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The 2 Constants
1.
The 2 Constants: Metrics and Bottlenecks What is the first assembly line that most people think of? Most supply chain professional’s answer would be Henry Ford’s Model T assembly line. Assembly and production lines have been around for many years and there are still many that exist today that are very similar to the Model T assembly line. There have been many efficiency improvements, automation and technology advancements since the Model T production line but they will all have in common two things. Those two things are metrics and bottlenecks. Metrics exists to measure performance over a period time and guide the company on how to optimize the supply chain. Some of the most common metrics associated with production or assembly lines are efficiency, quality, total cost, throughput, and cycle time. These metrics really shine a light on how operations within the line are performing but also on where issues might be. Metrics are crucial to measure success and to improve, yet sometimes companies don’t use the right metrics. Bill Waddell from the Lean Management Institute stated that, “the flaw in most performance measurement schemes is a failure to differentiate between metrics that measure overall process or value stream outcomes, and metrics of events and activities at isolated points along the value stream. Management focus must be on total cost, and metrics such as labor efficiency and machine utilization should only be data points that shop-floor managers can use or not as they see fit to help them attain lowest total cost.” The metrics that measure total costs are the most valuable metrics. When the entire company along Figure 1.1
2.
with the assembly line have the unified goal of lowering those total costs metrics, massive growth in the company will follow. Everyone knows the saying, “you are only as strong as your weakest link.” This saying applies to many situations such as sports teams but it definitely applies to a production or assembly line. The weakest link in an assembly line is the bottleneck within it. The bottleneck is the slowest process within the production or assembly line. Every production line has the goal of making the line faster and more cost effective. Dr. Eliyahu
Goldratt’s “Theory of Constraints” speaks of constraints and how to approach improving a production line. It is stated that the, “core concept of the Theory of Constraints is that every process has a single constraint and that total process throughput can only be improved when the constraint is improved. A very important corollary to this is that spending time optimizing non-constraints will not provide significant benefits; only improvements to the constraint will further the goal (achieving more profit).” Production line managers go through the cycle everyday of trying put fires out on the production line and to try to make it run smoother and faster. If they use the 5 focusing steps the the Theory of Constraints, they have a better chance of seeing improvements and a faster throughput time. The five steps are outlined in figure 1.2. From my own experience on a jet production line, I used these five steps and saw great results. I realized that sometimes eliminating a bottleneck can be as easy as cross-training employees. There will always be a Figure 1.2
3.
bottleneck in a production or assembly line, so it is always beneficial to continually implement these steps. Production and assembly lines have come a long way in the past 100 years. There is still growth and improvement to be had. Two things will always exist in the lines, and those are metrics and a bottlenecks. These two constants not only exist in manufacturing and assembly environments but also across entire supply chains and value chains. It doesn’t always take technology advancements to improve productions lines. What will help on a daily basis is quality metrics and improving the bottleneck. By: Jackson Horne http://leaninstituut.nl/publications/1106/Manufacturing_Metrics.pdf http://www.leanproduction.com/theory-of-constraints.html
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