CHAPTER 15

DETAILED SCHEDULING AND CONTROL PROCESSES IN SYNCHRONOUS ENVIRONMENTS WITH TOC

Integrated Operations Management: A Supply Chain Perspective, 2nd ed., Hanna & Newman, Thomson/South-Western © 2007

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INTRODUCTION • Asynchronous value-adding systems: allow separate value-adding activities to be scheduled independently • Bottleneck: any resource that has insufficient capacity to satisfy requirements • Synchronous value-adding systems: require that the timing of value-adding activities be coordinated (synchronized) • The presence of a bottleneck requires that the timing of value-adding activities be coordinated (i.e. synchronized)
Integrated Operations Management: A Supply Chain Perspective, 2nd ed., Hanna & Newman, Thomson/South-Western © 2007
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TOC: THE MANAGEMENT PROCESS 1. Identify system constraints 2. Determine how to exploit the system constraints 3. 3 Subordinate every other decision to the decision made in step 2 4. Elevate the system constraint 5. If the constraint has changed, go back to step 1
Integrated Operations Management: A Supply Chain Perspective, 2nd ed., Hanna & Newman, Thomson/South-Western © 2007
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A SIMPLE SCREEN-PRINTING VALUE-ADDING SYSTEM

Integrated Operations Management: A Supply Chain Perspective, 2nd ed., Hanna & Newman, Thomson/South-Western © 2007

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SCREEN-PRINTING EXAMPLE: SALESPERSON’S PERSPECTIVE
• Sales commission is 7–10% of sales:
– sell lots of expensive items to new customers – results in selling work that cannot be completed

• But if sales commission is 10% of sales for ontime jobs:
– sales force must continually assess the status of operational resources to sell whatever product generates the highest margin per minute at the bottleneck

A more synchronized approach
Integrated Operations Management: A Supply Chain Perspective, 2nd ed., Hanna & Newman, Thomson/South-Western ©