Where is the Constraint?
Rudolf Burkhard
Focus is 2X Profit & ROI by: Apply the Theory of Constraints with me. Use 6-Sigma & Lean! Leverage capability. Gain capacity, cut lead time, get 100% reliability & control costs. Get more customers to buy more. DE/EN/FR
The picture of the production line in question is at the end of the article
?·????? Polymer melt (extruder?)
·????? Pump?
·????? Filter?
·????? Spinnerette?
·????? Cold air?
·????? Spinning tower?
·????? Finish application?
·????? Drawing … (stretch fibre)?
·????? Wind up?
·????? The decitex of the fibre?
???????????????????????????????????????????????????????????????????????? Decitex is weight per 10’000m
·????? The market (demand)?
·????? Suppliers?
·????? The mix of decitexes - 8 to 2200?
What is the goal? Is the goal the rate at which the machine makes money??
What blocks the business from making a higher Throughput – higher gross margin per machine or constraint hour?
That would mean the rate at which we wind-up value €/10’000m and time) … what we sell the yarn for.?
o? How would you design a machine like this one?
o?? With balanced capacities … every section has the same capacity.
o?? Unbalanced – you build a constraint into the design?
o? Will the production rate (Kgs/hour) change as the decitex produced is changed?
o? Will the constraint move depending on the decitex?
o?? For heavy decitexes the spinnerette, pump or extruder limit? (Yes or NO?
o?? For light decitexes the wind up becomes the limiting factor? (YES or NO?)
o? What would you do to increase the machine's Throughput?
o? How would you guide sales so that they maximise Throughput per hour? ?The greatest Throughput (gross margin per hour)?
|Valuation & Business Modeling | Business Analyst | Business strategy | Bussines Consulting | Problem solving |Business Strategy | Investment strategies | Market research |
8 个月Connecting ideas from TOC to other thinkers like Charlie Munger, who I believe once said that the goal is not to be the first but to achieve the objective using the least resources/energy possible. First, we need to define the constraints in the market. Then, we should plan the capacities to be neither completely balanced nor completely unbalanced, (as some constraints are always necessary). Additionally, we must consider potential future expansions of machinery when demand becomes a constraint. What do you think Rudolf?
The goal of a for profit biz is to max profit and cash. There’s not enough info; I’m too old for hypotheticals. In my experience the solution will probably be a need to balance product wheels on some assets and dedicated products on others; and lead times. Like NR4 ??
Co-Owner at Rob4Job s.r.o.
8 个月Hi, from my understanding the most crucial will be the proper product mix. Some of the products will have a better throughput per wind/unit of sales (10000m??) per time than others. However, we cannot break physical limits of different decitex yarns (processing speed, technology limitations, etc.) and saying this product is not good for us, it does not give us a sufficient throughput, let do ony these high throughput dnes. So that we will have to find a way how to sell and produce the most beneficial products (offering viry short delivery times or instant delivery, price incentives atc.) as much as possible but still we will have to live with these "bad products" (something like "obligatory production"). The game would be about keeping this "obligatory production" at the least possible level. So from my point of view there will be no physical constraint, the constraint will be at the market.
Looks like a Kevlar line without the oleum ??
--Woodinville Chamber of Commerce, Board
8 个月This is a great realistic example. Asking people what the constraint is without supply any helpful data. That happens all the time.