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What are the benefits and challenges of using TOC buffers in production planning and control?

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Production planning and control (PPC) is the process of coordinating and managing the resources, activities, and schedules of a manufacturing system to meet customer demand and optimize performance. One of the methods that can help PPC achieve these goals is the theory of constraints (TOC), which focuses on identifying and eliminating the bottlenecks that limit the throughput of the system. TOC buffers are a key tool in TOC that aim to protect the system from variability and uncertainty by adding extra time, inventory, or capacity at strategic points. In this article, you will learn about the benefits and challenges of using TOC buffers in PPC, and how to apply them effectively.

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Jenna Brinkerhoff, MBA, CPIM, CSCP, CLTD, CTSC

Strategic Sourcing | Process Improvement | Program Management
Wilton Mota

Gerente de Supply Chain (Planejamento, Suprimentos e Logística)
Mahmoud Ghonem

Supply Chain Planning | CPIM Certified | Supply & Production Planner @LG MEA region | MITX Micro Master SCM | Material…

1 Types of buffers

There are three main types of buffers in TOC: time buffers, stock buffers, and capacity buffers. Time buffers are added before the bottleneck or the critical chain (the longest sequence of dependent tasks) to ensure that they are always fed with work and avoid idle time. Stock buffers are added after the bottleneck or the critical chain to ensure that they always have enough output to supply the downstream processes and avoid stock-outs. Capacity buffers are added to increase the available resources or machines at the bottleneck or the critical chain to reduce the cycle time and increase the throughput. Each type of buffer has its own advantages and disadvantages, depending on the context and the constraints of the system.

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Wilton Mota

Gerente de Supply Chain (Planejamento, Suprimentos e Logística)
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Na Teoria das Restri??es (TOC), existem três tipos principais de buffers usados no planejamento e controle da produ??o: buffers de tempo, buffers de estoque e buffers de capacidade. Buffers de tempo s?o margens de seguran?a temporais adicionadas ao cronograma de produ??o para absorver atrasos. Buffers de estoque s?o quantidades de materiais mantidos em estoque para garantir que a produ??o n?o seja interrompida por falta de insumos. Buffers de capacidade envolvem reservar capacidade de produ??o extra para lidar com varia??es imprevistas na demanda ou problemas operacionais. Cada tipo de buffer tem um papel específico na prote??o do sistema de produ??o contra incertezas e varia??es.

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Jenna Brinkerhoff, MBA, CPIM, CSCP, CLTD, CTSC

Strategic Sourcing | Process Improvement | Program Management
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Typically you see three time buffers comprised of a constraint buffer prior to a bottleneck, an assembly buffer prior to final assembly, and a shipping buffer just prior to shipping.

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2 Benefits of buffers

Using TOC buffers can bring several benefits to PPC, such as improving the flow and synchronization of the production system, enhancing customer satisfaction and loyalty, and increasing the profitability and competitiveness of the manufacturing system. This is achieved by reducing variability and uncertainty caused by internal or external factors, delivering products on time and with high quality, maximizing utilization and efficiency of bottleneck or critical chain, and minimizing waste and cost of excess inventory, rework, or expedite.

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Jenna Brinkerhoff, MBA, CPIM, CSCP, CLTD, CTSC

Strategic Sourcing | Process Improvement | Program Management
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Buffers help prevent a constraint from being idle, which ultimately helps to ensure that customer orders are able to be filled and on time.

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3 Challenges of buffers

Using TOC buffers for PPC presents some challenges, such as determining the optimal size and location of the buffers and managing and monitoring them. This requires a careful analysis of the system dynamics, the demand patterns, the process variability, and the performance indicators; it also necessitates clear communication and coordination among different stakeholders. Additionally, balancing the trade-offs between buffers and other objectives may require a holistic and strategic approach to PPC, possibly involving other methods or frameworks such as lean, agile, or green manufacturing.

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Mahmoud Ghonem

Supply Chain Planning | CPIM Certified | Supply & Production Planner @LG MEA region | MITX Micro Master SCM | Material planner | ACSM Membership
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TOC seeks to provide accurate focus on improving the current constraint until it no longer limits throughput. The power of TOC focus towards a goal [Profit]. Successful TOC implementation will have the benefits for increasing profit, capacity improvement, reduce lead time, reducing inventory (WIP).

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4 How to use buffers effectively

In order to use TOC buffers effectively in PPC, you must adhere to certain best practices. This includes identifying and prioritizing the constraints or bottlenecks of your production system in order to improve performance and throughput. Additionally, analyzing your production system and customer demand can help determine the appropriate size and location of your buffers. Furthermore, it is important to implement and maintain your buffers, using visual aids, signals, or indicators to track their status and performance. Finally, you should review and adjust your buffers regularly, using feedback and continuous improvement to optimize your PPC process and outcomes.

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Wilton Mota

Gerente de Supply Chain (Planejamento, Suprimentos e Logística)
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Para usar buffers de forma eficaz no planejamento e controle da produ??o, é crucial seguir algumas práticas recomendadas. Primeiramente, realizar uma análise detalhada do sistema de produ??o para identificar restri??es e áreas de incerteza que necessitam de prote??o. Determinar o tamanho e a localiza??o dos buffers com base em dados históricos, previs?es de demanda e análises de risco. Utilizar software de planejamento avan?ado para monitorar e ajustar buffers em tempo real, garantindo que permane?am otimizados. Envolver toda a equipe na gest?o de buffers, promovendo uma cultura de melhoria contínua e resolu??o de problemas.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Jenna Brinkerhoff, MBA, CPIM, CSCP, CLTD, CTSC

Strategic Sourcing | Process Improvement | Program Management
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Buffers are accompanied often with the explanation of both drums and ropes as they relate to production and throughput in the Theory of Constraints. Drum-buffer-rope scheduling is an approach to manage operations that currently have either a capacity-constrained resource or have some other form of internal constraint.

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What are the benefits and challenges of using TOC buffers in production planning and control?

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1 Types of buffers

2 Benefits of buffers

3 Challenges of buffers

4 How to use buffers effectively

5 Here’s what else to consider

Production Planning

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