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Lean/TOC Accounting Accounting methods comparison, profitable accounting, flow accounting, focused accounting, accounting simulation, make or buy decisions

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Old 01-12-2009, 05:42 PM
kvasudevan kvasudevan is offline
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Default Position of the Bottleneck

In TOC, Is there a rule that determines whether it is better to position the system bottleneck at the end of a line or at the beginning of the line?

Does the position make a difference at all?

Operationally, does any one strategy offer distinct advantages?
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Old 01-12-2009, 11:00 PM
onur ulgen onur ulgen is offline
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Smile Position of bottleneck

Assuming that we can plan where the bottleneck should go to,
(1) in a push system, it is better to have the bottleneck at the end of the line if throughput is more important than the cost of WIP inventory,
(2) in a push system, it is better to have the bottleneck at the beginning of the line if the cost of WIP inventory is more important than throughput,
(2) in a constant WIP line, it is better to have it at the end of the line,
(3) in a pull system, it is better to have it at the beginning of the line.

These are general rules. It is recommended that one should simulate the line and test the effects and decide accordingly.

Onur Ulgen
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