Indiana University Management Essay

Homework 5: TECH 50801 Quality and Productivity in Industry and Technology
QUALITY CULTURE – DETERMINING THE CRITICAL VALUES
ABSTRACT
The Theory of Constraints is a process improvement methodology that emphasizes
the importance of identifying the “system constraint” or bottleneck. By leveraging this
constraint, organizations can achieve their financial goals while delivering on-time-infull (OTIF) to customers. Other common benefits of implementing the Theory
of Constraints include better control over operations, less inventory, reduced conflicts
between team member and drastically reduced firefighting. Often, additional capacity
gets exposed without further capital investment or hiring additional workers.
The Core Idea – Every system has a limiting factor or constraint. Focusing
improvement efforts to better utilize this constraint is normally the fastest and most
effective way to improve profitability. https://www.tocinstitute.org/theory-ofconstraints.html
INFORMATION SOURCE
Lean Production – Theory of Constraints: https://www.leanproduction.com/theoryof-constraints/
Notes from “The Goal” – Theory of Constraints “TOC Summary pdf “ under
module resources
ASSIGNMENT
Identify an easy to understand 5-10 step process that you are familiar with. This could
be a process at work or outside of work. An example of an outside process could be
the airline check-in to boarding process, or an in person visit to the bureau of motor
vehicles for license renewal. Select a process that can be completed in one day. Do
not select a process that stretches across weeks or months where the majority of the
process time is spent in waiting. The introduction should include the background
information on your process including the name of the process and a brief description
of the steps and process flow. A flow diagram or swim lane is extremely helpful in
identify the flow of the process. (If provided, the diagram should not take the place of
overall discussion). The introduction should also include your thesis/problem
statement and the discussion points that you plan to develop in the body of the report.
Remember the thesis should identify the problem that you are trying to solve and the
discussion will be specific to the steps utilized by the theory of constraints.
Discussion should include the following:
•
Find the Constraint: Which step in the simple process is the biggest
constraint? Describe your observations on how you came to this conclusion
and what makes this step the constraint. You can share personal experiences
here. Where possible try to be factual. For example, there may be a long line at
an airline for check in but the line moves relatively quickly, roughly less than 5
minutes from the time you arrived to the time you got your ticket. Versus, a
Homework 5: TECH 50801 Quality and Productivity in Industry and Technology
short line at TSA security check but the line moves very slowly, roughly 15
minutes from the time you arrived at the TSA check-in to the time you passed
TSA inspection. Please note in the above example those times are
approximate.
•
Exploit the Constraint: For the step that you’ve identified as the constraint,
identify quick improvements to the throughput of the constraint using existing
resources for that step in the process. Again, you can share all personal
experiences and where possible try to be factual.
•
Subordinate everything else to the constraint: Review all other activities in
the process to ensure that they are aligned with and truly support the needs of
the constraint. What modifications would you make to upstream resources or
steps in the process to make the constraint more efficient?
• Elevate the Constraint: If the constraint still exists (even if there is
improvement but the constraint remains the weakest link in the process) what
further action can be taken to eliminate it from being the constraint.
There will always be a constraint, the bottleneck or the weakest link. The purpose is
to identify the constraint, walk through the steps to eliminate the current constraint,
and once it is removed, another step becomes the new bottleneck or constraint to focus
on. This is part of the continuous improvement cycle. One step, one piece of
equipment or one part of the workforce will always be the constraint that keeps the
process from being more efficient.
SUBMISSION REQUIREMENTS
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Word File
Double Spaced, Times New Roman Font, 12 point
Minimum 4 pages of discussion (supporting graphics and tables are
welcomed, but they should be in addition to the required discussion length)
Include a Separate Title Page: Times New Roman Font, 14 Point. Centered:
Assignment #, Course Name and Number, Due Date, Your Name
Reference Page (minimum 4 references)
***Look at the Grading Rubric and make sure all items are included. If you do not
include and item or a required section, then you lose all points for that section***
Notes from “The Goal” – Theory of Constraints
A View of the Whole – Theory of Constraints (ToC)
• Looks at a system as a whole – not individual parts
• Every system has a goal
• Systems are like chains . . . the performance of a system is limited by the
weak link (constraint)
• The system optimum is NOT the sum of the optimized parts
• If you look at a race car team, does having the best driver ensure that every race will
be won? How about the best driver and the best pit crew? Would having the best
car ensure success?
NOTE: For simplicity purposes often times lean practitioners use the phrase
“bottle neck” and constraint interchangeably.
Theory of Constraints – 5 Focusing Steps
1. Find the constraint
Symptoms to look for — resource is heavily stressed, work in progress piles up in front of the
resource, and resources downstream from constraint are regularly idle.
2. Exploit the constraint
The output of the system equals the output of the constraint. Therefore, get as much useful work out
of the constraint as possible. Remove any non-productive work, ensure that there is always
something to work upon, so that the bottleneck is never idle, but don’t overload the bottleneck with
too much work in progress: let the bottleneck “pull” work, and carefully prioritize the work of the
bottleneck.
3. Subordinate everything else to the constraint
Those resources that are not bottlenecks have (by definition) some extra capacity. Use that capacity to
help the bottleneck where possible, resources are already paid for. This might mean slowing other
resources down.
4. Elevate the constraint
Invest resources and time to improve the performance of the bottleneck.
5. Do not let inertia become the constraint
There’s always a bottleneck. There’s always a way to improve further.
Recall this Value Stream Map illustration from Week 5. The lower row of metrics from the various steps provides the
average “touch labor” (processing time) per airplane and the upper row provides the average “wait times” between
process steps (work stations.)
ValuerowStream
Map
1) PAPR-Co
Look at the ‘bottom’
of numbers,
which work station has the highest processing time?
2) Look at the ‘top’ row of numbers, between which two steps has the longest wait times? These would be significant
constraints to the production flow!
Pooches – Work Request
tracking system
Customer
POOCHES
0 Sec
Order
Processor
X1
Supply
Folder 1
Folder 2
Inspector
Shipping
X1
X1
X1
X1
X1
Work Stations
Performance Measures
10 Sec
2 Secs
28 Sec
6 Secs
49 Sec
8 Secs
4 Sec
40 Secs
Top numbers: Wait times
4 Secs
6 Secs
42 Secs
Bottom numbers: Processing times
Theory of Constraints – 5 Focusing Steps
1. Find the constraint
• Is Folder 2’s inbox overflowing?
2. Exploit the constraint
• Is everything Folder 2 does productive?
3. Subordinate everything else to the constraint
• Can you reduce the flow of planes to Folder 2? Or
• Can you increase the output rate of Folder 2?
• (Hint: Are the “Order Processor” or “Supply” employees idle?
Can they multi-task and take on some “Folder 2” workload?
4. Elevate the constraint
• Can we make any investments into this process?
• Training?
• Equipment?
5. Do not let inertia become the constraint
• Find the next bottleneck and repeat!

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