CAPACITY BUFFER MANAGEMENT IN IMPLEMENTING DRUM-BUFFER-ROPE METHODOLOGY IN MAKE-TO-ORDER ENVIRONMENTS

The research work conducted by Orue et al. [1] aims to analyze the impact of protective capacity on the application of the third step of the drum-buffer-rope methodology of the theory of constraints (subordinate everything to the bottleneck) in make-to-order environments. To analyze the impact of protective capacity, a discrete event simulation is performed. Experimental results suggest that, at different levels of variability, different levels of protective capacity are needed to keep the system stable. The higher the variability, the higher the level of protection needed. It can be concluded that the definition of the level of protective capacity required is a strategic decision for the organization. For managers to know and control how much protection is necessary and how much is overcapacity or waste, monitoring and managing the use of protective capacity is paramount. This concept of protection monitoring and control is relatively new in the theory of constraints methodology, but it is applied in the demand-driven adaptive enterprise model [2]. Therefore, it is advisable to manage capacity buffers as is done in the methodology.

Keywords: theory of constraints, drum-buffer-rope, protective capacity, make-to-order, capacity buffer, demand-driven adaptive enterprise