Figure 1 depicts a Utopian situation, where every capacity is balanced. It is the ideal factory where the capacity of every process matches that of the preceding and / or succeeding one. This is akin to the laminar flow of a liquid in a pipe.

We have to view the process flow on the shopfloor akin to the flow of liquid through a conduit. The less the obstruction, the smoother the flow, and the liquid moves through with minimum turbulence and negligible losses. This is the state to keep in mind as we go about taking steps to improve the flows across the factory floor.

In an ideal factory, the raw material once handled for the first process must ideally be put down only after all the processing across the various routing are completed. This minimises the non-value-added costs associated with multiple handling of WIP components, thereby improving overall costs which improves competitiveness.

Figure 2: Non-uniform flow (the equivalent of turbulence)

Figure 2 is closer to reality. Let the funnel in the figure represent the factory, where capacities are not balanced. What we observe is that the rate of output is decided by the rate at which the spheres can flow through the narrowest part at the lower end of the funnel.

The output is much lower than the input – The process efficiency is low

Pouring in resources in volumes which can be processed prior to the constriction will only lead to a pile up of inventory at the constriction. That point chokes the system and decides the actual revenue of the business. In this state it is easy to visualize that:

The flow as depicted in Figure 2 is the least cost effective, as resources are poured in, but the constricted flow leads to blockage of working capital, and the business is hit with a non-value-added cost of finance which reduces competitiveness.

Figure 3: Optimising the output within the given constraints

Figure 3 depicts one of the options at our disposal to enhance competitiveness. We can control the rate of input flow, to a level matching the lowest rate of flow in the system. This makes the process efficient / cost effective.

Critical note: A small buffer must be built to ensure that the slowest processes are never starved of material from the preceding processes.

Coming back to the “Takt” time, our aim is to ensure that the rate of flow (capacity) of the slowest process is always above the “Takt” by just enough to meet the steady requirements with a contingency allowance for surges such as peak demand.

This is where we begin our journey of enhancing competitiveness through process flow management.

“Well Begun is Half Done”

- Often attributed to Aristotle

(*Images generated by the author with prompts using Nano Banana)

About the author:

Zurvan Marolia is the former Senior Vice President of Godrej & Boyce Mfg. Co. Ltd, part of Godrej Enterprises Group. He is a former member of the National Manufacturing Council of the Confederation of Indian Industry (CII), and a former Chair of the Manufacturing Council of Godrej & Boyce. Marolia is now a freelance consultant and can be reached at zurvan@takttime.com.