Drum –Buffer-Rope

Skorkovský

Based on : R. Holt, Ph.D., PE

 Traditional Approach:
Divide and Conquer
Division of Labor breaks down linkages complex
systems into manageable chunks.
Which is harder to manage? Left or Right?

Left Right
We Measure Operational Efficiency

Work flows from left to right

through processes with
capacity shown. Market
Request
Process A B C D E 11

RM FG

Capability
Parts 7 9 5 8 6
per Day
Too Much Overtime
Chronic Complainer
Excellent Efficiency--Near 100%
 Reward Based on Efficiency

Work flows from left to right.

Process A B C D E

RM FG

Capability
P/D 7 9 5 8 6

Both found ways to look busy and

appear to have a capacity of 5 parts/day.
 In reality...

Processes A and B won’t produce

more than Process C for long.

Process A B C D E

RM FG

Potential
P/D 7 9 5 8 6

Reality 5 5 5 5 5
 Then Variability Sets In
Processing times are just
AVERAGE Estimates

Process A B C D E

RM FG

Reality 5±2 5±2 5±2 5±2 5±2

7+9+5+8+6=35, 7=35/5=7 (average)

 What’s an Average? 50%
Half the time there are 5 or more per day at
each process--Half the time less

Process A B C D E

RM FG

Reality 5±2 5±2 5±2 5±2 5±2

Probability 0.5 0.5 0.5 0.5 0.5

Two at a time: 0.25 0.25

Over all: 3% Chance of 5 per day !!!

 Previous Solution: Inventory
Put a day of inventory at each process!

WIP 5 5 5 5 5 Total 25
Process A B C D E

RM FG

Variable 5±2 5±2 5±2 5±2 5±2

Process

WIP=throughput in bottleneck
 System Variability Takes Over--Chaos
Inventory (WIP) quickly shifts position.
Inventory manager/expediter tries to smooth it out.
Distribution problems result. Costs go up.

Process A B C D E

WIP 3 0 10 8 4 Total 25

RM FG

Variable 5±2 5±2 5±2 5±2 5±2

Process
25=3+10+4+8
 System Variability Takes Over--Chaos
An Average of 5 means sometimes 3 and some times 7
Process A B C D E

WIP 3 0 10 8 4 Total 25

RM FG

Variable 5±2 5±2 5±2 5±2 5±2

Process

Shifting work-in-process creates large queues at some

locations. This makes work wait longer to be processed.
 System Variability Takes Over--Chaos
Process A B C D E

WIP 3 0 10 8 4 Total 25

RM FG

Variable 5±2 5±2 5±2 5±2 5±2

Process
Shifting work-in-process creates large queues at some
locations. This makes work wait longer to be processed.
Other workstations can be starved for work. The work they
could be doing is delayed because it is not there (B). They
can’t take advantage of their extra capability. So...
 System Variability Takes Over--Chaos
Process A B C D E

WIP 3 5 10 8 4 Total 25 ->X 30

30=25+5

RM FG

Variable 5±2 5±2 5±2 5±2 5±2

Process
So… Management Helps! Management puts in more work
(Inventory) to give everyone something to do!
Result: It takes longer and longer from time of release
until final shipping. More and more delay!!!!!!!!!!!
 Attempts to Control WIP

Use Kanban Cards-JIT

WIP 5 5 5 5 5 Total 25
Process A B C D E

RM FG

Variable 5±2 5±2 5±2 5±2 5±2

Process
Just-In-Time uses Kanban Cards to limit the queues
building in the system.
No more than 5 parts are allowed at any station.
Looks good, but is it?
Effects of Inventory Limits on Production

What does a Kanban card of 5 Mean?

WIP 5 5 5 5 5 Total 25
Process A B C D E

RM FG

Variable 5±2 5±2 5±2 5±2 5±2

Process
7
Before Can’t
Kanban After exceed
Kanban 5
5+/-2
Average = 5 2 5,5
3
Average = 3,5 = (3*5+5*0,5)/5
 Operation’s Dilemma

Increase
Produce a lot work-in-
process Assumption:
Manage
production We can’t both
increase WIP and
effectively
decrease WIP at the
Costs & Decrease same time.
delivery in work-in-
control process

Injection: Put a large inventory where its needed and

low everywhere else!
 TOC Steps to
Continuous Improvement

Step 1. Identify the system’s constraint.

Step 2. Exploit the system’s constraint.
Step 3. Subordinate everything else to the above
decision.
Step 4. Elevate the system’s constraint.
Step 5. If a constraint is broken (that is, relieved or
improved), go back to Step 1. But don’t allow
inertia to become a constraint.
Five Steps Applied to Flow Operations

WIP 12 Total 12
A B C D E

RM FG

7 9 5 (5,5) 8 6

Five Focusing Steps 7

Step 1. Identify the Constraint (The Drum)

Step 2. Exploit the Constraint (Buffer the Drum)
Step 3. Subordinate Everything Else (Rope)
Step 4. Elevate the Constraint ($?)
Step 5. If the Constraint Moves, Start Over
 Understanding Buffers

WIP Total 12parts/5parts per day=2.5 Days

A B C D E

RM FG

7 9 5 8 6
• The “Buffer” is Time!
• In general, the buffer is the total time from work release until
the work arrives at the constraint.
• Contents of the buffer ebb and flow within the buffer
• If different items spend different time at the constraint, then
number of items in the buffer changes
• but Time in the buffer remains constant.
 We need more than one Buffer

Raw Material Finished Goods

Buffer A B C D E Buffer

RM FG

7 9 5 8 6

There is variability in the Constraint.

To protect our delivery to our customer we
need a finished goods buffer.

There is variability in our suppliers.

We need to protect ourselves from unreliable
delivery.
 Buffer Time is Constant-Predictable

Raw Material Finished Goods

Buffer A B C D E Buffer

RM FG

Raw Material 7 9 5 8 6
Buffer
2 Days Constraint Finished Goods
Buffer Buffer
2.5 Days 1 Day

Processing Lead Time is Constant

 Buffer Management

Constraint Buffer WIP Total 12/5=2.5 Days

A B C D E

RM FG
7 9 5 8 6

WO21 WO17 WO13

WO20 WO16 WO12 • The Constraint is scheduled
WO19 WO15 WO11 very carefully
WO18 WO14 WO10 • Buffer Managed by location
• Individual activities in the
2.5 Days 0 buffer are not scheduled
Time until Scheduled at Constraint
 Problem Identification

A B C D E

RM FG
7 9 5 8 6
WO19
WO21 Constraint schedule
Delayed WO17 WO13
WO20 is in jeopardy!
Parts WO16 WO12
(Red Zone Hole)
WO19 WO15 WO11
WO18 WO14 WO10 Watch WO14 (Yellow)

2.5 Days 0 WO19 OK (Green)

Time until Scheduled at Constraint

 Additional Buffers

Constraint Buffer (as we discussed)

• Protects the Constraint from running out of work
Finished Goods Buffer
• Protects customer delivery from Constraint variation
Raw Material Buffer
• Protects the Release of material from suppliers
Assembly Buffer
• Facilitates speedy flow of products
 Additional Buffers
Ropes
Buffer Types: WIP
Constraint
Constraint
FG
RM Finished goods
Assembly
A B C D E

RM FG
7 9 5 8 6
F G H
RM
8 7 6 Assembly
Raw Material
 Manufacturing is an integrating discipline

TOC
Operations
Thinking
Optimization
Processes
Simulation
Physical
Decisions
Systems
Reliability
Behavior
Supply Chain
People
Organizations Finance Strategy
Capital Projects Projects
Performance Corporate
Uncertainty Full Theory
Measurement Departmental
Investment Scheduling
Assignments Subordination
Measures Manage
Quality Quality Focus
Design for
Experiments