The Wild Wild West

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The Goal
According to Jonah, what does it mean to be productive?
If the goal is to make money, then any action that moves us towards that goal is productive. Any action that takes away from making money is non-productive. How do you know if your facility is making money?

Jonah uses Throughput, Inventory, and Operating Expense
A balanced plant is essentially what every manufacturing manager in the whole western world has struggled to achieve. On the hike…
What’s happening isn’t an averaging out of the fluctuations in our various speeds, but an accumulation of the fluctuations. We cannot measure the capacity of a resource in isolation. Some resources should have more capacity than others. Those at the end of the line should have more than those at the beginning. A bottleneck is any resource whose capacity is equal to or less than the demand placed upon it. A non-bottleneck is any resource whose capacity is greater than the demand placed on it. You should not balance capacity with demand. Instead, balance the flow of product through the plant An hour lost on the bottleneck is an hour lost on the entire system. The actual cost of a bottleneck is the total expense of the system divided by the number of hours the bottleneck produces. The implication of these rules is that we must not seek to optimize every resource in the system. A system of local optimums is not an optimum system at all; it is a very inefficient system. With an increase in throughput, it is possible to create new bottlenecks. But most plants have so much extra capacity that it takes an enormous increase in throughput before this happens. Drum-Buffer-Rope

Bottleneck schedule - take the average setup and process times for each type of part and calculate when the batch will clear the bottleneck. Once you know when bottleneck parts reach final assembly, then calculate backwards and determine the release of the non-bottleneck materials along each of their routings. Therefore, the...
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