Drum-Buffer-Rope (DBR) a Competitive Strategy to Solve Problems of a Small and Medium Enterprise (SME) – A Case Study

Abstract

Small and Medium Enterprises (SMEs) always face internal and external challenges. In the product market, there is an intense competition among SMEs and the bargaining power of the Original Equipment Manufacturer (OEM) is very high. SMEs have limited ability to sustain an unused capacity (over capacity), limited capability to invest, lack of systematic decision making, lack of planning and management deficiency. In order to get competitive advantage, they have to reengineer and redesign themselves. With the advent of technology in manufacturing, the quality and prices of the products are more of hygiene factors for an OEM and only one differentiator from its viewpoint is the due date performance of the SMEs. The objective of this paper is to improve sales and profit of a SME through better due date performance by synchronizing operations and material flows and making better decision on the shop floor. This paper also shows how Drum-Buffer-Rope (DBR) approach of theory of constraints (TOC) acts as a competitive strategy to the SME in solving its varied problems in order to compete and lead in the product market. We conclude the paper by acknowledging a few shortcomings of the paper and discussing some future plans.