Implementation Of Theory Of Constraints On Buffer Management In Production Planning

Lee, Siang Tau (2015) Implementation Of Theory Of Constraints On Buffer Management In Production Planning. Project Report. UTeM, Melaka, Malaysia. (Submitted)

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Abstract

Theory of Constraints (TOC) created by Dr.Eliyahu Moshe Goldratt in his book “The Goal” (1984) has become systems’ management philosophy. TOC is one of a continuous improvement concept which enables the company to achieve their goal (money) and enhance the performance of organizations by eliminating the weakest link (constraint) in the process chain. The purpose of this research is to introduce TOC tools and techniques in production planning, maintain a balance between demand and supply and minimize the backlog in the company after implementing the TOC principle. TOC provides a specific methodology for identifying and eliminating constraint through the application of “Five Focusing Steps”, Drum-Buffer-Rope (DBR) principle and Buffer Management to achieve the goal. In this project, the Buffer Management principle of TOC would be used to overcome or address the problems of the case company. The analyzed results had revealed that the Buffer Management was successfully balance the demand and supply. Assigning color-code to job in buffer status can provide information about the sufficient of the production lead time that have been organized. If the buffer status is less than 30%, the red job orders indicated that the amount of supply is insufficient to cover the product’s demand. Besides, this project had proven that the numbers of orders backlog were successfully reduced. The production plan is dependent on the buffer status to manufacture the products. Thus, TOC is one of the techniques which can be applied in production planning in order to manage the problems such as poor due date performance, long production lead time or have backlog order and also to improve the performance of entire production system.

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