FR-02 | Defence Plant
Context: The plant assembles guns for the Client across a 14-step assembly line
running 2 shifts. Monthly output is 6 against a target of 10 despite adding 40 new
workers.
Step Method Application to Defence Plant (FR-02) Prescriptive Goal
1 IDENTIFY Hull Welding is the physical constraint (97% utilization). Client Inspection is a policy constraint. Focus 100% of management attention on the Welding output.
2 EXPLOIT Use general labor to perform prep-work (cleaning/grinding) for certified welders. Maximize "torch time" for the constraint at zero additional cost.
3 SUBORDINATE Stop CNC from over-producing; stop adding workers to idle assembly stations. Ensure the entire line runs only at the pace Welding can handle.
4 ELEVATE Hire more certified welders or invest in robotic welding cells. Increase the physical capacity of the constraint to meet the target of 10.
5 PREVENT INERTIA Once welding is fixed, address the monthly inspection lag to prevent inventory pile-up at dispatch. Ensure the next bottleneck (Client Inspection) is identified and managed.
Q1. Identify ALL constraints visible in this description.
Answer: Physical Constraint (primary): Hull Welding at 97% utilization with a queue of 22
sub-assemblies waiting. This is the production bottleneck. Market Constraint: The Client
inspects and accepts delivery only once per month. With 14 completed guns already in
the dispatch yard, the delivery rate is capped by the Client's inspection cadence
regardless of production improvements. Policy Constraint (hidden): The rule that only
certified welders can staff the hull welding station prevented the 40 new hires from being
placed at the actual bottleneck, making the resource shortage at that station persist
despite hiring.
Q2. Why did adding 40 workers NOT increase output?
Answer: All 40 new workers were deployed at non-constraint stations: 15 to CNC
machining (88% utilization with 12% spare capacity), 12 to final assembly (68%
utilization with 32% spare capacity), and 13 to painting. These stations already had idle
capacity. Non-constraints running faster only increases the rate at which work flows to
the real bottleneck — hull welding — which cannot absorb more input. The constraint
was untouched and remained at 97% utilization. System Throughput is determined
entirely by the constraint, and improving non-constraints does not improve the
constraint.
Q3. Where SHOULD the additional resources have been deployed?
Answer: At hull welding — the actual constraint. The correct approach: use the budget to
hire 2-3 certified welders through ESAB or BIS-certified labour contractors rather than
general workers. For the non-certified hires already on site, deploy them as dedicated
assistants specifically at hull welding to handle all pre-weld material staging, post-weld
grinding, consumable restocking, and NDT documentation. This frees the certified
welders' time for actual welding, typically increasing constraint output by 20-25% at zero
capital cost.
Q4. Name the market constraint hidden in the last observation.
Answer: The Client inspects and accepts delivery once per month. There are already 14
completed guns in the dispatch yard awaiting the next inspection visit. This means that
even if hull welding is resolved completely and production reaches the target of 10 per
month, delivered Throughput will still be limited by the Client's inspection frequency. The
dispatch queue will continue growing unless the Client increases its inspection cadence
— making this a genuine external market constraint that requires client-side negotiation.
Q5. What is your first exploitation action for the hull welding
constraint?
Answer: Pre-stage all hull sub-assemblies fully fitted, cleaned, positioned, and pre-
heated before the certified welder arrives at each workstation. The welder should only
weld — nothing else. All material handling, post-weld visual inspection, grinding of weld
crown, consumable restocking, and documentation completion should be assigned to
dedicated assistants who shadow the certified welders. This ensures 100% of the
certified welder's shift time is spent on welding — the only activity that cannot be done
by an uncertified worker. Estimated gain: 20-25% more constraint output per shift at zero
capital expenditure
Process Stage Utilization Status TOC Logic Constraint Type
CNC Machining 88% Running Fast Over-producing Inventory (I) Non-Constraint
Hull Welding 97% Choked Determines System Throughput (T) Physical / Resource
Avionics Fit 74% Idle (2 hrs) Starved by Welding Non-Constraint
Final Assembly 68% Idle (Techs) Starved by Welding Non-Constraint
Dispatch N/A Backlogged Revenue blocked by Policy Market / Policy