In decision making processes, it is important to fully understand the problematic situation as well as providing a solution. In order to address and fully understand problematic situations, this paper suggests a complementary method that demonstrates how the Evaporating Cloud (EC) Diagram in the Theory of Constraint method can be used to complement the use of well known system dynamics approach. Exploring the case of general problem situations embedded in the manufacturing process, the paper examines the collective use of two approaches as a means of understanding of the conflict situations faced by production managers, and as a means of providing a basic frame for developing a win-win solution. This paper highlights that a student in production management field could get the benefits in using the integrated approach to better analyze and understand the nature of the problematic situation, and to better understand how and why the taking one action can cause conflicts with an alternative action in order to dissolve problem situations.
[...] PM must B maximize the throughput of the line PM must D Use WIP inventory Production manager must A Improve the performance of a Line PM must C minimize the lead time of the line PM must D' Remove WIP inventory Fig The EC of TOC for the manufacturing problem The dilemma in Fig can be interpreted as follows: that in order to ensure objective A the improvement of the performance of a line, the production managers must B seek the way to maximize the throughput of a line and in order to B seek the way to maximize the throughput of a line, the PM must D use WIP inventory. [...]
[...] This paper investigates how the EC in the Theory of Constraint method can be used to complement the use of well known CLD in system dynamics approach for framing a conflict situation and developing a systematic solution in the case of the use of WIP inventory as a protection purpose. This paper highlights that a student in production management field could get the benefits in using the integrated approach to better analyze and understand the nature of the problematic situation, and to better understand how and why the taking one action can cause conflicts with an alternative action in order to dissolve problem situations Causal Loop Diagram for Framing Problematic Situation System dynamics approach has been used over the past 40 years to understand a problematic situation and then to develop an action for increasing system performance. [...]
[...] A Complementary Use of CLD and EC Production managers could seek a solution for the general manufacturing problem by using the EC or the CLD. However, neither the EC nor the CLD characterization of a problem situation can be expected to depict a fully comprehensive picture of the logic underpinning the various relationships between entities. Although the EC use the overall objective of dilemma resolution to be specified, the EC may represent only a subset of the necessity logic underpinning the relationships. [...]
[...] + + Level of WIP inventory D Need for using WIP inventory + B1 + Throughput performance B Need for improving throughput of a line + Willingness of PM to use WIP inventory B4 - A Efforts for Improving the line performance B3 Willingness of PM to invest WIP inventory + Need for reducing C Manufacturing lead time Due date performance B2 + Need for reducing WIP inventory Level of manfuacturing + lead time Fig Analysis of manufacturing problem with complementary use of EC and CLD Secondly, the integrated CLD approach captures and displays the essence of the EC's necessity logic through a subset of individual cause-effect links and relationships. [...]
[...] Especially, this paper argues that the integrated method suggests that iterative and mutually informed construction of EC and CLD diagrams is possible and desirable in teaching a traditional manufacturing dilemma in production management filed. Our experience in using the EC process to guide development of CLD representations, and using managerial insights from the EC to inform the development of insights from the CLD, has been, in the main, beneficial. Similarly, benefits have arisen from knowledge and recognition of systems archetypes, not only in the development of CLD, and understanding systemic structure, but in taking insights from the CLD to better understand the dilemma in general manufacturing line. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
