Research Paper
This research paper describes “bottlenecks” and processes used to identify, isolate and deal with them. Goldratt’s Theory of Constrains has also been discussed and how it is used to identify and overcome process bottlenecks.
The data collected in week one was based on a business inventory. It shows an elaborate flow of inventory in a store. The first step involves collection of data that comes in when the store is open. This data is saved into the stock tables. If the store is closed, the process is pushed forward to the next shift of workers. The system is regularly updated and all the data is checked for any inconsistency. Once validated, the data is stored and a report is generated. Any discrepancies identified automatically initiates reprocessing of the data. The system is efficient, closely monitored and highly organised. The store uses an ERP system that integrates flow of information across all departments. The flowchart provides a diagrammatic representation of the steps taken by the store keeper to monitor the inventory. It is also a diagrammatic representation that shows how the work is done and tasks are accomplished.
A bottleneck can be described as any resource whose capacity is less than the demand assigned upon it. When a bottleneck occurs within the system, it limits throughput. It is a point in an organization where the output narrows. If no bottleneck exists, there’s existence of excess capacity. The system should be changed to create a bottleneck to narrow the flow. In this situation, the main bottleneck identified is time constraint. This is observed at the first processing stage. If inventory comes in when the store is closed, there’s going to be delay and pile up of work because the work has to be pushed forward to the next shift of workers. This really strains the store since more man hours and labor have to be input in order to clear off the back log. More man power and labor have a direct influence on the finances. More money has to be dished out in order to cover for the extra expense. This bottleneck can be dealt with in a number of ways. They include: making the business operate around the clock, making it a 24 hours operation, acquiring using of high quality labor, use a better inventory system that outputs minimal errors, and reduction in setup times.
Goldratt's theory of constraints is based on the idea that constraints affect the efficiency of a system. A constraint can be defined as anything that hinders a system from attaining a higher output or performance. The Goldratt’s Theory provides a process of identifying and eliminating the bottleneck or bottlenecks that occur in an organization. This it does by following a set of procedure in order to identify the constraints. These procedures are: Identification of the systems constraints, making a decision on how to exploit the system constraints, Subordination of all other process to above decision, elevation of the system constraints and finally if the constraints have been broken or have moved, the first step is revisited.
Identification of bottlenecks is very important at any level of organization or a business enterprise. Once identified, measures and steps can be applied and used to help a company produce better, improve their working conditions, maintain stability and increase their profit margin.
References:
Dettmer, H. W. (1997). Goldratt's theory of constraints: A systems approach to continuous improvement. Milwaukee, Wis: ASQC Quality Press.
Ricketts, J. A. (2008). Reaching the goal: How managers improve a services business using Goldratt's theory of constraints. Upper Saddle River, NJ: IBM Press.
