Production performance improvement with the Theory of Constraints - Hydro Extrusion case

Context

This company, a leader in the field of aluminum, has two main workshops: the press and machining. The main challenge it faced during this mission was related to machining and CNC machines, which was identified as the company's bottleneck during the two-day diagnosis. While the presses were operating in 2x8 shifts, the machining struggled to absorb the workload despite being organized in 3x8 shifts. 

This overload led to significant queues in front of machines, such as CNC machines and saws, thus causing a notable increase in production delays and backlogs.

Objectives

The objectives of this application of the Theory of Constraints are:

• The debottlenecking in machining. The reduction of work-in-progress within the workshop.
• Improvement of the management and utilization of S.D (Available Stock) orders, which aim to decouple the lead-time to deliver to enable faster client delivery, as well as to improve the flow.
• Making the flows visible at the front and inside the machining workshop.

Approach

• Diagnosis to identify the bottleneck.
• Training in the Theory of Constraints for key stakeholders after identifying the constraint, which was in the machining process.
• Modification of parameters in the ERP (Enterprise Resource Planning) system, to reduce inter-operation delays Streamlining the use of SD (Available Stock) orders.
• Timing for updating the range times in the ERP system.
• Systematic use of range times and their adherence by production
• Establishment of a weekly meeting between logistics and Sales Administration (ADV).
• Implementation of operating procedures for start-up, cleaning, shutdown, and first-level maintenance.