Bottlenecks in a Process
This paper will show data information collected in the past three weeks on BMW Outsourcing Temp Agency. After closely looking at their present operating process for placing the right job candidates with the proper client request, BMW staff felt they can serve the client better if they could receive the information on new job request from the client in the afternoon oppose to receiving the information the morning the job request needs to be filled. Moving the information process to the afternoon will benefit everyone involved and improve the operational process 100 percent.
The main bottlenecking process at BMW happens in the mornings when the hiring process is slowed down to a snail crawl because of the time it takes to interview more than 50 candidates and place them with the right clients request. The first week BMW started collecting data and measuring its operational process using the learning curve the staff was arriving at 6 a.m. and leaving the office at 3 p.m. In week two the collected data from week one help BMW staff start using the learning curve differently and apply Goldratt??™s Theory of constraints to farther identify and overcome the bottlenecking process that has enable the company to operate in a orderly fashion.
According to Dr. Eli Goldratt??™s, companies need to improve in scheduling and controlling their resources and inventories in order too made money. To help companies solve this problem Dr. Goldratt??™s and his associates created the software Optimized Production Technology (OPT). The OPT principles list nine production scheduling rules a company should follow in order to be successful in its operational process. BMW Outsourcing Temp Agency found rules 4 and 5 to be very instrumental in improving and controlling the way they did business.
Optimized Production Technology rule 4 states, an hour lost at a bottleneck is an hour lost for the entire system. BMW found that rule to be very true, and that is why they knew they had to change the way they did business. Optimized Production Technology rule 5 states, an hour saved at bottleneck is a mirage. OPT; rule five became part of the road map that help BMW get on the road to success. According to Dr. Goldratt??™s, a company can adequately measure its success buy two sets of measurements its financial point of view and operation point of view.
The bottom-line, a company is set out to make money in a record time with as little or no problems. Collected data from week one, two and three and applying Dr. Goldratt??™s Theory of Constraints (TOC) has caused BMW Outsourcing Temp Agency to have a more positive way of doing business in a timely fashion. It has only been three weeks and the collected data has shown a noticeable improvement in measurement of time during the hiring process that has been moved too afternoon hours of operation.
Aquilano, Nicholas J., Chase, Richard C., Jacobs, Robert F. (2006) Operations Management
For Competitive Advantage, Retrieved October 24, 2010 from Chapter 18 Synchronous Manufacturing and Theory of Constraints, The McGraw-Hill Companies ISBN: 9780072983906 copyright ?© 2006