Applying Theory of Constraint on Logistic Management in Large Scale Construction Sites – A Case Study of Steel Bar in TFT‐LCD Factory Build‐Up

Abstract

The steel bars account for a high percentage of material costs for the current construction projects. At the present time, most of the construction projects for the factories of thin‐film transistor liquid crystal display (TFT‐LCD) complete the transactions of steel bars when the suppliers ship the steel bars to the temporary storage/processing sites. This paper applies the buy‐in concept in the Theory of Constraint (TOC) on the supply chain of steel bars. In this study, suppliers are required to establish warehouses at the construction sites and complete the transactions when the formed and processed steel bars are shipped into the factory sites. The aim is to find a win‐win solution to meet with the expectations from constructors as they hope that there is no need to build up inventories but supply is ready at any time. Also, this paper compares and analyzes the traditional supply/inventory model of steel bars and the Demand‐Pull (D‐P) model under the TOC framework. It is proved that Vendor Management Inventory (VMI) in the D‐P model is able to more effectively manage steel bars as a material.

Simulation and scheduling implementation study of TFT-LCD Cell plants using Drum–Buffer–Rope system

“…The five steps of focusing to implement TOC (Goldratt & Cox, 1986;Huang, Chen, Li, & Tsai, 2008;Schragenheim & Ronen, 1990;Umble, Umble, & Murakami, 2006;Watson, Blackstone, & Gardiner, 2007) are:…”

A Multi-Objective Optimization Approach Using Genetic Algorithms for Quick Response to Effects of Variability in Flow Manufacturing

“…DBR can be used here to improve the organization performance when it is limited by capacity constraint resources (CCR) or bottleneck i.e. identification and exploitation of CCR/bottleneck processes to maximize their utilization ( [5] and [7]). CCR/bottleneck utilization limits the organization throughput, it needs to maximize in order to maintain on time deliveries, minimum WIP level and production cost, maximum profit and quality.…”

“…9, 2012 13 | P a g e www.ijacsa.thesai.org based on the theory of constraints (TOC) production methodology originated by Goldartt in 1980. Researchers have defined TOC implementation in five steps ( [4], [5] and [6]); 1) System constraint(s) identification.…”

Path analysis for proposed framework of SCM excellence in Indian manufacturing industry

“…• In achieving SCM excellence, LM depends much on inventory strategy as it positively impacts lead time by 0.24, pull scheduling by 0.88 and order management by 0.5 (Babbar and Prasad, 1998). While lead time and pull scheduling also impacts positively to order management by 0.25 and 0.87, respectively (Huang et al, 2008).…”