In the production environment (Plant), SKUs are mostly made-to-order and hence customer tolerance time is higher.
In such an environment there are multiple orders from multiple customers and the greatest challenge faced is to meet the due date.
In any chain or process, there is only one weakest link or resource (called constraint) that determines the strength and output of the whole system. As per TOC methodology, the plan for this environment and pace of the entire system is based on the constraint capacity resource (CCR). The output of the whole system is output of the constraint resource. The TOC methodology also introduces the unique and powerful concept of “Time Buffer “- an additional lead-time beyond the required set up and process times for materials in the production flow.
Instead of trying to solve a complicated net of links between the processing steps and resources, several of which might have limited capacity and making each task to be on time as per the planned schedule, our solution based on the method of planning developed by Dr. Goldratt for manufacturing operations focuses on the capacity constraint resource thereby ensuring OTIF (On time In Full) i.e., delivering the items as per Due date (or Customer expected date) and in full quantity.