A strategic approach for bottleneck identification in make-to-order environments: A drum-buffer-rope action research based case study

Abstract

Purpose: This study is focused on integrating a strategic perspective for bottleneck selection and exploitation according to the DBR methodology. The researchers developed a systematic process of four steps for the implementation of the first two steps of TOC-DBR in Make-to-Order production systems. This process was derived from the seminal work from Goldratt, introduced key insights from Resource Based View (RBV) and Practice Based View (PBV) strategic perspectives and included original contributions from the authors in understanding what purpose should be fulfilled, what decisions should be made and how the four steps should be applied.Design/methodology/approach: Given the practical nature of the research project, action research (AR) is an appropriate methodological approach, since AR aims to contribute to academic research while helping solve real-world problems.Findings: The proposed systematic process has been successfully tested in the field on a Make To Order case company. Thus, it has been answered the research question regarding systematically selecting a bottleneck and exploiting it to enhance the competitive advantage/firm performance. In fact, the new way of selecting and exploiting its bottleneck improved the results of the company, in particular business turnover and profitability. Additionally, the research process complied with the necessary criteria to assure the research quality required for AR.Originality/value: The key contributions within the systematic process (on Make-to-Order companies) are two: (1) the criteria to select the bottleneck, far beyond a load versus capacity perspective (i.e., providing a strategic perspective that was inspired by the main concepts from the Resource Based View regarding the contribution of strategic resources to sustain competitive position) and (2) the detailed discussion on how to exploit the bottleneck, which was aligned with the Practice Based View and recognised that practices could also provide superior performance to organisations.

Theory of constraints case study in the make to order environment

“…Pretorius (2014) proposed a decision map that included the five steps of the TOC methodology; the map defined a series of strategic points that help the company make the right decision and allow them to move from one step to the next. By contrast, Lizarralde et al (2020) provided a strategic perspective for selecting and exploiting BNs. The researchers developed a systematic decision-making process that systematised the first two DBR stages.…”

“…As shown in Figure 1. Systematic process for steps 1 and 2 of theory of constraints methodology (Lizarralde et al, 2020), the researchers provided a set of four criteria to define how the BN is selected. In addition, three operative sub-steps for deciding how to exploit the BN are included.…”

“…However, other studies have detected difficulties in implementing TOC-DBR (Atwater & Chakravorty, 2002;Pretorius, 2014;Wu & Yeh, 2006). To overcome these issues, Lizarralde, Apaolaza and Mediavilla (2020) developed a systematic decision-making process to apply DBR in MTO scenarios by proposing a change in the first two steps of TOC methodology. The present research analyses the DBR implementation carried out by Lizarralde et al (2020); the objective is to identify the key factors of the implementation on the third TOC step and compare the results with the existing literature to advance the proposed systematic decision-making process.…”

Demand Driven MRP – The need to standardise an implementation process.

“…An example of the standardisation of an implementation process is the work carried out by Lizarralde et al (2020). They created a systematic implementation process of the first two steps of TOC to enhance operative performance in Drum-Buffer-Rope (DBR) implementation (Lizarralde et al, 2020).…”

Dificuldades E Limitadores Da Otimização Da Produção De Placas De Circuito Impresso / Dificulties and Constraints for Optimization on Printed Circut Board Manufacturing

“…On the other hand, the make-to-order are produced on the clients request, i.e., due to the specific utilization they have, they should not be stored because either they can be used by just one customer or they will not be used again at all. Subsequent works added ideas for strategic approach on bottleneck determination of make-to-order products (LIZARRALDE et. al., 2020).…”