The goal was to be on pace to double throughput by the end of the year and build in-process inventory levels to accommodate this increasing demand. USC had done a previous project to improve productivity with an enhanced Management Operating System, but this was still a tall order that specifically required understanding of current capacity, inventory levels, and additional capacity needed to accommodate the constant quarter over quarter increase in demand.
Accomplishing the goal of doubling the company’s throughput meant two things: USC needed to rapidly maximize the existing capacity within both sites and add capacity at each facility, both while ensuring in-process inventory levels were built up and maintained to support this increase.
The USC team took a constraint-based approach to this challenging project by looking at the company’s processes through the lens of the operational bottlenecks that were hampering them.
The separate operations (machine processing work centers) were underutilizing capacity, so providing high-level visibility, as well as tools that added focus at the Value Stream Level and the Constrained Equipment Level were needed to prioritize the areas to address. One powerful tool that was used was the T-Max (short for “theoretical maximum.”) Diagnostic. It involves identifying capacity constraints by focusing on the theoretical maximum of production at work center groupings to understand where the bottlenecks existed based on each operation’s optimal capability. At the prioritized constrained operations at each site, additional focus on “4 Pillars” was used to manage:
- Equipment Availability (no machines down for mechanical reasons)
- WIP Availability at the Constraint (no machines waiting on parts)
- Equipment Operation (no machines down for labor needs)
- Escalation Protocols (Ensure that none of the above conditions were causing lack of operational optimization)