Implementation of Theory Of Constraints - TOC theory in manufacturing. The challenges faced by the plant. The figures before the implementation and the result.

1. THEORY OF CONSTRAINTS :
A CASE STUDY

2. PRESENTED BY: KHUSHBOO CHOUDHARY
IMPLEMENTATION OF THEORY OF
CONSTRAINTS (TOC) IN PRODUCTION

3. THE CASE STUDY FIRM: KEY FACTS
THE FIRM: A start-up
Deals in
• SHEET METAL
• ALUMINIUM EXTRUSIONS
Sheet metal includes
• Automobile chassis, UPS and invertor chassis and cabinets
• Refrigerating , silencers , leg guards
Aluminum extrusions includes
• Heat sinks, panels
Vendors/ Partners
• Valco India ltd, Indo alusys, Bhushan steels,BALCO, Jindal Steels, Tata
Steels
Sales & distributes
• Schneider electric, Luminous Power technologies, Zenus powers,Tata
motors, Voltas, Ashoka Leyland , Scooter India.

5. FOCUS AREA: Taking HEAT SINK
Manufacturing Unit into Consideration
HEAT INDULGENCE?!
Heat indulgence techniques are the prime concern to remove the
waste heat produced by Electronic Devices, to keep them within
permitted operating temperature limits. Heat indulgence techniques
include heat sinks, fans for air cooling, and other forms of cooling
such as liquid cooling. Heat produced by electronic devices and
circuitry must be self-indulgent to improve reliability and prevent
premature failure. Integrated circuits such as CPUs, chipset, graphic
cards, and hard disk drives are susceptible to temporary malfunction
or permanent failure if overheated.

6. ECOVOLT HEATSINKS
851-153403450010, 851-0001, 851-0002 are the three different types of
heat sinks they are mounted on 666 PCB plate of ecovolt inverter of
luminous power technologies in the ratio of 2:1:1. All the three heat sinks
are having common front and bottom operations; they can be distinguished
by their top operations. As 851-153403450010 has no operations on top
while 851-0001 has three holes on top two are M4 holes and one is M3.
Similarly 851-0002 has two M4 holes on top.

7. Number of Machines
6 SPINDLE
DRILLING
6 SPINDLE
TAPPING
4 SPINDLE
DRILLING
4 SPINDLE
TAPPING
2 SPINDLE
DRILLING
2 SPINDLE
TAPPING
Machines used :-
 SPM
 6 SPINDLE
 4 SPINDLE
 2 SPINDLE
 Manual

8. For manufacturing 851-153403450010
 2- 6 spindles drilling
 2- 2 spindles drilling
 1- 6 spindle tapping
 Single manual machine –
Chamfering
 Manpower- 6 operators

9. 851-153403450010

10. For manufacturing 851-0001
 1- 6 spindle drilling
 1- 2 spindle drilling
 1- 6 spindle tapping
 5-manual machines are
required
◦ For m4 holes
◦ For m3 hole
◦ For chamfering
◦ For tapping m4 holes
◦ For tapping m3 holes
 Manpower- 8 operators

11. 851-0001

12. For manufacturing 851-0002
 1-6 spindles drilling
 1- 2 spindles drilling
 1- 6 spindles tapping
 3 manual machines
◦ For m4 holes
◦ For Chamfering
◦ For m4 tapping
 Manpower- 6 operators

13. 851-0002

14. Figures before the implementation of TOC
32750
26880 28480
October November December
No.of 851-0001 heatsinks
produced
No.of 851-0001 heatsinks produced
Ecovolt 851-0001 monthly production.
Month
No.of 851-0001
heatsinks
produced
Rate value
October 32750 20.35 666436.00
November 26880 20.01 537868.80
December 28480 19.66 559916.80
35040
26240 27840
October November December
No. of 851-0002
heatsinks produced.
No. of 851-0002 heatsinks
produced.
Ecovolt 851-0002 heat sinks
Months
No. of 851-0002 heat
sinks produced.
Rate Value
October 35040 19.76 692222.40
November 26240 19.47 511022.40
December 27840 19.11 532022.40

15. 73880
46060
58880
October November December
No of 851-153403450010 heatsink produced
No of 851-153403450010 heatsink produced
Ecovolt heatsink 851-153403450010
Month No of 851-153403450010 heatsink produced Rate Value
October
73880 18.61 1374906.80
November
46060 18.25 840600.60
December
58880 17.91 1054540.80

16. The CHALLENGES we face.
 Slow throughput
 Less productive
 High non-operating expenses
 Incomplete purchase order
 Inventories deposition near 6-
spindle tapping machine of
851-153403450010 line.
 Slow productive rate due to
poor synchronization between
manual machines and
automatic SPM machines.

17. What is Theory of constraint(TOC) ?
 Identify - the system constraint(s)
 Exploit - the system constraint(s)
 Subordinate - the system constraint(s)
 Elevate – the system constraint(s)
 Go back to step 1 if bottleneck fails

18. Main causes of slow throughput:
 The center distance between 3 holes in front portion is 13mm. but our existing spindles
are not able to adjust lesser than 14mm, that’s why we do 1st and 3rd hole of front portion
and two holes of bottom portion at a time. For the 2nd hole we need extra machine and
labor.
(Note-1:- All three parts are having same front and bottom operations.)
(Note-2:- We use compounded fixtures in which we can perform two operations at a time one
is at front and another one is at bottom).
 First we place unprocessed part in first block, then after the completion of operation we
take it out and place in second block like this we can perform two operations at time.

19. working of compounded fixtures given below:-

20. Elimination
 The problem can be eliminated only when we can adjust our spindles at
the center distance of 13mm.
 Grind our spindles 0.3mm from both the sides
 Remove the capping ring placed over the bearing.
Before Grinding After Grinding

21. Modification done
By doing these modifications we are able to adjust our spindles at
the center distance of 13mm and we can save 4 persons from each
production line.
PRODUCTION LINE:-
 In both 851-0001 and 851-0002 heat sinks
Before:-
After:-
6-spindle
drilling
2-spindle
drilling
6-spindle
tapping
manual M4
drilling
manual M3
drilling
chamfering
manual M4
tapping
manual M3
tapping
6-spindle
drilling
2-spindle
drilling-M4
holes
6-spindle
tapping
2-spindle
tapping-M4
holes
manual M3
drilling
chamfering

22.  In 851-0002
Before:-
After:-
2 spindle machine is vacant now. This we can save two operators
and reduce the non operating expenses. By using automatic
machines instead of manual we can reduce the WIP inventory.
6-spindle
drilling
2-spindle
drilling
6-spindle
tapping
manual M4
drilling
chamfering
manual M4
tapping
6-spindle
drilling
2-spindle
drilling-
M4holes
6-spindle
tapping
2-spindle
tapping-M4
holes

23.  In 851-153403450010
Before:-
Line 1
Line 2
Two 6 spindle drilling machines and two 2 spindle drilling machines
for drilling holes. But only one 6-spindle drilling machine for tapping
6-spindle
drilling
2-spindle
drilling
6-spindle
tapping
chamfering
6-spindle
drilling
2-spindle
drilling

24. After:-
Line 1
Line 2
we used our vacant operator for running one extra 6-spindle tapping
machine for converting all WIP inventories into FG’s.
6-spindle
drilling
6-spindle
tapping
chamfering
6-spindle drilling 6-spindle tapping

25. Figures after the implementation of TOC
Ecovolt 851-0001 monthly production.
Month
No.of 851-0001 heat sinks
produced
Rate value
October 32750 20.35 666436.00
November 26880 20.01 537868.80
December 28480 19.66 559916.80
Expected 50000 19.66
983000.00
32750 26880 28480
50000
October November December january(till 29th)
No.of 851-0001 heatsinks produced
No.of 851-0001 heatsinks produced

26. Ecovolt 851-0002 heatsinks
Months No. of 851-0002 heatsinks produced. Rate Value
October 35040 19.76 692222.40
November 26240 19.47 511022.40
December 27840 19.11 532022.40
Expected 50000 19.11 955500.00
35040
26240 27840
50000
October November December january(till 29th)
No. of 851-0002 heatsinks produced.
No. of 851-0002 heatsinks produced.

27. Ecovolt heatsink 851-153403450010
Month No of 851-153403450010 heatsink produced Rate Value
October
73880 18.61 1374906.80
November
46060 18.25 840600.60
December
58880 17.91 1054540.80
Expected
100000 17.91 1791000.00
73880
46060
58880
100000
October November December january(till 29th)
No of 851-153403450010 heatsink produced
No of 851-153403450010 heatsink produced

28. Rate of production : A comparison
Rate of production per shift. (Before)
Part code
No.of parts/
shift
WIP
No. of operators
required
No.of machines required
No.of
working days
Mothlty
production
capacity
Price
rate/Part
Total
value
Operator's/
month
wages
Total wage
value given
Net value
Manual SPM
851-0001 2000 500 8 5 3 20 40000
19.66 786400 7045 56360 730040
851-0002 2000 500 6 3 3 20 40000
19.11 764400 7045 42270 722130
851-
153403450010
4000 1000 6 1 5 20 80000
17.91 1432800 7045 42270 1390530
Total 2842700

29. Rate of production per shift. (After)
Part code
No.of parts/
shift
WIP
No. of operators
required
No.of machines required
No.of
working days
Mothlty
production
capacity
Price
rate/Part
Total
value
Operator's/
month
wages
Total wage
value given
Net value
Manual SPM
851-0001 2500 0 6 2 4 20 50000
19.66 983000 7045 42270 940730
851-0002 2500 0 4 1 4 20 50000
19.11 955500 7045 28180 927320
851-
153403450010
5000 0 5 1 4 20 100000
17.91 1791000 7045 35225 1755775
Total 3623825
Profit Value 781125

30. Goal Achieved!
 Proper utilization
 Synchronized form
 Increased throughput
 Completion of purchase order
 Operator saved:
o In 851-153403450010:- 1
o In 851-0001:- 2
o In 851-0002:- 2