Recall that the theory of constraints implementation process is broken into 5 components:
- Consensus Building
- Assessment
- Design
- Implementation Planning
- Project Management
The initial stage of the implementation is walking through the 5 focusing steps of the Theory of Constraints:
- IDENTIFY the system's constraint
- Decide how to EXPLOIT the system's constraint
- SUBORDINATE everything else to the prior decisions
- If the constraint has not been broken, ELEVATE the system's constraint
- GO BACK TO STEP ONE, but do not allow inertia to become the constraint
By following this process, you'll be painting the picture of the business after your Theory of Constraints project is completed. However, since you'll always have a constraint, the process never "completes". Thus, your theory of constraints implementation will never be finished.
To identify the constraint, first chart the order fulfillment process. During this process of interviews and analysis, look at what is being done at each step. But that is only a means to an end. The real goal is to find out why things are done. Since 90% of constraints are policies, you have to know the why before you can address the how. Therefore, the implementation will include a detailed analysis of the current processes.
The main reason organizations don't realize maximum output from their system is that planning and execution behavior is not aligned with the global purpose of the organization. There are two behaviors that account for this misalignment. They are:
- Over-production; Making more than the customer (or the next step) requires. Usually manifested as batching behaviors and
- Releasing work too early into the system (allowing overproduction); resulting in high work in process inventory.
These two deeply embedded behaviors are the result of management's beliefs about the proper way to deploy resources to the work. There are countless policies, procedures and measurements that reinforce the erroneous idea that in order to manage well means to keep workers and/or machines producing as much as possible, as fast as possible. We have been taught that idle resources are major waste. Those that have implemented Theory of Constraints (and Lean) realize this thinking is fundamentally flawed.
A big part of the assessment is to discover how these beliefs are entrenched in the policies and procedures of the organization. The easiest way to find those is to map the process flows of order fulfillment and order planning.
Staple yourself to an order and work through the order fulfillment process from order acquisition to shipping. Diagram the results. Determine how long things take. At the conclusion of this step, you should have a flowchart that shows how orders are processed, by whom, and how long each step takes.
As you walk through the order fulfillment process, you'll get an idea of the main things to change; make a list. You'll use this list to create the detailed implementation plan.
IDENTIFY the system's constraint
The easiest way to identify the constraint is to look for the piles of work in process. The resources with the biggest backlogs are the natural candidates for the constraint. If you're looking at an administrative task, you may have piles of paper. The key question to ask is: "How long will it take you to complete all the work you have at this moment?"
Think globally about this as well. Do you have a backlog of past due customer orders? The constraint is undoubtedly inside the four walls of the business. Is the plant idle? What are the upstream resources doing? Are there a lot of orders to process through engineering that are blocking the plant?
Decide how to EXPLOIT the system's constraint
Exploitation just means not wasting the constraint. In every implementation, the constraint is not known at first, so the concept of maximizing its output is also unknown. Take note of wasted time - waiting for parts, waiting for information, searching. All of this is to be considered in evaluating your system.
SUBORDINATE everything else to the prior decisions
Subordination is another way of saying synchronization. It the constraint is able to produce 10 units an hour, the entire system should be producing 10 units per hour. The concept of synchronization and subordination are also unknown at the beginning of the implementation, so you'll be looking for ways to establish synchronization mechanisms (the easiest is controlling the release of work into the system).
The result of your assessment is a clear idea of the constraint, what mechanisms will be needed to exploit it, and the synchronization points. You'll know where to focus to get the bottom line results you want.
Mark_Woeppel
0 comments:
Post a Comment