theory of constraints

THEORY OF CONSTRAINTS :A CASE STUDY

PRESENTED BY:

KHUSHBOO CHOUDHARY (2015HB74028)SHASHANK SHEKHAR SINGH (2015HB79013) NANDITA PRADEEP (2015HB74006)VINOY VINCENT (2015HB74020)

IMPLEMENTATION OF THEORY OF CONSTRAINTS (TOC) IN PRODUCTION

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.

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.

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.

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

For manufacturing 851-153403450010

2- 6 spindles drilling 2- 2 spindles drilling 1- 6 spindle tapping Single manual machine –

Chamfering Manpower- 6 operators

851-153403450010


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

851-0001


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

851-0002

Figures before the implementation of TOC

October November December

3275026880 28480

No.of 851-0001 heatsinks produced

No.of 851-0001 heatsinks produced

Ecovolt 851-0001 monthly production.

MonthNo.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

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


73880

4606058880

No of 851-153403450010 heatsink produced


Ecovolt heatsink 851-153403450010

Month No of 851-153403450010 heatsink produced Rate Value

October73880 18.61 1374906.80

November46060 18.25 840600.60

December58880 17.91 1054540.80

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.

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

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.

working of compounded fixtures given below:-

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

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 sinksBefore:-

After:-

6-spindle drilling

2-spindle drilling

6-spindle tapping

manual M4

drilling

manual M3

drillingchamferi

ngmanual

M4 tapping

manual M3

tapping

6-spindle drilling

2-spindle drilling-

M4 holes6-spindle tapping

2-spindle tapping-M4 holes

manual M3

drillingchamferi

ng

In 851-0002Before:-

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

drillingchamferi

ngmanual

M4 tapping

6-spindle drilling

2-spindle drilling-M4holes

6-spindle tapping

2-spindle tapping-M4

holes

In 851-153403450010Before:-Line 1

Line 2

Two 6 spindle drilling machines and two 2 spindle drilling machinesfor 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

After:-Line 1

Line 2

we used our vacant operator for running one extra 6-spindle tappingmachine for converting all WIP inventories into FG’s.

6-spindle drilling

6-spindle tapping

chamfering

6-spindle drilling

6-spindle tapping

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 19.66983000.00

October November December january(till 29th)

32750 26880 2848050000

No.of 851-0001 heatsinks producedNo.of 851-0001 heatsinks produced

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


3504026240 27840

50000

No. of 851-0002 heatsinks produced.No. of 851-0002 heatsinks produced.

Ecovolt heatsink 851-153403450010

Month No of 851-153403450010 heatsink produced Rate Value

October73880 18.61 1374906.80

November46060 18.25 840600.60

December58880 17.91 1054540.80

Expected 100000 17.91 1791000.00


7388046060 58880

100000



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 requiredNo.of

working daysMothlty

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 4000019.66 786400 7045 56360 730040

851-0002 2000 500 6 3 3 20 4000019.11 764400 7045 42270 722130

851-153403450010 4000 1000 6 1 5 20 80000

17.91 1432800 7045 42270 1390530

Total 2842700

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

capacityPrice

rate/PartTotal value

Operator's/month wages

Total wage value given Net value

Manual SPM

851-0001 2500 0 6 2 4 20 5000019.66 983000 7045 42270 940730

851-0002 2500 0 4 1 4 20 5000019.11 955500 7045 28180 927320

851-153403450010 5000 0 5 1 4 20 100000

17.91 1791000 7045 35225 1755775

Total 3623825

Profit Value 781125

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

theory of constraints

Documents