Problem
My Solution has a lot of constraints and doesn’t meet the targets for my business. How do I improve the Solution?
Answer
If you can't remove constraints, then manage them.
Constraints are an opportunity for continuous improvement. According to Constraints Management (also called the Theory of Constraints), there are five steps to addressing a constraint:
Identify: You can’t address a problem if you don’t know it is a problem. That applies to constraints as well. You probably have a pretty good idea of where your constraints are but mapping them out has been shown to provide transparency on the constraints and help you identify ones that you may not have thought of.
Exploit: Get as much as you can out of the constraint “as is.” For example, you might reorganize the work center in small ways to smooth the flow of work and increase productivity.
Subordinate: Here, everything else is synchronized to the rate of the constraint. Experts also suggest re-evaluating your constraints at this stage because the process of subordination can cause the constraint to shift to another work center.
Elevate: Take whatever action is necessary to eliminate the constraint (e.g., replacing or refurbishing outdated equipment, adding manpower at the point of the constraint, or reorganizing the factory to remove wasted motion).
Return to Step One: You will never eliminate all constraints. Elevating a constraint so that it is no longer a constraint just means that something else will become the limiting factor on the flow. As part of your continuous improvement efforts, you need to return to step one, identify the new constraint and assess whether its capacity is sufficient so that the challenge is solvable.
We have a help video you can watch on constraints here.
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Hints:
Step three above is where real performance improvements take place, so be sure you don’t skip over it! We call this part of a demand-driven (or pull-based) production system.
Also, step four above seems the most challenging because it often involves a capital expense. Even if the business can afford the investment, a business case still needs to be made.