RE: Estimating Part Number Capacity

["Richard E. Zultner" <Richard@zultner.com>]

I think that there is a simpler, and superior approach to determining
capacity of a complex system: use a systems approach. In particular, the
Theory of Constraints.

In any system, there is one point which limits the performance of the entire
system: the constraint. (Otherwise the system would have unlimited
performance.) The rate at which you can make parts at that point is the
ceiling for the entire system (as presently configured). So it is not
necessary to model the entire system -- just the constraint. And don't
forget to consider the net profit of what you can make on the constraint
when you "optimize" the system!

An enjoyable introduction to a very practical way of doing this is found in:
Goldratt, E. M. and J. Cox (1992). The Goal: A Process of Ongoing
Improvement. Croton-on-Hudson, NY, North River Press.

 Regards, Richard
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