Theory of Constraints Handbook - James Cox Iii [154]
The term “bottleneck” was the key term in the OPT® days, and even when the DBR methodology was developed together with the famous book The Goal (Goldratt and Cox, 1984), the terminology was based on bottlenecks. It is always important and enlightening to have a historical perspective of the development of such major managerial approaches as TOC. At that time, in 1984, the much more generic term constraint was not yet coined.
OPT® registered trademark of Scheduling Technologies Group Limited, Hounslow, U.K.
The important insight, partially acknowledged in the OPT®2 days, but becoming clearer later, is:
As complex as the production shop floor may be, the performance of the shop as a whole is impacted by a single work center, which determines both the response time and the maximum potential output of the floor.
Is there really only one capacity constraint (called CCR—capacity constrained resource), or could there be two? Well, technically, it is possible to have two, but assuming we speak about interactive resources (one feeds the other) being driven to their limits, then the performance of the shop is doomed to be unstable and even erratic because of the statistical fluctuation that inevitably occurs between dependent resources.
This chapter is not focused on DBR, but on S-DBR and the transition of the understanding that paved the way from DBR to S-DBR. We just stated one transition from OPT® to DBR and the main way is still ahead of us. Before we proceed, let’s fully understand three different aspects of the TOC approach. Each is material in understanding the development from DBR to S-DBR and the internal logic of S-DBR.
Three Views on Operations Planning and Execution
The basic TOC philosophy was first expressed by the Five Focusing Steps (5FS), which already explain the logic of the TOC production planning and its related BM control. The second viewpoint recognizes the difference of defining the rules behind planning in a world with a significant amount of uncertainty (planning with uncertainty) versus planning to optimize in a deterministic world. At the time of the execution whatever is dictated in planning lays out the objectives and the resulting actions. But then, there is a need to define the rules for the decision-making required to deal with the impact of “Murphy” in executing the plan. It is fascinating to realize that defining the rules for planning and execution lead to the S-DBR planning rules and the role of BM in leading the execution decision-making.
The third viewpoint looks at the achievements of Henry Ford and Taiichi Ohno and their focus on flow as the central objective of operations. It seems that even that viewpoint fully supports the TOC methodology for production planning and execution. The three different