- A: The idea is to increase input x to the limit because there is room in F
- B: The idea is that F is being used to the limit, so increase F to make more room.
The general public tends to think in terms of A,
- constraint theory asserts that B What conditions should this be? If the additional cost of F is high and you want to increase y production and the dependency network is simple, A is better.
- B, because production hasn’t increased.
- On the other hand, in order to make F work without a break, a buffer waiting for processing is needed in front of it, where the waiting time occurs.
- The Theory of Constraints criticized the fact that in a complex factory, if you do A, intermediate inventory will be stored here and there, and overall throughput will deteriorate.
- So, implicitly, we’re assuming that multiple F’s are connected in series.
- Value is placed on throughput, not production volume
Supply and demand fluctuate, so even if there is a bottleneck now, it can sometimes be expected to dissipate over time before activities to eliminate the bottleneck come to fruition.
Designed to be expandable as needed
Whether the cost of the standby status
- Land costs money even if you don’t use it.
- Some of them cost standby power.
The more intermediate product you have in your buffer, the faster you can get the final product when you need it.
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This distortion is due to the fact that the theory of constraints assumes corporate accounting
- Material costs are incurred when materials are started to be processed, and income is received only after the final product is shipped.
- This is just that type of contract.
- For example, if it’s “I’ll pay in advance, ship as soon as possible when you need it, paint color is undecided”, the best way is to process it to pre-paint condition and wait
- Companies talk about warehousing costs for inventory.
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