Reconnecting The Disconnect Between Strategy, Operations And Finance
Theory of Constraints Strategy Facilitation (under construction)
Lean Enterprise Finance & Measures (under construction)
Theory of Constraints
Drum-Buffer-Rope (DBR) Scheduling
DBR is a "pull" production system that stabilizes production and it is based on scheduling work at the “drum”, which is the single schedule point that controls the throughput of the operation. Buffers are elements of time that are put in place to overcome the variation that cause delays in day to day operations. The act of “tying the rope” restricts the release of work into production until a buffer time before it is required at the drum. This allows the shop floor to operate without departmental schedules and avoids unnecessary costs, overproduction, excess inventory, and delays that contribute to long lead-times and poor due date performance.
Buffer Management
Buffer Management is a control mechanism technique used to monitor material availability at the single point schedule (the drum) and to monitor whether due date performance is being threatened. Production management and support functions use buffer management penetration statistics to prioritize improvement initiatives and to guide daily actions to ensure high throughput and due date performance.
Critical Chain Project Management (CCPM)
Critical Chain Project Management is a method of planning and managing projects that places a high emphasis on the resources required to execute project tasks. This is in contrast to the more traditional Critical Path and PERT methods, which emphasize task order and rigid scheduling. A Critical Chain project network will tend to keep the resources levelly loaded, but will require them to be flexible in their start times and can quickly switch between tasks and task chains to keep the whole project on schedule. Application of CCPM has documented results of achieving projects 10% to 50% faster and/or cheaper than the traditional methods.
Theory of Constraints Thinking Processes
The Thinking Processes are a set of logical "thinking tools", which translate intuition into a format that enables rational discussion, questioning without offense, and modification to reflect a better understanding of the situation. These tools are used to construct common sense solutions to problems as well as to facilitate communication, collaboration, and consensus among those that must be involved in its resolution.
The context of these tools revolves around:
What To Change:
A Situation assessment and a description of the "current reality", which identifies the core problem or conflict, and the assumptions that sustain it
What To Change To:
A Verbalization of the vision or solution with a description of the strategy to attain the desired state
How To Cause The Change:
The detailed plan and tactics that clarify the required actions and the synchronize efforts to implement the strategy
Lean Enterprise
Value Stream Management (VSM)
Value Stream Management the planning process for Synchronous Flow implementation, by linking the performance metrics required by management with Synchronous Flow techniques. Current and future state value streams provide a clear path to implementation ensuring quick deployment and identification of improvement initiatives that create improved financial performance, operational performance, and improved customer value.
5S and Visual Controls
5S is a workplace organization methodology that incorporates the five pillars of the visual workplace; sort, set in order, shine, standardize, and sustain which are often overlooked in continuous improvement initiatives. A powerful front-line tool for simplifying work processes, improving product quality, ensuring safety, and eliminating the need to search for items that lead to lost productivity.
Standard Work
Standard Work standardizes work procedures by effectively combining people, materials, and machines to maintain quality, efficiency, safety, and predictability to maximize performance and minimize waste.
Work flow Analysis and Layout
Work flow analysis and layout reorganize work processes to streamline operations, improve flow, and to improve utilization of floor space. Visual controls are incorporated to promote communication and to give the workers more authority and input into daily decisions.
Quick Changeover
Quick Changeover utilizes the SMED methodology to reduce difficult, time-consuming, and wasteful setup activities. Quick changeover techniques are a powerful tool that allows for process batch size reduction that ultimately reduces lead-time, increases market responsiveness and improves competitiveness.
Kanban
Kanban techniques utilize strategically positioned inventory management in a visually controlled pull production system to produce exact quantities of what is required only when it is consumed by downstream processes or the customer, thus reducing overproduction, and improving response time to customers. Dynamic buffering techniques are used to right size the inventory to provide sufficient protection from starvation, and also not allowing excessive inventory quantities.
Mistake Proofing
Mistake-proofing is a error proofing approach that prevents defects by monitoring processing conditions at the source and correcting errors that cause defects and giving feedback about each product or operation in the process, thus reducing the amount of inspection required.
Total Productive Maintenance (TPM)
TPM is a simple, inexpensive way to immerse your front line workers in the basics of improving equipment overall effectiveness and equipment reliability. The ultimate benefit of TPM is that it improves production quality, lowers uncertainty, and maintenance cost, and improves commitment and morale.
Cellular Flow
Cellular Flow rearranging traditional operational-based factory layouts into process-based cells that promote a smooth production flow. It incorporates all of the synchronous flow building blocks to significantly reduce lead-time and work-in-process inventory, while simultaneously improving customer response time, product quality, customer satisfaction, and profitability.
Kaizen
Kaizen are continuous improvement events that are focused at rapid changes at targeted area within the organization. By getting employees involved in the change process, employees gain buy-in and promote team work through team building techniques.
Quality Systems
Total Quality Management (TQM)
Total Quality Management is a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.
PDCA Improvement Cycle
PDCA Improvement Cycle is a process improvement methodology that records the current process situation and identifies how the process can be improved through factual decision making. Initiates improvement actions, measures the results of the actions, standardizes the improvement, and establishes the plan for further action.
Histogram
A shown frequency distribution for a set of data or measurements; which indicates the performance profile of a process. It allows a comparison of process performance against customer requirements, engineering specifications, and before and after improvement activities.
Pareto Analysis
Pareto Analysis is a bar chart, which ranks problems or causes of problems in descending order. Ranking them in descending order it provides a systematic way to assign priorities to the most important problems. Focusing on the vital issues and identifying the root cause can produce significant results in a relatively short period.
Flowchart
Flow-charting is a technique that visualizes the actual flow or sequence of events in a process that any product or service follows. It identifies critical points in a process where teams can attack problem areas, bottlenecks, or instances where non-value-added activities are performed.
Cause and Effect Diagram
A method that helps identify, explore, and display increasing detail of all possible causes related to a problem or condition in order to discover the root cause. Encourages novel ways of solving problems by creatively grouping ideas with data collection and analysis in the problem solving process.
Scatter Diagram
A chart that identifies and studies possible relationships between observed changes in two sets of variables. Scatter diagrams provide both graphical and statistical means to test the hypothesis and strength of the relationship of a suspected root cause and the original problem.
Run Chart
A tool to help study observed data for trends or patterns over a specified period by comparing a performance measure before and after a process change is made. By providing process data over time, the need for corrective action can be identified before the process goes out of specification.
Statistical Process Control
An approach that prevents defects by monitoring processing conditions at the source and identifying out of control conditions that causes defects. Feedback is given about each product or operation in the process, thus reducing the amount of inspection required.
Mistake Proofing
Mistake Proofing is an approach that focuses on achieving zero defects. It is based on the principal that defects are prevented by controlling the performance of a process in order to eliminate defects, even when a mistake is made by a machine or person.
SPIN is a methodical approach used in major account sales that focus on bringing to light the significance of your solution to the prospect (or customer). At the heart of the process is presenting the solution only after the prospect fully understands the seriousness of their problem(s). The tactic used to facilitate this approach is asking a series of questions that are described as Situation Questions, Problem Questions, Implication Questions and Need-Payoff Questions; and then listening for the solutions.
Situation Questions
These questions are used to gather the facts pertaining to the prospect’s situation, and provide the context in order to zoom in on the details.
Problem Questions
These questions are used to “uncover” the pain experienced by the prospect and are the first step to understanding how you might actually help the prospect.
Implication Questions
These questions are very important. The goal is to get them to “feel” the pain and seriousness derived from the problem, to include their implications on their business.
Need-Payoff Questions
The final set of questions reveal how the product or services offered can add real benefit. These questions tie it all together so your solution makes sense to your prospect and they are ready to buy.
