A framework to simplify the management of throughput and constraints
A Cambitsis
We show that the prioritization of business improvement and
performance management decisions may be significantly improved
by taking into account the systemic effects of changes made in a
single process area. To do so we build a model of a mining value
chain, taking into account consequential downtime that arises from
downstream and upstream starvation and choking effects of each
activity. Introducing the concept of internal capacity, this approach
yields insight into the relative importance of key metrics such as
loading and hauling rates. We suggest that a holistic view of this
type should be a core component of business improvement and
performance management decisions.
Keywords:value driver trees, production constraints, throughput analysis,
capacity analysis, TOC (Theory of Constraints), activity interdependencies,
unit cost reduction.