CYCLE TIME, INVENTORY, AND THE THEORY OF CONSTRAINTS

Name: Cycle Time, Inventory, and The Theory of Constraints
Start: 2018-07-11T13:00:00
End: 2018-07-11T14:00:00
Location: Online Event

Online sale ends 7/11/18 12:45pm EDT

Wednesday, Jul 11th, 2018
Starts at 1:00PM EDT

ONLINE EVENT
NA
BETHESDA, MD 20817

Overview

Inventory is one of the Toyota Production System's Seven Wastes, and it is directly proportional to cycle time; the amount of time necessary for a customer order to go through a manufacturing (or service) process. The Theory of Constraints explains why most cycle time is waste in most processes. First, no process can operate more rapidly than its constraint or capacity-constraining resource (CCR). Second, favorable variation in processing times does not offset unfavorable variation because time lost at the constraint is lost forever. (This also explains traffic jams that appear out of nowhere during rush hour.) This webinar will explain the Theory of Constraints and also provide attendees with production control methods to reduce inventory and cycle time enormously.

Objective :

Attendees will learn Dr. Eliyahu Goldratt's Theory of Constraints, understand how variation in processing and material transfer times make it impossible to operate a balanced factory at full capacity. Attendees will also learn about the drum-buffer-rope (DBR) production control system that confines inventory to a buffer at or leading to the capacity-constraining resource to ensure that it never runs out of work, while eliminating inventory from the rest of the process.

Areas Covered in the Session :

1: The Theory of Constraints, and its relationship to project management

2:Variation in processing and material transfer times make it impossible to operate a balanced factory (one in which the workload is the same at each operation) at full capacity.

Henry Ford, however, claimed to have done exactly that—and his factories carried only minimal work in process on conveyors and work slides between operations. He succeeded by eliminating the variation in question.
Variation can be suppressed through standard work and the job breakdown sheet—concepts that are actually more than 200 years old.
Recognize, therefore, that pull production control is containment for problems caused by variation, rather than an actual corrective action for it.

3:Theory of Constraints economics

Inventory is an asset only in cost accounting.
Overhead is a sunk cost
Overproduction to absorb overhead and other costs wastes money and increases cycle time
Quantity bargain purchases are often not bargains, and Benjamin Franklin (an influence on Henry Ford) told us this more than 200 years ago.
Labor is a variable cost only when overtime is being paid; it is otherwise a fixed cost for all practical decision-making purposes.
Lost time at the constraint can be as expensive as rework or even scrap (due to loss of the opportunity to make saleable items).
Engineering or managerial economic principles; marginal costs, revenues, and profits for decision-making purposes

4:Theory of Constraints performance measurements

Throughput (more is better)
Inventory (less is better)
Operating expense (less is better)

5:The drum buffer rope (DBR) production control system

6:Techniques for variation reduction

Who Will Benefit:

Manufacturing and quality engineers and technicians.

About Speaker:

William A. Levinson, P.E., FASQ, CFPIM, is the owner of Levinson Productivity Systems PC. He holds professional certifications from the American Society for Quality, APICS, and Society of Manufacturing Engineers.

Event URL: https://www.compliancetrainingpanel.com/Webinar/Topic?WB=MP00104

Organizer: Compliance Training Panel

Website: www.compliancetrainingpanel.com/Webinar/Live

Phone: 844-216-5230

Contact: support@compliancetrainingpanel.com