Reducing The System Over The Limit

• A situation where a reduction in production will result in less overhead allocated to the respective product

Capacity flexibility means having the ability to rapidly increase or decrease production levels, or to shift production capacity quickly from one product or service to another.

All businesses face constraints. The limiting factors of time, influence, money, and labor play a factor in economic decisions. At some point, a short term working plan is developed from the perspective of “what can we do with what we have currently”? Should we stay the course, or make some adjustments? These decisions are important to the health of the organization. Saturation points become very important considerations. Just like a pitcher of water can sustain only so much sugar in a solution before sugar crystals will fall

Efficiency: Whatever idea, thought, plan or action we do, must be efficient enough to make us reach our set goal.

Another weakness is seen on the limited space for expansion that is in the infrastructure. The current infrastructure can only accommodate 30 employees and even if there is the plan of growth by 20%, the space might not be adequate as growth normally necessitates a lot of space (Gupta & Jayaraman, 2010). This is because, there might be a need for a few offices and the current architecture might not be enough for the expansion and thus could delay the expansion.

As long as the marginal benefit of an activity exceeds the marginal cost, people are better off doing more of it. But as soon as the marginal cost exceeds the marginal benefit, they suddenly become better off doing less of that specific activity. This can be used when deciding how many employees a company should have. To produce the profit-maximizing level of output and hire the optimal number of workers, and other resources, producers must compare the marginal benefits and marginal costs of producing a little more with the marginal benefits and marginal costs of producing a little less. You can decide how many workers to hire for a profit-maximizing car company by

Credible testimonials are also given by psychologist as well as education professionals. In one case a college campus psychologist state, "I always know when finals are because the number of student patients I have will spike dramatically." This quote truly captures the effect of overworking has on the student psychi. The evidence is omnipresent with student, teacher, and medical professionals all supporting the athours

Throughout the entirety of the book, The Goal: A Process of Ongoing Improvement, author Eliyahu M. Goldratt focuses on demonstrating the importance of the Theory of Constraints and what corporations should do in order to increase profits. A major term used throughout the novel is “throughput,” which according to the text, is “the rate at which the system generates money through sales” (Goldratt 60). Once a bottleneck machine in a production process is identified, there are multiple ways to increase throughput without expanding the physical capacity of the machine.

Say we have identified the bottleneck machine of a production process. List at least four things suggested in the book that will result in a greater throughput without actually expanding the physical capacity of the machine.

You might be thinking that this sounds pretty good. After all, being more efficient is a good thing. Controlled, consistent and measurable outcomes also sound good. So, what 's the problem? It turns out that over-rationalizing a process in this manner can cause irrationality. Which means that a rationalized system may result in events or outcomes that were neither anticipated or desired, and in fact, may not be so good. For example, McDonald 's chain of restaurants. Fast food often turns out to be just the opposite and you have to deal with long waits in lines. Fast food is not necessarily good food either, in fact, McDonald 's food is extremely unhealthy and the taste is average. McDonalds also has issues pertaining to the way their food is made, and also the amount of trash that accumulates from their process.

Aristotle describes the "mean" as the perfect amount of something needed for ourselves. Anything that passes the threshold of "excess" or "deficit" in regard to the "mean" will leave a detrimental effect on us. Everyone has their own mean, but the detrimental effect of going over/under their mean is still in effect. One of the simplest examples from my own life involves the amount of time I take studying. It is clear to see how not studying enough will have a negative effect on one's life, but is it possible for someone to over-study within a certain window of time? And the answer is yes, you can certainly study to the point where you will start doing more harm than good for your understanding of the curriculum. Just like many aspects of the

There are constraints on capacity management and these are normally Time and Capacity. Time may be a constraint where a customer has a particular required delivery date. In this situation, capacity managers often "plan backwards". In other words, they allocate the final stage (operation) of the production tasks to the period where delivery is required; the penultimate task one period earlier and so on. This process helps identify whether there is sufficient time to meet the production demands and whether capacity needs to be increased, albeit temporarily.

Every production system needs some control point or points to control the flow of product through the system. If the system contains a bottleneck then the bottleneck is the best place for control. The control point is called the drum because it will strike the beat that the rest of the system uses to function. If there is no bottleneck, then the next best place to set the drum would be a capacity-constrained resource. If neither a bottleneck nor a capacity constrained resource is present, the control point can be

It is a common desire to have a balanced plant, but this cannot be reached if there are problems with the levels of capacity in the plant. If there is not enough capacity in the plant, it almost seems as if the possibility of having throughput is being lost and if there is an excessive amount of capacity there is money that is being wasted, which would be a problem when trying to reduce the operating expenses. However, in reality the closer that a plant comes to being balanced, the closer they get to losing money. “ Look at this obsession with trimming capacity in terms of the goal,

when a wide range of goods is put into each shipment and it offsets the smaller volume of bulk orders.