planning 6.Project Management 上浒充通大粤
TOC-Applications 1. Production Planning and Scheduling 2. Distribution and Supply Chain 3. Financial Management 4. Marketing 5. Strategic Planning 6. Project Management