TCM, Article Review Example

The three main objectives of any manufacturing company is to achieve a flexible manufacturing system that also ensures cost minimization as well as highest quality standards. But production efficiency is not possible without effective capacity management which is why Total Capacity Management (TCM), a planning tool, takes a comprehensive approach to understanding company’s operations. There are four major principles in TCM which are understanding all aspects of operations including machines, operators, and sequencing rules, basing logistics plans on accurate need dates, encouraging  continuous improvement, and recognizing the interdependence of engineering, planning, and operations (Wortman).

There are total six functions that together form the TCM architecture. The first is capacity design which ensures that the company has adequate manufacturing and human capital to meet long-term objectives. Next is continuous capacity improvement which requires constantly seeking ways to improve operations. Third is capacity scheduling which involves making sure that the company can meet expected and unexpected consumers’ demands without disrupting normal operation. The fourth is logistics scheduling which involves creating an efficient time and date schedule for delivery activities. The fifth function is production scheduling which involves creating a workable and efficient plan for production activities. The last function is schedule adjustment which involves modifying near-term production schedule as new information is received (Wortman).

TCM helps organizations achieve competitive advantage through better understanding of manufacturing capacity as well as resulting operating efficiency. The companies improve their operations because they try to anticipate consumer needs, eliminate non value-adding activities, improve quality due to more flexible manufacturing systems, reduce cost through more efficient inventory management, and improve employees’ morale through greater certainty (Wortman).

Reference

Wortman, David B. “Managing Capacity: Getting The Most From Your Company’s Assets.” Industrial Engineer February 1992: 47-49.