Understanding The Goal

The best-seller by Eli Goldratt and Jeff Cox
Hugh E. Cole Managing Par tner Avraham Y. Goldratt Institute, LP
Understanding THE GOAL:
ASEM Member Benefit www.asem.org/

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.
HOUSEKEEPING
! Presentation will last 45 minutes ! There will be time at the end for questions ! Save all questions until the end ! Please turn your phone on mute
! Over 3 Million copies sold ! Translated into more than 21 languages
3
Alex Rogo To ask, inquire!
Jonah Seeks truth!
UniCo
Meeting with the boss (Bill Peach)! ! ! ! ! ! ! Late orders High cost Low efficiencies Two rounds of layoffs 20% cutback Plant is losing money!
Alex Rogo
You have 3 MONTHS!!
Something is wrong! ! ! ! ! ! Technology Computers Good people All materials needed Have a market!
Alex Rogo
Why cant we make money?
Alex Rogo
Jonah
Chance meeting at the airport!

Robots -> Productivity Improvement -> What is productivity? Not equations! -> Can only be measured in terms of your Goal! So!what is the Goal of your manufacturing organization?
Hint: There is only one Goal, no matter what the company
What is the Goal? What do we try to do? ! Produce products as efficiently as we can ! Buy raw materials in the most cost-effective manner ! Be a good employer ! Produce quality products ! Produce quality products efficiently ! Stay on the leading edge of technology ! Meet sales requirements
Alex Rogo
! MAKE MONEY!
UniCo
Actually make more money today and in the future!

Why is that important to know?
! It enables us to answer the question what is productivity?
Alex Rogo
! An action that moves us toward making money is productive. ! An action that takes us away from making money is non-productive.
But how to measure? There is no shortage of measurements! ! ! ! ! Hours worked vs. hours paid to work! Output per hour compared to standard! Cost of products! Direct labor variances!
Problem: !they dont tell me if I made money!
1.! Throughput (T) 2.! Investment (I) 3.! Operating Expense (OE)
Inventory ($I) $Operating Expense ($OE)
Jonah Throughput (T)
System Investment ($I)
$Budget
Measurements??
1.! Throughput (T) 2.! Investment (I) 3.! Operating Expense (OE)
Inventory ($I) $Operating Expense ($OE)
Jonah Throughput (T)
System Investment ($I)
$Budget
Throughput = Sales - TVC Net Profit = T - OE
Alex Rogo Breakfast meeting!
Jonah
Alex: Lets talk about my Robots! Jonah: Forget about the Robots - youve got much more fundamental things to concern yourself with. Alex: But what about my efficiencies? Jonah: Most of the time your struggle for high efficiencies is taking you in the opposite direction of your Goal!
Two phenomena are found in every plant!
1.! Dependent Events 2.! Statistical Fluctuations
1. Dependent Events
Raw Material
! C cannot accomplish more than what B provides to it. ! B cannot work until it receives parts from A. ! A cannot do its job until it receives Raw Material.
2. Statistical Fluctuations
The output of any resource fluctuates over time.
15
Units
10 5
or
10
Time
Probability Distribution
On average, this resource will produce 10 units per hour On average, this resource will deliver in 10 hours On average, this customer will require 10 units per day
Combine Dependent Events! !with Statistical Fluctuations
Raw Material
15 10 5
A
15 10
B
15 10 5
C
15 10 5
D
15 10 5
E
15 10 5
F
or
5
or
or
or
or
or
10
10
10
10
10
10
Jonah: Alex, call me when you can tell me what the combination of the two phenomena mean to your plant.
Boy Scout Hike

Herbie
FG
Work-in-Process
Raw Material
Spreading troops mean high inventory. Closely packed troops mean lower inventory. How can we prevent the troops from spreading without losing speed/throughput?
What did Alex do?

Herbie
Put Herbie in the lead. Made sure that those behind could close any gaps.
But the troops became frustrated because it was too slow!

What did Alex do next?

Herbie
What did Alex do next?

Herbie
Lightened Herbies load to enable him to speed up. Made sure that those behind could close any gaps.
What did Alex learn about Statistical Fluctuations and Dependent Events?
The maximum deviation of a preceding operation will become the starting point of a subsequent operation.
UniCo
How could Alex apply this learning to UniCo?
Alexs system (Big Picture)

FG Inventory
UniCo
Raw Materials
Conversion (Production)
Discreet Orders
The Goal: Make more money now and in the future. The Metrics: Throughput, Investment, Operating Expense But how does the system achieve the Goal? (Details!)
How Alexs System achieves its Goal

(Details!)
Resources / Routing / BOM

FG Inventory
Raw Materials
Orders
Material Release
Flow
What you have to do next, Alex, is to distinguish between two types of resources in your plant. One type is what I call a bottleneck resource. The other is, very simply, a non-bottleneck resource.
FG Inventory
Raw Materials
Orders
Bottleneck: Any resource whose capacity is equal to or less than the demand placed on it. Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.
FG Inventory
NCX-10
Raw Materials
Orders
NCX-10
Raw Materials
HeatFG Treat
Inventory
Orders
Yes, it is possible to have two bottlenecks, but first make sure they are really bottlenecks.
NCX-10
Raw Materials
HeatFG Treat
Inventory
Orders
Yes, it is possible to have two bottlenecks, but first make sure they are really bottlenecks. In the case of the furnaces, they were bottlenecks because of the way they were operated - and Alex learned that they did not need to heat treat some parts that they processed.
NCX-10
Raw Materials
HeatFG Treat
Inventory
Orders
Yes, it is possible to have two bottlenecks, but first make sure they are really bottlenecks. In the case of the furnaces, they were bottlenecks because of the way they were operated - and Alex learned that they did not need to heat treat some parts that they processed.
FG Inventory
NCX-10
Raw Materials
Orders
Applying the Boy Scout Hike to UniCo
Unlike the Boy Scout hike, Alexs slowest resource was not first in line! So he had to take another approach!
Applying the Boy Scout Hike to UniCo
FG
Work-in-Process
Raw Material
Alex tied a rope from the first operation to the constraining operation, limiting the distance (time) between them, and limiting the work-in-process. He also exploited the use of Herbie by changing certain policies.
In the plant, the tied Ropes looked like this.

They controlled entry points for material release of routings that led to the NCX-10. The ropes effectively choked off release of materials to the rate and quantity required by the NCX-10 to make demands for both inventory and discreet orders. Resources / Routing / BOM
FG Inventory
NCX-10
Raw Materials
Orders
He also changed work rules for breaks, QA, and maintenance.

Operating in this manner! ! WIP decreased ! FG inventory decreased ! Lead time decreased ! Due date performance improved ! Operating Expense Decreased ! Plant began making money!
FG Inventory
NCX-10
Raw Materials
Orders
He also changed work rules for breaks, QA, and maintenance.

Until the CONSTRAINT moved to!
The MARKET!
At which time Alex used his new-found capacity and decreased lead-time to acquire significantly more business!
FG Inventory
NCX-10
Raw Materials
Orders
Alex followed what is known as the Five Focusing Steps of TOC!

The Five Focusing Steps of TOC

1.! Identify the systems constraint(s). 2.! Decide how to Exploit the systems constraint(s). 3.! Subordinate/Synchronize everything else to the above decision. 4.! Elevate the systems constraint(s). 5.! If in the previous steps a constraint has been broken, go back to Step 1. WARNING
Do not allow inertia to become the systems constraint!
QUESTIONS?
Hugh E. Cole AGI-Goldratt Institute hugh.cole@goldratt.com www.goldratt.com

Understanding The Goal

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Understanding The Goal

Caricato da

Copyright:

Formati disponibili

The best-seller by Eli Goldratt and Jeff Cox

Hugh E. Cole Managing Par tner Avraham Y. Goldratt Institute, LP

Understanding THE GOAL:

ASEM Member Benefit www.asem.org/

! Over 3 Million copies sold ! Translated into more than 21 languages

Alex Rogo To ask, inquire!

Jonah Seeks truth!

You have 3 MONTHS!!

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Why cant we make money?

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Chance meeting at the airport!

Actually make more money today and in the future!

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Problem: !they dont tell me if I made money!

Inventory ($I) $Operating Expense ($OE)

Jonah Throughput (T)

System Investment ($I)

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Inventory ($I) $Operating Expense ($OE)

Jonah Throughput (T)

System Investment ($I)

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Throughput = Sales - TVC Net Profit = T - OE

Alex Rogo Breakfast meeting!

Two phenomena are found in every plant!

1.! Dependent Events 2.! Statistical Fluctuations

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Combine Dependent Events! !with Statistical Fluctuations

Boy Scout Hike

What did Alex do?

But the troops became frustrated because it was too slow!

What did Alex do next?

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

What did Alex do next?

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

How could Alex apply this learning to UniCo?

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Alexs system (Big Picture)

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

How Alexs System achieves its Goal

Resources / Routing / BOM

Resources / Routing / BOM

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Applying the Boy Scout Hike to UniCo

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Applying the Boy Scout Hike to UniCo

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

In the plant, the tied Ropes looked like this.

He also changed work rules for breaks, QA, and maintenance.

He also changed work rules for breaks, QA, and maintenance.

Until the CONSTRAINT moved to!

Alex followed what is known as the Five Focusing Steps of TOC!

The Five Focusing Steps of TOC

Copyright 1995-2013. Avraham Y. Goldratt Institute, LP. All Rights Reserved.

Potrebbero piacerti anche