Production Planning for Woks to Maximize Capacity using the Theory of Constraints Approach (Case Study in CV SP Alumunium)
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CV SP Alumunium is a small and medium-sized aluminum casting industry that produces aluminum-based frying pans using a make-to-order system. Based on data from the period of March–June 2025, the company was unable to fulfill the entire demand of 323,336 units due to a capacity imbalance between work stations. The casting work station, finishing 1-Grinding, and finishing 2-Turning produced capacity requirement values that exceeded the capacity available. This research aims to determine the best improvement alternative to increase production capacity so that the demand for super frying pans and aluminum frying pans can be optimally fulfilled using the Theory of Constraints approach. Bottleneck identification was carried out by comparing the capacity available and capacity requirement at each work station based on standard time obtained through 30 stopwatch observations. Evaluation was conducted on three capacity improvement alternatives, namely the addition of labor and machines, overtime, and subcontracting. The research results show that the finishing 2-Turning work station is the most dominant constraint with the highest bottleneck frequency and the highest CR/CA ratio of 166.02% in April. The best recommended alternative is the combination of overtime and subcontracting with a total margin of Rp3,767,282,311. The combined alternative generated a higher margin compared to the overtime alternative of Rp3,638,566,758 and the subcontracting alternative of Rp3,070,417,980. The combined alternative was able to fulfill the entire demand during the bottleneck period without leaving a capacity deficit that would cause a loss of margin.
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