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TOC PA
Moscow
May 2012
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Roy Stratton
Roy Stratton is based in the UK and is Principal Lecturer
in Operations and Supply Chain Management at
Nottingham Business School, Nottingham Trent
University where he is actively involved teaching,
research and consultancy. He is Director of the Centre
for Performance Management and Lean Leadership and
Programme Manager of the MSc Theory of Constraints
(Health Care Management). Previously Roy worked for
Rolls Royce Aero Engines in an internal consultancy role
and has since been actively involved in a wide range of
industry-based and government funded knowledge
transfer research projects. He has published widely in
both professional and academic journals and has coauthored two educational books.
Roy is a chartered Engineeer (MIMech E) and has been awarded a BSc in
Mechanical Engineering (Nottingham), an MSc in Manufacturing System
Engineering (Warwick), and a PhD in Supply Chain Management (Nottingham
Trent).
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Approach TheoryPhilosophy?
Attribute
Lean
TOC
Process
steps
Define
Measure
Analyse
Improve
Control
Identify value
Map value stream
Flow
Pull
Perfection
Identify constraint
Exploit
Subordinate
Elevate
Go back
Origins
Shewhart
Western
Electric
1920s
Ohno
Toyota
1950s
Goldratt
Creative Output
1980s
Emphasis
Reduce
Defects
Reduce Waste
Manage Constraints
Perspective
Processes
Supply Chain
Wider system
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Lean
TOC
Environment
All processes
Inherently
stable flow
Complex flow
Key word
Variation
Flow
Focus
Key
assumption
Batching drives
Process variation
drives the cost vs. buffering and
waste
quality trade-off
Buffers need to be
strategically
managed
Distinguishing
Methodology
Plan, Do,
Study, Act
Value stream
mapping
Process flow
Management Rules
Distinguishing
improvement
concept/tool
Statistical
Process
Control
Kanban control
Buffer management
Application
sequence?
1
5
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From the
to The Goal
Theintroduction
Viable Vision
Finally, and most importantly, I wanted to show that we can all be outstanding
scientists. The secret of being a good scientist, I believe, lies not in our brain
power. We have enough. We simply need to look at reality and think logically
and precisely about what we see. The key ingredient is to have the courage to
face inconsistencies between what we see and deduce and the way things
are done. This challenging of basic assumptions is essential to breakthroughs.
Almost everyone who has worked in a plant is at least uneasy about the use
of cost accounting efficiencies to control our actions. Yet few have challenged
this sacred cow directly. Progress in understanding requires that we challenge
basic assumptions about how the world is and why it is that way. If we can
better understand our world and the principles that govern it, I suspect all our
lives will be better.
Dr. Eliyahu Goldratt 1984
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Scientific Method
Contribution
Experiments to test
prediction
Shewhart
Process control
PDSA Cycle
Ohno
Process mapping
Broad incremental improvement
Goldratt
Focused causal mapping
Core problem identification
Challenging assumptions (clouds)
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Total cost
Cost
Inventory holding cost
Set-up cost
Batch size
Economic Batch Quantity
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Batch size
reduction
Ideas for
controlling
defects
JIT
production
Deliberate
withdrawal of buffer
Inventories/workers
(E)
Fast feedback
on defects
(B)
Scrap/quality
control
(H)
Reduced buffer
Inventories &/or
workers
(G)
Smoother
output rates
(I)
(A)
Less
Inventory in
the system
inventory control
Fewer rework
Labour hours
(D)
Less material
waste
Less material, labour and indirect inputs for the same or higher output= higher productivity
Less inventory in the system=faster market response, better forecasting and less administration.
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Set-up cost
Batch / Order Size
Continuous Improvement
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Total cost
Carrying cost
Set-up cost
EOQ
Need
Objective
Save set-up
cost per part
Batch size
Action
Enlarge the
batch size
Save total
cost per unit
Save carrying cost
per unit
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Enlarge the
batch size
Save carrying
cost per unit
Reduce the
batch size
Save
cost-per-part
False objective
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Action
Dont turn a
non-bottleneck into
a bottleneck
Enlarge the
batch size
Reduce production
lead time
Reduce the
batch size
Objective
Run production
effectively
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B
Control cost.
D
Judge
according to
local impact.
C
Protect
throughput.
D'
Do not judge
according to
local impact.
A
Manage well.
Because...
Local impact
IS NOT EQUAL TO
impact on the organization.
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(Goldratt, 2008;p19)
Insufficient
Reaction
time
Jambs,
missed
priorities
Work in progress
20
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Material
Release
time
DD
Manufacturing lead time (MLT)
DBR
Buffer is aggregated: No intermediate due dates
(Assumes touch time is insignificant <10%)
Buffer
DD
Material
Release
Rope = MLT
time
Drum
25
Touch time:
Buffer:
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Red
Yellow
Green
Probability to
finish
Time
26
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Critical Chain
5(D)
5(D) FB
2(B)
2(B)
4(C)
1(A) 3(B)
1(A)
4(C)
PB
Time
3(B)
Critical path
FB: Feeding Buffer
PB: Project Buffer
Resources: A,B,C,D
28
Touch time:
Buffer:
Mixed:
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+3 standard
deviations
95.4% of points
+2 standard
deviations
+1 standard
deviation
Frequency
1 standard
deviation
68% of points
A standard
deviation
=
sigma
40
100
Elapsed time of call (seconds)
160
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3
2
Action limit
Warning limit
Measure
Of
Quality 1
2
3
Warning limit
Action limit
Time
Statistical Process Control Chart
35
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Shewhart Cycle
Define
Plan
Do
Control
Act
Outline:
Study
Improve
Measure
Analyze
http://www.youtube.com/watch?v=xzAp6ZV5ml4
Detail: http://www.youtube.com/watch?v=QgmtXRoVVc0&feature=related
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01
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200.0
180.0
160.0
100.0
Data
140.0
120.0
Target
80.0
60.0
40.0
20.0
0.0
Date
graph average
graph UCL
graph LCL
37
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Red
Yellow
Green
Probability
to finish
Time
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Drum
patient arrival
4 Functions of BM
Prioritise patients; Expedite in red zone; Escalate instability; Target
causes of delay.
39
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Kanban illustration
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Kanban functions/rules
Fu nctio ns of k an ban
K a nb an ru les o f u se
2. Provides production
inform ati on.
The functi ons and rul es of kanban (sourc e: O hno, 1988: 30)
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Kanban Functions
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TBM assumes:
Level scheduling
Continual improvement is
encouraged through reducing
inventory to expose problems
that are then targeted.
Continual improvement is
enabled by targeting the causes
of delay (e.g. red zone
penetration) then reducing the
buffer.
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Conclusion
Attribute
Lean
TOC
Environment
All processes
Inherently
stable flow
Complex flow
Key word
Variation
Flow
Focus
Key
assumption
Batching drives
Process variation
drives the cost vs. buffering and
waste
quality trade-off
Buffers need to be
strategically
managed
Distinguishing
Methodology
Plan, Do,
Study, Act
Value stream
mapping
Process flow
Management Rules
Distinguishing
improvement
concept/tool
Statistical
Process
Control
Kanban control
Buffer management
Application
sequence?
50
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Questions
01 July 2012
51