Optimized production technology financial definition of optimized production technology
optimized production technology
Also found in: Acronyms
optimized production technology (OPT) a framework for identifying ‘bottlenecks’ in a PRODUCTION LINE which disrupts (i.e. holds-up) the smooth flow of work: OPT recognises that an hour lost at a bottleneck is an hour lost to the whole system and that bottlenecks govern both throughput and inventory (STOCK) in the system. Bottlenecks set the pace of the process (the ‘beat’ or ‘drum’). Ideally, they must always have work (a ‘buffer’) placed in front of them, and material must be pulled (the ‘rope’) into the process from the bottleneck. Overcoming potential bottlenecks requires careful attention to PRODUCTION-LINE BALANCING needs and the availability of parts and components as and when required (see STOCK CONTROL). See MATERIALS REQUIREMENT MANAGEMENT, MATERIALS FLOW MANAGEMENT.