Thesis (M.Eng.) - Asian Institute of Technology, 2003

A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Advanced Technologies

Nowadays, customer demands for the products have shifted, particularly in toy Industry. Instead of large volume (quantity) of a particular product, customers now want smaller volume with larger variety and quick response time. Moreover, product life cycle is getting shorter compare to the past. The problems arise are in term of response time, inventory control, data tracking, and meeting the due date. Global Bangkok Limited (GBL), a manufacturer of toys, is facing this situation . . This thesis demonstrates an application of Theory of Constraints in a job shop environment of a Toy Factory. The TOC five-steps continuous improvement methodology was taken as a framework to apply to the current manufacturing system of GBL. Simulation Model is developed and utilized to identify the bottleneck of the manufacturing system. Different production mixes are set and the effects are studied. The results show that the bottleneck is shifted when the production mix changed. Elevations of the bottlenecks are conducted in the simulation model via what-if analysis. Drum-Buffer-Rope material control system is presented. Drum or TOC-based Master Production Schedule development steps are discussed. Tools to help the implementation of DBR are also proposed. In order to achieve the organizational goal, the improvements on management policy are also necessary. The activities that should be implemented to exploit the system's constraint are portrayed.