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Bottleneck Case Study

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ASSIGNMENT #1 1. What are the methods described in The Goal for identifying a bottleneck? Answer: A bottleneck is any resource whose capacity is equal to or less than the demand placed upon it. a) One has to look at all the resources on the plant and find out if the total market demand is greater than the capacity. If we find one in which demand is greater than capacity, then we will know we have a bottleneck. First, we have to find the total demand for the products produced in a plant than we have to figure out the time taken by each resource to contribute towards filling the demand. If the number of available hours for production (less maintenance time for machines, lunch and breaks for people) for the resource is equal to or less than the hours demanded, then we have a bottleneck. This method was too …show more content…

To improve the overall system performance, Alex and his team has taken few measures they are a) His team ensured that the bottleneck time does not get wasted. b) In addition, they focussed on prioritizing the work, which is done by the bottleneck. They introduced – red and green tags. The red tags go on any materials needing to be processed by a bottleneck, others were green it helped in running the operations smoothly and even during lunch breaks they worked on the bottleneck resources. c) They also used old machinery to increase the overall output. 4. What are three measures useful at the operational level to express the goal and what three common financial measures express the goal to "make money? Answer: The three measures useful at the operational level to express the goal are --- a) Throughput :- – It is the rate at which system generates money for the plant through its sales b) Inventory :- It includes both the finished goods produced and raw materials Inventory stuck under Work in Progress. c) Operational expense :- The amount of money invested to turn inventory into

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