Opt Toc DBR

OPT TOC DBR
Optimized Production Technology

Theory of Constraint
Drum Buffer Rope
Optimized Production
Technology
OPT
History and definition of

OPT
Developed in Israel in early 1970s by Eliyahu

Goldratt
A scheduling approach, using this principle:
Production bottlenecks are the basis for
scheduling and capacity planning
The mechanism, in brief:
Resources are classified as either bottleneck or nonbottleneck

Bottleneck resources are scheduled to maximum
utilization
Non-bottlenecks are scheduled to serve the bottlenecks
Yosephine Suharyanti 2011

Some of the content is adopted from the slide of B. Laksito Purnomo and Yosef Daryanto
9 OPT rules
1.
2.
3.
4.
5.
6.
7.
8.
9.
Balance flow, not capacity

Constraints determine non-bottleneck utilization
Utilization and activation of a resource are not synonymous
An hour lost at bottleneck is an hour lost for the total
system
An hour saved at a non-bottleneck is a mirage
Bottlenecks govern both throughput and inventory
The transfer batch may not, and many time should not, be
equal to process batch
The process batch should be variable, not fixed
Schedules should be established by looking at all of the
constraints.
OPT illustration (1)

Processing time (hours)
Job
Routing
Operation
1
20
40
60
30
20
60
10
30
Operation
Job
20
Schedule without OPT approach:

A
B
C
D
X
Y
10
X
Y
20
X
Y
X
30
X
Z
X
Y
40
X
Y
50
Z
Z
60
70
80
Z
Z
90 100 110 120 130 140 150 160 170 180


Schedule with OPT approach (rule no. 9):
Constraint identification: Machine C (verify!)
Schedule the constraint:
A
B
C
D
Z
10
Z
20
Z
30
Z
40
Z
50
Z
60
X
70
X
80
X
90
X
100
110
120
130
140
150
160
Schedule other resources based on constraint schedule:

A
B
C
D
X
Z
10
Z
20
Z
30
Z
40
Z
50
X
Z
60
X
Z
70
Z
X
80
Z
X
90
Z
110
Z
120
130
140
150
160
Z
X
100
Schedule other items which are not related to constraint:

A
B
C
D
X
Y
Z
10
Y
Z
20
Y
Z
30
Z
Y
40
Z
Y
50
X
Z
60
X
Z
70
Z
X
80
Z
X
90
Z
110
Z
120
130
140
150
160
Z
X
100

Comparison of the result:
Makespan:
without OPT approach: 180 hours
with OPT approach: 160 hours
Machine utilization:
Machine
Without OPT
With OPT
44%
50%
33%
38%
56%
63%
28%
31%
Average
40%
45%

Theory of
Constraint
TOC
History and definition of

TOC
An outgrowth and enhancement of OPT

Developed by Eliyahu Goldratt in 1988
Other names: OPT thoughtware,
synchronous production, synchronized
manufacturing
A management philosophy (compare to
OPT that is a technical approach)
Has wider application than OPT, it is not
just production planning and control

Principles of TOC
The basic principle of TOC: systems throughputs are

determined by its constraint
Constraints categories:
Internal resource constraint --- classic bottleneck: machine,

worker, tool
Market constraint --- market demand less than production
capacity
Policy constraint --- a policy dictates the production rate
TOC focus: the role constraints play in systems in order to

improve system performance toward the goal
Instead of removing the constraints, TOC concerns on
utilizing the constraint, because in many cases, constraints
are given and we could not remove it!
5 steps of TOC
1.
2.
3.
4.
5.
Identify the systems constraint

Decide how to exploit the systems constraint
Subordinate everything else to the decision
made in step 2
Elevate the systems constraint (elevate = make
it possible to achieve the higher performance)
If in the previous steps a constraint has been
broken, go back to step 1
If we do it again and again, it becomes
similar to continuous improvement in TQM
Measuring system
performance in TOC
Two types of performance:
Financial
Operational
Financial measurement: net profit, ROI,

cash flow
Operational measurement:
Throughput
Inventory
Operating expenses (labor, overhead, etc.)

TOC technique
Cause-and-effect analysis (fishbone
diagram)
Evaporating cloud
Buffer management
Drum-buffer-rope

Cause-and-effect analysis


Evaporating Cloud (1)

Evaporating cloud (2)

Evaporating cloud (3)

Buffer management
Buffer to maximize the
utilization of the constraint
max
actual
80
45
40
20
40
35
40
Raw
Materials
Peeler
Slicer
Cooker
Salter
Bag
Packer
Consumer
20
20
20
80
35
45 5
40 20 20

Drum-Buffer-Rope
DBR
Definition of DBR
12
WIP
A
Total 12
C
RM
FG
7
X 5.5
5
DBR is a an essential part of the TOC and

is used to manage bottlenecks
The goal is to schedule the bottleneck for full

utilization and subordinate the rest of the system
to the needs of the bottleneck
21
DBR mechanism
One way to insure the continuous
operation of the bottleneck is to use a
CONWIP mechanism from the beginning of
the line, up to and including the bottleneck
(the pull side)
Push the material downstream once it
passes the bottleneck (the push side)
Therefore, the DBR system is a mixed
pull/push control system

Example: Potato Chips
Organizational Goal: Make quality potato chips

for mass market consumption
Consumer demand is 120 million pounds of
chips per year (350 million pounds of potatoes);
365 days per year, 24 hours per day
Our suppliers can provide twice the amount the
consumer demands
The manufacturing process is shown below
Raw
Materials
Peeler
Slicer
Cooker
Salter
Bag
Packer

23
Consumer
Example: Potato Chips

(cont.)
Output is measured below in thousands of pounds

of potatoes per hour
Seeking to produce as much as possible, we
purchase the maximum amount our suppliers can
provide
Current production methods result in a large
amount of unwanted work in process inventory
max
actual
80
45
40
20
40
35
40
Raw
Materials
Peeler
Slicer
Cooker
Salter
Bag
Packer
Consumer
20
20
20
80
35
45 5
40 20 20

24
Applying TOC and DBR

Step
1: Identify the constraint
The cooker is the drum for the process

Set
the tempo for other operations

Tell upstream operations what to produce
Tell downstream operations what to expect
max
actual
80
45
40
20
40
35
40
Raw
Materials
Peeler
Slicer
Cooker
Salter
Bag
Packer
Consumer
20
20
20
80
35
45 5
40 20 20

25

Step
2: Exploit the constraint
Set a timed buffer between the slicer and

the cooker to ensure it is always
processing to full capacity
Precaution
to keep constraint running if

upstream operations are interrupted
1.2 min.
max
actual
80
45
40
20
40
35
40
Raw
Materials
Peeler
Slicer
Cooker
Salter
Bag
Packer
Consumer
20
20
20
80
35
45 5
40 20 20

26

The suggested buffer size is of the
total actual lead time of the system
(from Sipper & Bulfin)
The best way to set the buffer size is by
experimentation. Start with an ample
level of the buffer, check the range of
buffer variations, and reduce it if
possible

27
Applying TOC and DBR (cont.)
Step 3: Subordinate the process
max
actual
Set the rest of the processes to produce only as much

as the drum can process and eliminate unnecessary
work in process inventory
Maintain a rope which ensures we receive raw materials
from suppliers only when the cooker has consumed
potatoes from the buffer
80
45
40
20
40
35
40
Raw
Materials
Peeler
Slicer
Cooker
Salter
Bag
Packer
Consumer
20
20
20
20
20
20
20

Applying TOC and DBR (cont.)
Step 4: Elevate the constraint
Increase the processing capacity of the cooker

to align production more closely with consumer
demand (i.e. buy another cooker)
Step 5: Return to step 1 if constraint shifts
max
actual
80
45
40
40
40
35
40
Raw
Materials
Peeler
Slicer
Cooker
X2
Salter
Bag
Packer
Consumer
40
40
40
40
40
35
35

29

Opt Toc DBR

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Opt Toc DBR

Uploaded by

Copyright:

Available Formats

OPT TOC DBR

Optimized Production Technology

History and definition of

Developed in Israel in early 1970s by Eliyahu

Resources are classified as either bottleneck or nonbottleneck

Yosephine Suharyanti 2011

Balance flow, not capacity

OPT illustration (1)

Schedule without OPT approach:

90 100 110 120 130 140 150 160 170 180

Yosephine Suharyanti 2011

OPT illustration (2)

Schedule other resources based on constraint schedule:

Schedule other items which are not related to constraint:

Yosephine Suharyanti 2011

OPT illustration (3)

Comparison of the result:

Yosephine Suharyanti 2011

History and definition of

An outgrowth and enhancement of OPT

Yosephine Suharyanti 2011

The basic principle of TOC: systems throughputs are

Internal resource constraint --- classic bottleneck: machine,

TOC focus: the role constraints play in systems in order to

Identify the systems constraint

Two types of performance:

Financial measurement: net profit, ROI,

Yosephine Suharyanti 2011

Yosephine Suharyanti 2011

Yosephine Suharyanti 2011

Yosephine Suharyanti 2011

Evaporating Cloud (1)

Yosephine Suharyanti 2011

Evaporating cloud (2)

Yosephine Suharyanti 2011

Evaporating cloud (3)

Yosephine Suharyanti 2011

Yosephine Suharyanti 2011

DBR is a an essential part of the TOC and

The goal is to schedule the bottleneck for full

Yosephine Suharyanti 2011

Example: Potato Chips

Organizational Goal: Make quality potato chips

Yosephine Suharyanti 2011

Example: Potato Chips

Output is measured below in thousands of pounds

Yosephine Suharyanti 2011

Applying TOC and DBR

1: Identify the constraint

The cooker is the drum for the process

the tempo for other operations

Yosephine Suharyanti 2011

Applying TOC and DBR

2: Exploit the constraint

Set a timed buffer between the slicer and

to keep constraint running if

Yosephine Suharyanti 2011

Applying TOC and DBR

Yosephine Suharyanti 2011

Applying TOC and DBR (cont.)

Step 3: Subordinate the process

Set the rest of the processes to produce only as much

Yosephine Suharyanti 2011