 |
In a lot of environments there is a focus on local efficiencies. There is
however a difference between efficiency on a constraint and a non-constraint
resource.
Suppose the material release is done in the same pace as the Drum and we
maintain the rule: Work if there is Work. What are the efficiencies of the
different resources ? |
| |
Output
Needed |
Operating
Time |
Time/hour |
Efficiency % |
Efficiency % |
Parts
produced |
Overstock |
| A |
5 |
8 |
40 |
67 |
100 |
7.5 |
2.5 |
| B |
5 |
6 |
30 |
50 |
100 |
10 |
5 |
| C |
5 |
10 |
50 |
83 |
100 |
6 |
1 |
| D |
5 |
12 |
60 |
100 |
100 |
5 |
- |
| E |
5 |
4 |
20 |
33 |
100 |
15 |
10 |
| Table 8.4.1. Local
Efficiencies |
In the new situation we increase the efficiencies of the non-constraint
resources to 100% and make sure there is sufficient material available. What would be
the consequence of increasing the efficiencies from the non-constraints to 100%?
|
Throughput |
Will the 100% efficiency at the non-constraint resources increase the
output of the factory ? Will we sell one product more by the 100% efficiencies
at the non-constraint resources?
Not at all, because the constraint did not change ! |
What about the consequences for the bottom-line result ? If the
constraint did not change and we are not able to sell one product more, what
will be the effect on Throughput ? Will the Throughput increase ?
No, the 100% efficiencies at the non-constraint resources
will not increase the Throughput. To the contrary, probably the increase in
inventory causes a negative effect on T. |
| Inventory |
Did the changes directly decrease Inventory
? Did the 100% efficiencies at the non-constraint resources reduce the WIP?
NO, to the contrary. The levels of inventory will
increase! |
| Operating Expenses |
Did the Operating Expenses increase ?
Probably. |
What is a supplementary danger of chasing local optimum?
Working on the wrong parts, so material does not arrive in the right sequence at
the constraint. This puts the constraint on idle, which leads to a loss of
"T(hroughput)".
|
