M17-S7 - Supply Chain and Bottleneck Management
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In this session we had a nice business game called The Production Dice Game@games which explained the basics of bottlenecks in a production line.
Bottleneck insights:
- All processes are either a bottleneck (constraint where flow < demand), or a non-bottleneck.
- Bottleneck flow should be equal to market demand. Use bottlenecks at 100%. No idle time.
- Bottleneck throughput equals plant throughput. An hour lost at a bottleneck is an hour lost to the whole system. An hour saved at a non-bottleneck is irrelevant.
- Cost of bottleneck is the cost of the entire plant divided by number of bottleneck hours available.
