Constraints in logistics (Theory of Constraints)
The consideration of constraints in warehouse logistics is based on the theory of bottleneck orientation, also known as the Theory of Constraints (TOC). This is a cybernetic model of economic activity, which is particularly concerned with information processing in dynamic systems and their regulation and control.
If systems are viewed according to the theory of constraints, each consists of individual structural elements that interact with each other but are clearly delineated. Nevertheless, there is always a relationship between the individual elements due to the exchange between them (customers, orders, material flow, controls, computers, employees). In the cybernetic model, they are set in relation to each other (lean).
In simple terms, it is a chain of different processes and project phases. Every industrial chain usually has a weakest link that slows down the progress of the entire chain. This link must be identified, isolated and optimized – all other processes are strictly oriented towards this optimization.
Theory of Constraints in practice:
As described above, industrial companies and their value chains are fundamentally made up of different processes, including the linked companies with different specializations. Resources are often only adapted to each other selectively; bottlenecks are reacted to but not taken into account in advance. Many production sections or warehouse processes have grown organically, i.e. under their own steam, over decades. However, they have not merged into a single production unit. The consequences are often a suboptimal production layout with long transport routes, a poor material flow and poorly coordinated human and machine resources.
Approach:
- Identify the weak point/bottleneck
- Optimize or even exploit the weak point
- Each element is subordinated to the bottleneck
- Relieve weak points
- Repeat bottleneck analysis
According to the TOC, a system grows until it is limited by a bottleneck. A system-wide analysis is necessary to identify the bottleneck, as otherwise the interdependencies of the individual elements are not fully taken into account.
The theory was developed in 1980 by Eliyahu M. Goldratt as the basis of his consultancy work. it was first published in 1990 in a closed form (Goldratt, Eliyahu M.: What is This Thing Called Theory of Constraints and How Should It Be Implemented?).
It is closely rooted in lean thinking.
Further information on lean management can also be found at Lean Method Heijunka.
Image source: Chris Potter / License:(CC BY 2.0)