This Webinar is for current TOCICO Members only!
Thursday, September 24, 2020 | 9:00 - 11:00 AM (GMT-4)
Capacity buffers are the means to temporarily increase the capacity of an overloaded resource for an extra cost. Such buffers include overtime, temporary workers, and outsourcing.
Buffering is a critical part of planning according to TOC. Treating the options of increasing capacity in a temporary manner as buffers means carefully ensuring that whenever there is a need the buffer can be consumed. Certainly the amount open for the costly extra capacity needs to be monitored and the Green, Yellow and Red zoned be managed.
Capacity buffers should be a strategic issue as they allow the delay of significant investments in purchasing additional capacity based on forecasts. Any growth strategy should consider the option of maintaining capacity buffers to allow capitalizing on emerging new opportunities in the market without the burden of financial obligations to the longer time frame.
The webinar will open the following questions for discussion:
- Is a resource that is often used for 100% of its regular capacity a constraint / bottleneck when it is possible to add capacity for extra cost?
- Is the capacity buffer part of the ‘protective capacity’?
- Is the use of the capacity buffer of the constraint an ‘elevation’?
- Should the extra cost of adding temporary capacity be considered TVC or delta-OE?
Eli Schragenheim is a well known international management educator, author and consultant active in various fields of management like corporate strategy, decision support, innovation, supply chain, project management, shop-floor control, IT and HR. He worked with huge variety of organizations all over the world, including public-sector organizations, industrial, high-tech and start-ups. Since he had joined Dr. Eliyahu M. Goldratt, the famous creator of the Theory of Constraints (TOC) in 1985, Eli Schragenheim had taught, spoke at conferences and consulted all over the globe, including the US, India, China, Japan, Canada, Britain, Russia, Brazil, Colombia, Israel, Germany, Italy, Belgium, South Africa and Australia. He taught and trained high-level managers and consultants to use TOC in the most effective way in all the above countries.
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