Constraint-Analysis

Analyzing efficiency and improving supply chain processes


Our constraint analysis uncovers the root causes of inadequate results or perceived weaknesses. If necessary, we follow your supply chain from your suppliers through your organization to the customers.

Constraint analysis along the value chain

Root causes and problems

We identify bottlenecks in your organization, business processes, or material and information flows and analyse them through cause-and-effect chains.

We reach the core problems.

SITUATION

Supply chains represent a network of machines, materials, transportations, processes, methods, customers, suppliers, employees and business rules, whose interaction is often obscure, always complex, so that results often do not meet expectations or requirements.


But how can efficiency be increased? How can the core challenges be identified?

Solution

The result of the constraint analysis is a so-called reality tree which shows the cause-and-effect relationships between identified symptoms and the root causes.


These trees represent the critical points from a technical and organizational perspective that slow down the performance of the overall system.

These weak points are then targeted and resolved .

Constraint Analysis - Starting Points

The starting point of the constraint analysis is always a significant and subjectively perceived, or better yet, an objectively measured problem. Some examples are:

Service Level

The Service Level is lower than the targeted service level of 95%.


INVENTORY TURN RATE

Inventory turn rates are too low or there is too much inventory on items with high inventory ranges.

LEAD TIMES

The lead times of in-house production are  higher than required.

SUPPLIERS

The service level of suppliers is too low. The resulting security mechanisms, e.g. safety margins, increase costs.

BOTTLENECK AND MISSING PARTS

Daily shopfloor meetings to prioritize production orders as well as missing parts lists become the leading managing tool.

SCRAP RATE

The quality of manufactured parts has declined, scrap rates and costs are increasing and the ability to plan is decreasing.


Constraint analysis approach

  1. 1
    Capturing the value stream
    A constraint analysis of supply chain processes starts with capturing the value stream. This step creates transparency and is often an essential tool for external project staff as well as for internal staff to understand the overall context.
  2. 2
    Workshops and interviews
    In workshops and interviews with the involved departments, parts of the main cause-and-effect network are identified. The interviews make it possible to examine certain causes and their effects from different departmental perspectives. If necessary, analyses and simulations can be used to prove or disprove correlations or to investigate their impact.
  3. 3
    Cause-and-effect network
    Out of the previously established parts, the whole cause-and-effect network is developed until the root causes are reached.  
  4. 4
    Eliminate root causes
    The last step is to define levers suitable for eliminating the root causes. These levers must then be grouped and ordered by priority.

WHITE PAPER 

Efficiency analysis and improvement of supply chain processes by constraint analysis

HISTORY

The constraint analysis is an element of the Theory of Constraints developed by the American-Israeli physicist Eliyahu Goldratt (1947 - 2011). The Theory of Constraints became known through his bestseller book 'The Goal'.

BACKGROUND

The Theory of Constraints says that a managable system grows until one of its parts as constrained. If this constraint is found and eliminated, the system again grows until the next part reaches a constraint.

USE CASE

In the gearbox production of a large automotive supplier, Abels & Kemmner consultants succeeded in increasing the production throughput by 10% by means of a constraint analysis without having to invest in capacity expansions.

Experienced supply chain engineers analyze, evaluate, and optimize

Abels & Kemmner has had the best experience with constraint analysis of supply chain processes for many years. Our experienced consultants ensure the quality of the analyses and concepts. Of course, we are also ready to implement the results in practice. The effectiveness of the defined measures is shown in detail in the reality tree, the question of blame and responsibility is nowhere raised, nothing must be hidden or swept under the carpet.

  • Increase of service level
  • Increase of inventory turnrates
  • Reduction of lead times in production
  • Increasing quality and reducing scrap rates
  • Resolving bottlenecks and increasing transparency

Contact


Prof. Dr. Götz-Andreas Kemmner

managing partner

Prof. Dr. Kemmner has carried out well over 150 national and international projects in over 25 years of consulting work in supply chain management and reorganization.

 
In 2012, he was appointed honorary professor for logistics and supply chain management by WHZ.


The results of his projects have already received several awards.

Dr. Bernd Reineke

managing partner

Dr. Reineke graduated in mechanical engineering and was initially responsible for logistics, planning, scheduling, development, and IT in industry for 10 years.


Since then, he has been advising companies with a focus on SCM, production control, IT optimization and inventory management.


The results of his projects have already received several awards.

Dirk Ungerechts

Dirk Ungerechts, MSc.

managing partner

Dirk Ungerechts is responsible for business consulting at A&K Supply Chain Engineers.


He has many years of experience in supply chain management and mathematical optimization.


He specializes in the requirements of quantitative SCM optimization as well as dynamic simulation for agile and intelligent decision making.

Oliver Kayser, BSc.

HEAD of Marketing & Sales

Oliver Kayser advises our interested customers in the decision-making process for agile SCM solutions.


He has many years of experience in advising companies on SCM, APS, business analytics and automation.


He is also responsible for digital topics, online marketing, PR as well as cooperation’s and contracts.

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