Scenario 3: Impact of constraint and itslocation
In the Base Model (with WIP= 4 units, MeanDaily production = 3.5, Maximum Variation Around Mean =2.5 units atall operations), a bottleneck can be established by setting “MeanDaily Production” at 3 units and “Maximum Variation around Mean” at1 unit for a specific process (in Panel B). Create three scenariosby letting operation 1, operation 3, and operation 5 be thebottleneck operation in each scenario. Hit F9 few times. Copy andPaste Special your results from (Panel E) for “1000 Runs” for eachof these three scenarios into the Scenario Output worksheet whereyou have already saved your results for the base model andvariation related scenarios. Click here for discussionquestion.
- Discuss the impact of the location of the“constraint operation” on various system performance measures(including customer service, lead time, productivity, inventoryturnover) shown and clearly defined in Panel E of the model.
- Discuss how these three scenarios (i.e., presence of aconstraint) compare with those from (i) the base model, and (ii)change in variation model (you reported earlier and reproducedbelow).
- In general terms, discuss how these scenarios relates to whatyou have read in The Goal (specifically, The Hike, and thechapter on Capacity and Constraints Management you are reading inthis module.
- In general terms, how do you think the concepts of (i) DesignCapacity, (ii) effective capacity and actual output as discussed inthis chapter relate to this Excel-Based Dice Game.
Note that in each of these three scenarios, thenet change in operating expenses is zero because the model assumesreduction in variation from 2.5 units to 1.0 is worth $600 (@$200/0.5 unit reduction and reduction in capacity from 3.5 to 3.0units is worth $600 (@$600/0.5 unit increased as shown in Cell C43and C44 in Excel-based Model).