Development of performance measurement frame work in manufacturing industries by the application of theory of constraints

Abstract

Performance measurement is a prerequisite to performance improvement. Presently industries are struggling to perk up their performance in order to congregate the challenges from global rivalry, changes in customer desires, modern technological innovations and the economic recession. Effectual management of manufacturing process and throughput enhancement is critical for fiscal viability and an extensive survival of any industry. In order to swear the manufacturing performance and its incessant improvement, the process should be assessed with key performance indicators before and after the elimination of the process constraints. The scope of this research is focused in the recital improvement of manufacturing industries which are the foremost pillar to the Indian economy. In order to track down the factual constraints of the performance improvement, an exhaustive study has been conducted concerning hundred numbers of selected manufacturing industries in India. A model industry was chosen amid them and the assorted performance measure of the production flow line is intended and the holdups of the system constraints were acknowledged. The Theory of Constraints (TOC) optimization technique is selected and applied to the production flow line in order to pull up the system constraints and bottlenecks. To depict the important characteristics of the analyzed system and for further experimentation, a robotic centered work cell was modeled for simulation study. Hollier product grouping and Burbidge chart preparation has been done for the job allocation in various machines as part of work cell formation. Economic project viability was analyzed and logistics accomplishment of maneuver is checked with driving and restraining analysis. The Petrinet theory was applied in modeling with an assumption of the Stochastic operation of the robot and Poission process of the product flow.