Managing productionaccording to the capacity constraints to gain fluidity and serenity

How SLTS has reduced its work in progress and delays thanks to the Theory of Constraints

 

SLTS manufactures custom-designed products for the aerospace, rail, and defense sectors. The company produces between 2,000 and 2,500 different parts annually, generally in small batches, with complex product lines and intermediate subcontracting operations.

Despite several continuous improvement initiatives, work-in-process inventory was increasing, delays were piling up, and average lead times had stretched from eight to twelve weeks. The Theory of Constraints enabled a change in approach: instead of trying to maximize the productivity of each workstation, SLTS synchronized its workflow around its structural bottleneck, located at the welding station.

With the DBR (Drum-Buffer-Rope) system, production runs are regulated according to the actual capacity of the constraint. Non-bottleneck workstations intentionally maintain excess capacity to absorb unforeseen events and avoid unnecessary queues. This approach sometimes involves starting later to deliver earlier.

The results are tangible: €500,000 in cash flow freed up in the first year and nearly €900,000 over three years, a 10-12% productivity improvement, an on-time delivery rate consistently exceeding 90%, and a lead time in the sheet metal shop reduced from approximately two months to two weeks.

This improved flow management has also brought greater operational flexibility, even contributing to the implementation of the four-day workweek.

This case study illustrates a central principle of the Theory of Constraints: identify the constraint, protect it, and synchronize the entire organization around it.

 

Video available in French with English subtitles

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Marris Consulting is an expert in the Theory of Constraints (ToC) and Critical Chain Project Management (CCPM). As industry consultants, we are focused on helping process and manufacturing industries reach their highest levels of performance by using Constraints Management  combined with Lean and Six Sigma. We also use Critical Chain Project Management which we sometimes combine with Lean engineering to improve project performance. If you are unsure about the actions which need to be implemented to improve operational efficiency, our industrial management consultants can also conduct a performance audit. Furthermore, our experts host numerous Theory of Constraints (ToC), lean and project management training sessions throughout the year.

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About Marris Consulting

Marris Consulting is an industry consulting and training company specialized in the Theory of Constraints (ToC) and Critical Chain Project Management. We focus on improving the performance of manufacturing and process industries by using Constraints Management combined with Lean and Six Sigma. To boost project performance, we also use Critical Chain Project Management (CCPM), which we sometimes combine with Lean Engineering. Our 2-day performance audits, our performance consulting services and our project management, Lean, ToC & CCPM training by our industry consultants offer a wide range of solutions to help our clients around the world reach the highest possible levels of performance.

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