Everything
else must be subordinated to this decision
i.e. to maximising the utilisation of the
drum capacity.(To make maximum
money on the Drum in the available time.)
E.g. Batch sizes and sequence of the batches
are based solely to utilise the drum capacity
to the fullest. “Economic batch sizes”
are no longer a consideration.
The drum
is scheduled to deliver in the same sequence
as the market demand. Only the drum
is scheduled to make maximum use of its
available capacity. All other machines have
to work in such a way that the drum never
runs out of work and the drum schedule is
not disrupted.
This means more set ups
and lower machine efficiencies on non-drum
machines. Even though it appears that the
non-drum machines are not utilised fully
and some of them are idle from time to time,
this is encouraged. This is contrary
to the traditional way of working but is
actually good for the plant as a whole.
Another important point
is to recognise the fact that Murphy exists.
Murphy’s Law states that if anything
has to go wrong, it will at the worst possible
time. In simpler terms, it means that there
are always bound to be some interruptions,
or unexpected deviations, in our planned
activities. Absenteeism, late deliveries
by suppliers, quality problems etc. are
some commonly known examples of Murphy.
Buffers
(time buffers or stock buffers) are introduced
before the drum in order to protect its
schedule from Murphy. Inventory is not allowed
to accumulate anywhere else, thus reducing
WIP and ensuring faster processing times.
This way, even if there
are interruptions due to bad quality, absenteeism,
breakdowns etc., the drum schedule does
not suffer. Therefore, we get the maximum
money out of the drum, and hence the maximum
money out of the plant.
This ensures that the plant
works only on the material for which there
is a firm market demand. Consequently, it
has better ability to deliver on time and
is able to adjust to a changing market demand
more quickly.
The buffer manger monitors
the extent of buffer depletion. When the
penetration is up to 33%, no expediting
is needed. When the penetration is between
33% and 66%, a plan for expediting is made,
however, no expediting actually takes place.
Expediting is done, i.e. the action plan
is put in to practice, only after the penetration
is more than 66%.
This greatly reduces the
need for fire fighting. Moreover, it ensures
that a plan for expediting is already in
place before the delay actually occurs.
Thus, the expediting under this scheme is
more effective than traditional fire fighting.
Buffers also play an important role in focusing
on the areas where improvements will bring
maximum benefits to the company. Any buffer
depletion means that something did not work
as planned. All causes of buffer depletions
are carefully investigated to determine
the root cause. Elimination/minimization
of the root cause ensures that the system
is now improved and therefore, is having
better reliability and lesser lead-time.
These effects are highly desirable. About
50% of the benefits of adopting a DBR come
from good buffer management alone.
The Rope ties the
material release to the actual market demand.
Thus, only that material is released in
to the system for which there is a firm
order. The sequence of the drum schedule
determines the sequence and timing of material
release. Forecast orders are reduced to
zero.
Using the improvements
in on time delivery and total manufacturing
time, a better marketing strategy can be
used to have further increase in demand
and hence more profits.
-
On
time deliveries will potentially improve
to the tune of 95 - 98%.
-
Inventory can potentially reduce to
30-40%.
-
20-25% capacity can be potentially revealed.
This can be converted to increase in
throughput if there is a good order
book on hand.
-
Provide a system that will give common
priorities to all resources in line
with satisfying the customer.
-
Provide a system to monitor progress
and take corrective actions proactively.
-
Provide a system of ongoing improvements
to focus the improvement efforts.
-
Provide right financial, operational
and shop floor measurements in line
with achieving system goal.
-
The team's morale and effectiveness
will improve because they will be operating
in an environment that is comfortable
with uncertainty and that avoids micro
management.
-
Senior
management time will be freed up for
more developmental activities rather
than fire fighting activities.
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