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Theory of Constraints Sim

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Systems dynamic model testing the Theory of Constraints

Systems dynamic model testing the Theory of Constraints

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  • 1. A Dynamic Simulation of the Theory of Constraints
    by Dave Guggenheim
  • 2. Preface
    • Systems dynamicmodelsoriginatedat MIT
    • 3. Jay Forresterdeveloped the concept
    • 4. Richard Bennett created the first software
    • 5. John Stermanwrote the business text
    Flow
    Stock
  • 6. The Model BeforeToC
    16,800 once per week
    Randnorm(200, 5) per hour
    Randnorm(500, 50) per 8-hour shift
    10 workers @ 50 units per shift
    Randnorm(99, 5) per hour
    Randnorm(1, 5) per hour
    Randnorm(80, 10) per hour
    50% of failures per 4 hours
    Randnorm(150, 5) per hour
    2,400 once per day
  • 7. InboundLogistics
  • 8. Pre-Production
  • 9. Production
  • 10. Production Testing
  • 11. Production Finishing
  • 12. OutboundLogistics
    Average Throughput = 11,000 units per week
    Shipping Capacity = 16,800 units per week
  • 13. The Model AfterToC
    16,800 once per week
    Randnorm(200, 5) per hour
    Randnorm(800, 80) per 8-hour shift
    16 workers @ 50 units per shift
    Randnorm(99, 5) per hour
    Randnorm(1, 5) per hour
    Randnorm(80, 10) per hour
    50% of failures per 4 hours
    Randnorm(150, 5) per hour
    2,400 once per day
  • 14. InboundLogistics
  • 15. Pre-Production
  • 16. Production
  • 17. Production Testing
  • 18. Production Finishing
  • 19. OutboundLogistics
    Average Throughput = 13,500 units per week
    Shipping Capacity = 16,800 units per week
  • 20. In Conclusion
    • The Theory of Constraintsis as real as 3.1415926535…
    • 21. Bottlenecksconstrainthroughputlike a stomachstapling.
    • 22. Bottlenecksrequire a tradeoff.
    • 23. Operating Expense for Inventory and Revenue
    • 24. Bottlenecksmigratelike a moose in rut.
    • 25. Keepingtight control over production requiresspecialtactics and people (Jet Li Six Sigma Black BeltSensei).