Creating perfect harmony asq 2011

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TOC, Lean and 6 sigma

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  • 1. Bob MendenhallSenior ConsultantAvraham Y. Goldratt Institute 2008 Avraham Y. Goldratt Institute, LP 1

2. Real Solutions,Real ResultsThrough Interdependency Engineering SM Since 1986, AGI (Goldratt Institute) has enabled organizations to better align theway they operate to achieve strategic bottom line results now and in the future.AGI is the birthplace of constraint-based techniques and solutions forbusiness success. AGI provides its clients with rapid bottom line results through the application ofinterdependency engineering to production, supply chain, project portfoliomanagement, or business unique problems. Our engagement with a client isbased on the SDAIS model.Interdependency Engineering is a service mark and trademark of the Avraham Y. Goldratt Institute, a Limited Partnership 3. 2008 Avraham Y. Goldratt Institute, LP 3 4. Customer demand frequently changes.Parts are not always available when needed.We have absenteeism problems with ourworkforce.The workforce is not well trained and disciplined.Our processes are not always reliable.Our equipment frequently breaks down.Our quality is not consistently good.Data is not readily available and accurate.Our policies dont always make sense. 2008 Avraham Y. Goldratt Institute, LP 4 5. What if these problems did not exist..Customer demand doesnt change.Parts are always available when needed.We dont have any absenteeism problems with ourworkforce.The workforce is excellently trained and disciplined.Our processes are reliable.Our equipment never breaks down.Our quality is superb.Data is readily available and accurate.YOU CAN DECIDE ON WHATEVER POLICIES YOU WANTIF:THEN: Meeting commitments should be a piece of cake. 2008 Avraham Y. Goldratt Institute, LP 5 6. Business and operational strategies and designs are built upon a constraint-basedarchitecture that identifies and configures the key interdependencies of theorganization to achieve stability and improvement. Strategic improvements are implemented and sustained through a focused systemimprovement architecture based on TOCLSS (TOC, Lean & Six Sigma). The deployment framework integrates these two architectures in a holistic modelcalled SDAIS: Strategy-Design-Activate-Improve-Sustain. 7. A management science based on the hard sciences, i.e.,rigorous cause-and-effect TOC views organizations as systems: Made up of different parts, resources, processes, etc That must work interdependently To achieve a common purpose, or goal An organization achieving infinite performance has noconstraint(s) Knowing where an organizations constraint is enablesfocused improvements to maximize overall performance 8. WARNINGDo not allow inertia to become the systems constraint!A Process Of OnGoing ImprovementTheory of Constraints 9. 2008 Avraham Y. Goldratt Institute, LP 11 10. " TOC is the foundational architecture for the System" Establishes Process Control" Achieves Reliable Process Throughput" Provide focus for CSI" LSS is Implemented based on the focus TOCprovides to Improve Process Effectiveness:" Eliminate Waste" Reduce Variation" When the two methodologies are applied togetherDiscord can occur." The Discord must be understood to preventundermining the TOC LSS integrated approach 2006 - 2008 Avraham Y. Goldratt Institute, LP All Rights Reserved 12 11. 13++++TOC Only Unbalanced line. Road Runner work ethic. DBR rope chokes materials. Time based replenishment.LSS Only Balanced line. Workers pace to Takt Time. Kanban signals release materials. Quantity based replenishment.An aligned TOC-LSS approach is the best ContinuousSystem Improvement (CSI) solution.2006 - 2008 Avraham Y. Goldratt Institute, LP All Rights Reserved2006 2008 Dynamics Research Corporation 2006 2008 NOVACES, LLC 12. Unbalanced Line vs. Balanced Line 2008 Avraham Y. Goldratt Institute, LP 14 13. TOC and LSS take different approaches to process flowdesign (Unbalanced Line vs Balanced Line) 2008 Avraham Y. Goldratt Institute, LP 15 14. UnbalancedLineProtective capacity describes the amount of installedcapacity that is necessary to overcome variation.Production Capacity1 part per hourDrumA B C D ECapacity1PartperHour All Resources Work to Road Runner ROE A & B have Protective Capacity to protect Constraint Constraint C has Protective Capacity to Protect itself D & E have Protective Capacity to Protect Customer Goal is to Achieve Throughput in the presence ofDemand & Process Variation Protective Capacity can be used to performInterruptible WorkBalancedLineThe Operators cycle times are loaded to Takt Time.Production Cycle TimeCycle Time1 hour per partTakt Time = 60 Minutes A B C D1HourperPart Operations Improved over time & Balanced toAchieve TAKT Time Surplus Capacity viewed as Waste & Removedfrom System Dedicated Operators Working to TAKT2006 - 2008 Avraham Y. Goldratt Institute, LP All Rights Reserved 162006 2008 Dynamics Research Corporation 2006 2008 NOVACES, LLC 15. UnbalancedLineProtective capacity describes the amount of installed capacitythat is necessary to overcome variation.Production Capacity1 part per hourDrumA B C D ECapacity1PartperHour Emphasis on Reliable Throughput System Throughput Protected from DemandVariation System Throughput Protected from ProcessVariation Well suited for MRO systems which have highvariation in demand, repair time & work content Protective Capacity can be used to performInterruptible Work Manage the ConstraintBalancedLineThe Operators cycle times are loaded to Takt Time.Production Cycle TimeCycle Time1 hour per partTakt Time = 60 Minutes A B C D1HourperPart Works well with steady demand & repeatableworkload Requires consistent demand and repeatablework load over long time period to removevariation Requires operators dedicated to specifictasks. System Vulnerable to Variation Manage All Resources2006 - 2008 Avraham Y. Goldratt Institute, LP All Rights Reserved 172006 2008 Dynamics Research Corporation 2006 2008 NOVACES, LLC 16. Road Runner Ethic vs. Work to Takt 2008 Avraham Y. Goldratt Institute, LP 18 17. TOC and LSS view resource behaviors differently (RoadRunner work culture, Takt Time) 2008 Avraham Y. Goldratt Institute, LP 19 18. Takt Time = 60 Minutes Cycle TimeA B C D1HourperPartProduction Cycle Time1 hour per partRopeA B C D E Work Heads Down on Available Workuntil: Work is complete Work is Blocked Higher Priority Arrives Performance measured against PlanGoals TRR performance Manage the Line by Managing theConstraint Interruptible Work accomplished withouteffecting Throughput Work paced to TAKT Time Workers are Dedicated to Specific Tasks Constraint and management focus can shiftin an unpredictable way between resourcesas the constraint moves.Road RunnerEthic Work to Takt2006 - 2008 Avraham Y. Goldratt Institute, LP All Rights Reserved 202006 2008 Dynamics Research Corporation 2006 2008 NOVACES, LLC 19. RopeRoad RunnerEthicA B C D E Well suited for systems which have highdemand, process time & work contentvariation Road Runner Rules Of Engagementallows other low priority work to beperformedWork to TaktProduction Cycle TimeCycle Time1 hour per partTakt Time = 60 Minutes A B C D1HourperPart Works well with steady demand &repeatable workload Requires consistent demand andrepeatable work load over long time periodto remove variation Requires operators dedicated to specifictasks. Encourages deadline driven behavior. Work expanding to fill time can maskimprovements2006 - 2008 Avraham Y. Goldratt Institute, LP All Rights Reserved 212006 2008 Dynamics Research Corporation 2006 2008 NOVACES, LLC 20. Rope Signal vs. Kanban Signal 2008 Avraham Y. Goldratt Institute, LP 22 21. TOC and LSS take different approaches to the release andmovement of materials (Takt Time, Kanban vs Rope) 2008 Avraham Y. Goldratt Institute, LP 23 22. PullDBR RopeSignalA B C D ERope Produce Signal: Theory of Constraints materials releasemechanism. Minimizes the Work In Process (WIP) inthe system. Most WIP accumulates in front of thedrum, protecting it from starvation. The rope signals what, when and howmuch material is being processed.KanbanSignalA B C D E PullProduce Signal: A system of visual signals that triggers orcontrols material flow. Kanbans synchronize work processes acrossa system. Limits the WIP in the system Kanban cards may contain: What to produce. When to produce. How much to produce. How to transport and to store material.2006 - 2008 Avraham Y. Goldratt Institute, LP All Rights Reserved 242006 2008 Dynamics Research Corporation 2006 2008 NOVACES, LLC 23. PullDBR RopeSignalA B C D ERopeProduce Signal: Linked to real-time customer demand. Works well in repetitive ,maintenance , andjob shop oriented environments. Chokes material release to the system Maintains minimal WIP levels. Material is only released to the system a(time) buffer length ahead of when it mustarrive at the drum. Time-based system.KanbanSignalA B C D E PullProduce Signal: Kanban works well in repetitivemanufacturing environments. Less effective in most maintenance, repairand overhaul and in job shop environments. Typically higher WIP levels in Kanbansystem. Inter-process WIP not available inmaintenance repair and overhaulenvironment.2006 - 2008 Avraham Y. Goldratt Institute, LP All Rights Reserved 252006 2008 Dynamics Research Corporation 2006 2008 NOVACES, LLC 24. Time Based vs. Quantity BasedReplenishment 2008 Avraham Y. Goldratt Institute, LP 26 25. TOC and LSS often take different approaches to thereplenishment and sizing of materials buffers. 2008 Avraham Y. Goldratt Institute, LP 27 26. Top ofBufferReplenishment orderbatch size isvariableReorder amountconsumed duringeach fixed timeReplenishment time is boundedintervalTime BasedReplenishment Less $ invested in inventory while providingconsistent protection of Throuhput. Process performance is more predictable. Focus is managing the flow of parts in time.Quality BasedReplenishmentMinimum ReplenishmentOrder BatchSize is