"Our factory produces 100 units per day but orders require 150. We have 5 production stages. Everyone seems busy. Adding overtime didn't help much. We're losing orders and customers are frustrated."
| Stage | Capacity (units/day) | Utilization | Queue (units) |
|---|---|---|---|
| Cutting | 180 | 56% | 0 |
| Welding | 110 | 91% | 12 |
| Painting | 100 | 100% | 35 |
| Assembly | 160 | 63% | 0 |
| Testing | 200 | 50% | 0 |
Constraint identified: Painting (Stage 3)
- Capacity: 100 units/day (lowest)
- Utilization: 100% (maxed out)
- Queue: 35 units waiting (largest backlog)
Current waste at the painting station:
- 45 minutes/day lost to color changeovers (3 changeovers × 15 min)
- 8% of painted items need rework (sent back through painting)
- 30-minute lunch break where the booth is idle
Exploitation actions (zero investment):
| Action | Time Recovered | Units Gained |
|---|---|---|
| Batch by color to reduce changeovers (3→1/day) | +30 min/day | +6 units |
| Quality gate BEFORE painting (catch defects earlier) | +8% capacity | +8 units |
| Stagger lunch breaks (painter 2 covers) | +30 min/day | +6 units |
| Total | +20 units/day |
New throughput: 120 units/day (+20%)
| Stage | Current Behavior | New Behavior |
|---|---|---|
| Cutting | Produces 180/day (piles up inventory) | Produce only 120/day (match painting) |
| Welding | Processes in any order | Prioritize by painting schedule |
| Assembly | Waits for painted parts | Buffer: maintain 4-hour supply of painted parts |
| Testing | Tests as items arrive | No change (excess capacity) |
Stop measuring: Individual stage efficiency Start measuring: System throughput (units shipped per day)
| Option | Cost | Capacity Gain | Throughput |
|---|---|---|---|
| Add night shift for painting | $4K/month | +50 units/day | 150/day |
| Second paint booth | $80K one-time | +100 units/day | 200/day |
| Outsource painting overflow | $5/unit | +30 units/day | 150/day |
Recommended: Add night shift first (low investment, quick). Second booth only if demand sustains 150+.
After adding night shift (painting capacity → 150/day):
- New constraint likely moves to Welding (capacity 110)
- Plan: Apply Five Steps to Welding next
graph LR
ROPE["🪢 ROPE<br/>Release: 120/day"]
CUT["Cutting<br/>Cap: 180"]
WELD["Welding<br/>Cap: 110"]
BUF["⏱️ BUFFER<br/>4 hours"]
DRUM["🥁 DRUM<br/>Painting<br/>Cap: 120"]
ASM["Assembly<br/>Cap: 160"]
SBUF["⏱️ SHIP BUF<br/>2 hours"]
SHIP["Shipping"]
ROPE --> CUT --> WELD --> BUF --> DRUM --> ASM --> SBUF --> SHIP
DRUM -.->|"signal"| ROPE
style DRUM fill:#d63031,color:#fff,stroke-width:3px
style BUF fill:#fdcb6e,color:#000
style SBUF fill:#fdcb6e,color:#000
style ROPE fill:#00b894,color:#fff
- Release: Start new work only when Painting signals capacity (120 units/day max)
- WIP Cap: Maximum 60 units in the system at any time
- Priority: If buffer is red (>67% consumed), expedite at all non-constraints
- Color batching: Group painting orders by color — max 1 changeover per day
Constraint Buffer: [████████████░░░░] 75% remaining (GREEN)
Shipping Buffer: [██████████░░░░░░] 62% remaining (GREEN)
WIP: 42 units (cap: 60)
Throughput: 118 units/day (target: 120)
On-time delivery: 94% (was 71%)
| Metric | Before | After Exploit | After Subordinate |
|---|---|---|---|
| Throughput | 100/day | 120/day | 120/day |
| Lead time | 8 days | 5 days | 3 days |
| WIP | 120 units | 80 units | 60 units |
| On-time delivery | 71% | 85% | 94% |
| Overtime cost | $6K/month | $0 | $0 |