• Journal of the Korea Safety Management & Science
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• v.14 no.2
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• pp.147-158
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• 2012

This paper aims to develop a new chain metrics for obtaining lean Overall Equipment Effectiveness(OEE) and present implementation strategy which considers the properties for Total Productive Maintenance(TPM) to reduce machine losses, Performance Analysis and Control(PAC) to reduce labor losses, Lean Production System(LPS) to reduce floor wastes, and Theory of Constraints(TOC) to minimize the problem of Capacity Constrained Resource(CCR). The study reviews the related literatures and reformulates the structure of machine losses, labor losses and field wastes. The research also develops the integrated productivity metrics according to time, units, reliability and maintainability. It is found that the study develops the actual productivity measure in terms of efficiency, effectiveness and standard productivity. In addition to that, it outlines and develops by using the integrated LPS and TPM, lean OEE measures such as Time Based Productivity(TBP), Unit Based Productivity(UBP), and Reliability & Maintainability Based Availability(RMBA). Implication examples are proposed to make it easier and available for practioners to understand the implementation strategies about TPM OEE, lean OEE and TOC OEE. Futhermore related to other studies, the research contributes to create a new chain productivity measures to clear the interrelationship concepts of productivity, efficiency and effectiveness. Moreover the paper develops the enhanced OEE measures by integration of TPM, PAC, LPS and TOC with the perspective of schedule, throughput, reliability, maintainability and availability.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.1
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• pp.130-139
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• 2016

The purpose of this paper is to analyze the problems and the sources of defective products and draw improvement plans in a small plastic boat manufacturing process using TOC (Theory Of Constraints) and statistical analysis. TOC is a methodology to present a scheme for optimization of production process by finding the CCR (Capacity Constraints Resource) in the organization or the all production process through the concentration improvement activity. In this paper, we found and reformed constraints and bottlenecks in plastic boat manufacturing process in the target company for less defect ratio and production cost by applying DBR (Drum, Buffer, Rope) scheduling. And we set the threshold values for the critical process variables using statistical analysis. The result can be summarized as follows. First, CCRs in inventory control, material mix, and oven setting were found and solutions were suggested by applying DBR method. Second, the logical thinking process was utilized to find core conflict factors and draw solutions. Third, to specify the solution plan, experiment data were statistically analyzed. Data were collected from the daily journal addressing the details of 96 products such as temperature, humidity, duration and temperature of heating process, rotation speed, duration time of cooling, and the temperature of removal process. Basic statistics and logistic regression analysis were conducted with the defection as the dependent variable. Finally, critical values for major processes were proposed based on the analysis. This paper has a practical importance in contribution to the quality level of the target company through theoretical approach, TOC, and statistical analysis. However, limited number of data might depreciate the significance of the analysis and therefore it will be interesting further research direction to specify the significant manufacturing conditions across different products and processes.

• International Journal of Quality Innovation
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• v.9 no.1
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• pp.68-93
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• 2008

The steel bars account for a high percentage of material costs for the current construction projects. At the present time, most of the construction projects for the factories of thin-film transistor liquid crystal display (TFT-LCD) complete the transactions of steel bars when the suppliers ship the steel bars to the temporary storage/processing sites. This paper applies the buy-in concept in the Theory of Constraint (TOC) on the supply chain of steel bars. In this study, suppliers are required to establish warehouses at the construction sites and complete the transactions when the formed and processed steel bars are shipped into the factory sites. The aim is to find a win-win solution to meet with the expectations from constructors as they hope that there is no need to build up inventories but supply is ready at any time. Also, this paper compares and analyzes the traditional supply/inventory model of steel bars and the Demand-Pull (D-P) model under the TOC framework. It is proved that Vendor Management Inventory (VMI) in the D-P model is able to more effectively manage steel bars as a material.

• Journal of the Society of Naval Architects of Korea
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• v.46 no.3
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• pp.362-371
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• 2009

Shipbuilding is a typical 'build to order' industry. It has a business model that generates revenues from building various ships and offshore products in accordance with owner's requirements at each production stage. Under uncertainty in shipping market, it is very essential for the shipbuilder to prepare the fast and competitive decision for product portfolio strategy in order to maximize contribution margin by exploiting production facilities and constraints. In this study, we introduce the unique decision supporting methodology for the optimal product portfolio sets based on Theory of Constraints(TOC). This methodology is established by adopting the concept of Drum Buffer Rope(DBR) in constraints planning and Throughput Accounting (TA) in management accounting of TOC. In addition, Decision Supporting System(DSS) is implemented. This DSS system provides a throughput estimator with reflecting the cost structure of shipbuilding industry and a resource simulator built on heuristic algorithms to operate major constraint-resources in shipyard such as dock, quay and pre-erection area etc. Several examples are presented to show that the proposed methodology and system can effectively support the strategic decision-making process of a global shipbuilding company.

• Journal of the Society of Naval Architects of Korea
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• v.45 no.3
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• pp.315-321
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• 2008

A large ship usually consists of 300 to 500 blocks, for which it is extremely difficult to monitor the whole manufacturing processes from assembly to erection. In an effort to unify all the data and procedures, shipbuilding companies are installing ERP systems, which have brought great improvement throughout the company as a whole. In some departments, however, the ERP systems are not being fully utilized. This paper analyzes and solves the problems revealed especially at the production departments after an ERP system is installed. In this research, firstly a TOC(Theory of Constraints) analysis is done to find out the best solution for those problems. Secondly, based on the solution found, a Monitoring System for hull construction processes is developed with an improved user interface. The visualization of data is designed to reflect the needs of the production departments. The new system supplements the ERP system in that it selectively utilizes the unified data base and is operated under ERP environment. The system is installed in the production departments and its usefulness is verified.

• Proceedings of the KSR Conference
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• 2006.11b
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• pp.990-1003
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• 2006

To cope with the change of railway safety environment and to prevent the catastrophic accident, the railway safety management system was established through the legislation of railway safety rules. And to audit and evaluate the accomplishment of railway safety rules by the railway operators, the Integrated Railway Safety Audit System(IRSAS) has been conducting. This study find out the strategy to stabilize the IRSAS by applying Theory of Constraints(TOC) Thinking Process. For meeting the IRSAS's goal of effective levelling up of railway safety, the two necessary conditions, 1)the secure of substantial safety through the IRSAS and 2)the execution of efficient IRSAS, should be fulfilled. Estimated undesirable effects(UDEs) from the IRSAS were identified, and 3 of them were selected for creating the requisite conflict clouds. Entities from these conflict clouds were synthesized into a core conflict cloud that foamed the base of Current Reality Tree. The strategic direction for change extracted from the conflict cloud is the reinforcement of IRSAS preparation system including the level up of operator's self audit, the deepening of preliminary survey, the establishment of complementing system of audit check list and the build up of auditor's specialization. These injection were logically validated via a Future Reality Tree and expected to be confirmed by further progressing of IRSAS.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.37 no.4
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• pp.63-71
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• 2014

As power consumption increases, more power utilities are required to satisfy the demand and consequently results in tremendous cost to build the utilities. Another issue in construction of power utilities to meet the peak demand is an inefficiency caused by surplus power during non-peak time. Therefore, most power company considers power demand management with time-based electricity rate policy which applies different rate over time. This paper considers an optimal machine operation problem under the time-based electricity rates. In TOC (Theory of Constraints), the production capacities of all machines are limited to one of the bottleneck machine to minimize the WIP (work in process). In the situation, other machines except the bottleneck are able to stop their operations without any throughput loss of the whole manufacturing line for saving power utility cost. To consider this problem three integer programming models are introduced. The three models include (1) line shutdown, (2) block shutdown, and (3) individual machine shutdown. We demonstrate the effectiveness of the proposed IP models through diverse experiments, by comparing with a TOC-based machine operation planning considered as a current model.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.23 no.59
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• pp.21-36
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• 2000

The drum-buffer-rope(DBR) system is a finite scheduling mechanism that balances the flow of the production system. DBR controls the flow of materials through the plant in order to produce products in accordance with market demand, with a minimum of manufacturing lead time, inventory, and operating expenses. This paper integrates the best of MRP push system and JIT pull system with DBR system, efficiently adapts these logics to capacity constraint resources, and contributes to the evolution of synchronous manufacturing. The purpose of this paper is, thus, threefold. The first objective is to identify the frame of theory of constraints(TOC) and the logic of DBR scheduling. The second objective is to formulate the DBR constraint scheduling problems(DBRCSP) in a job shop environments. Finally, the paper is to suggest the solution procedure of DBRCSP for embedding TOC into MRP/JIT along with an numerical expression. In addition, illustrative numerical example is given.

• Proceedings of the Safety Management and Science Conference
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• 2011.04a
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• pp.541-552
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• 2011

Many of Korea major companies have appled as strategy of management innovation Six Sigma, Lean and Theory of Constraints. Six Sigma has mainly focused to reduce variation. Lean has mainly focused to reduce wastes and Theory of Constraints has mainly focused that bottleneck of constrains production and sales. This bottleneck is caused by constraint resources and it should be the main role of manager to explore constraint resource. Although their mainly focus are different, they are used to improve productivity and quality. In this paper, as strategy of management innovation, study on analysis and comparison plan of Six Sigma, Lean and Theory of Constraints. From the literature survey and application cases, it is suggested and discussed that how to plan of application as strategy of management innovation successfully. The suggested plan of application could be a good guideline that it could be a apply of companies.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.274-277
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• 2003

The Theory of Constraints (TOC) is an approach and a philosophy that is used to develop specific management techniques. It was first popularized by the novel, The Goal, that applied the principles to operations management. Since 1997 it has found application in two areas within project management. The first application is scheduling of a single project to reduce project duration and simplify project control. there is a further application to allocate resources that are shared by concurrent project. It is the objective of this paper to explore the fundamentals of critical chain and to pursue an application of critical chain method to construction project by a case study.