The System is Always Greater than its Parts: Using the Theory of Constraints and Factory Physics to Transform Manufacturing Operations

Abstract

This chapter is concerned with seeing the systemic implications of a transformation programme in the manufacturing environment of a large multinational paper-based packaging supplier. It is argued that understanding variability was a key success factor in making the necessary improvements within the organisation. Once this systemic perspective had been taken, then the ideas of Factory Physics and Theory of Constraints were applied to the work. Reduced cycle time and increased throughput was created by changing policies and physical factors, managing the constraint with a minimum buffer to protect throughput, and using a maximum buffer to reduce arrival variation. By identifying and diagnosing the greatest sources of variation in a production system and understanding their impact on flow, it is shown how transformation can be taken to a level unobtainable purely through the application of tools.