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Gordon
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PDCASWOTTOC Road Map
v.s.
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do the right thingsdo the things right
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!!
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PNEUMONIA
!!
Chest X-ray
?!
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antibiotic
lungs compromised
!
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TOC
Theory Of Constraints
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TOC
TOC Dr. GOLDRATT1980(Thinking Process),GOLDRATTOPT
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TOC 25
TOC25 , , The Race, The Haystack Syndrome
Jonah Program
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TOC &
TOC & -
1975 1985 1990 1995 2000 2005
TOC
Evo
lutio
n ov
er la
st 2
5 ye
ars
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Process of Ongoing Improvement
3.
2.
1.
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1.
UDE
Clouds objective
UDE
Assumption/Injection
2.
3. :
DE
DE
DE
Great Idea
TO
TO
DE
4. :
TO TO
All TOs implemented
IOObsObs
Obs
ObsObs Obs
5. : ?IO
6. :?
UDE
UDE
IO
IO
IO IO
IOIOIO
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What is Theory of Constraints?
1.
2.
3.
4.
5.
1.UDE (EC)2. (CRT)3.(CCC)4.(FRT)5. (NBR)6.(PRT)7.(TrT)8.(S&T)
1. (T): -
2. (I):
3. (OE): 4. (NP) = T OE5.(ROI) = NP/I
1. S-DBR And BM
2.
3.
4.
5.
6. Buy-in
7. Empowerment
8. 1+4x4process
1.
2.
3.
4.
5.
6.
Part 1
Part 2
Part 3
Part 4 TOC
Part 5
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THEORY OF CONSTRAINTSAfter more than 25 years of Development and Evolution
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WIP
WIP
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---
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----
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..
.
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.
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RM FG
17 19 15 18 16
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---/JIT
JIT
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TOC DBR
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TOC: (IDENTIFY the systems constraint): (Decide how to EXPLOIT the systems constraint): (SUBORDINATE everything else to the above decision). : (ELEVATE the systems constraint): , (If in the previous steps a constraint has been broken, GO BACK to step 1) : ()
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What is Theory of Constraints?
1.
2.
3.
4.
5.
1.UDE (EC)2. (CRT)3.(CCC)4.(FRT)5. (NBR)6.(PRT)7.(TrT)8.(S&T)
1. (T): -
2. (I):
3. (OE): 4. (NP) = T OE5.(ROI) = NP/I
1. S-DBR And BM
2.
3.
4.
5.
6. Buy-in
7. Empowerment
8. 1+4x4process
1.
2.
3.
4.
5.
6.
Part 1
Part 2
Part 3
Part 4 TOC
Part 5
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THEORY OF CONSTRAINTSAfter more than 25 years of Development and Evolution
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!()():
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()
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A
C
D
D
B
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A
C
D12
D10
B
Objective
Need Want
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A
C
B
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A
A
A
A
A
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A
C
DA
DA
B
Objective
Need Want
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A
C
B
A
A A A
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A
Csolution
D
D
B
Objective
Need Want
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DDP
WIP
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DDP
DDP
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1/10
WIP
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What is Theory of Constraints?
1.
2.
3.
4.
5.
1.UDE (EC)2. (CRT)3.(CCC)4.(FRT)5. (NBR)6.(PRT)7.(TrT)8.(S&T)
1. (T): -
2. (I):
3. (OE): 4. (NP) = T OE5.(ROI) = NP/I
1. S-DBR And BM
2.
3.
4.
5.
6. Buy-in
7. Empowerment
8. 1+4x4process
1.
2.
3.
4.
5.
6.
Part 1
Part 2
Part 3
Part 4 TOC
Part 5
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THEORY OF CONSTRAINTSAfter more than 25 years of Development and Evolution
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TIOE
TThroughput
I Inventory
OE Operating Expense
TI
OE
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TIOE
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-/-=/
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TDDIDD
TDD=TDD
IDD=IDD
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What is Theory of Constraints?
1.
2.
3.
4.
5.
1.UDE (EC)2. (CRT)3.(CCC)4.(FRT)5. (NBR)6.(PRT)7.(TrT)8.(S&T)
1. (T): -
2. (I):
3. (OE): 4. (NP) = T OE5.(ROI) = NP/I
1. S-DBR And BM
2.
3.
4.
5.
6. Buy-in
7. Empowerment
8. 1+4x4process
1.
2.
3.
4.
5.
6.
Part 1
Part 2
Part 3
Part 4 TOC
Part 5
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THEORY OF CONSTRAINTSAfter more than 25 years of Development and Evolution
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TOC
1. (production and operation management-5FS & DBRS-DBR & BM
2. (finance and measures)3. (project management)4. (distribution & supply chain)5. marketing6. Buy-in and sales7. managing people8. (strategy and tactics)
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What is Theory of Constraints?
1.
2.
3.
4.
5.
1.UDE (EC)2. (CRT)3.(CCC)4.(FRT)5. (NBR)6.(PRT)7.(TrT)8.(S&T)
1. (T): -
2. (I):
3. (OE): 4. (NP) = T OE5.(ROI) = NP/I
1. S-DBR And BM
2.
3.
4.
5.
6. Buy-in
7. Empowerment
8. 1+4x4process
1.
2.
3.
4.
5.
6.
Part 1
Part 2
Part 3
Part 4TOC
Part 5
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THEORY OF CONSTRAINTSAfter more than 25 years of Development and Evolution
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6 N&S questions on Technology
--
--
--
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3. 3. How to cause the change!How to cause the change!
2. 2. To what to change!To what to change!POOGIPOOGI
Process of Ongoing Improvement
1. 1. What to change?What to change?
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TP RoadmapTP RoadmapWhat to Change?
Identifying the ProblemAnalysis
1. Three-Cloud Process: What core conflict is responsible for the UDEs?
UDE
Clouds objective
UDE
Assumption/Injection
2. Current Reality Tree:Is the core conflict reallyreallythe core conflict?
3. Evaporating Cloud: What assumption(s) are we going to challenge?
DE
DE
DE
Great Idea
TO
TO
DE
To What to Change?Constructing the Solution
Strategy
4. Future Reality Tree: Ensures that the starting injection will lead to all the DEswithout creating negative branches.
TO TO
All TOs implemented
IOObsObs
Obs
ObsObs Obs
How to Cause a Change?Designing the Implementation
Tactics 5. PreRequisite Tree: In what order do we implement the T.O.s and what blocks their implementation?IO
Action
Action
6. Transition Trees:What actions must we take to implement the PreRequisite Tree?
UDE
UDE
Core Conflict
IO
IO
IO IO
IOIOIO
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TOC
7065444960
The Would of the Theory of Constraints, Victoria J. Mabin and Steven J. Balderstone,2000
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A B C D E F G
550 140 12000 700 270 250 2500
(US$) 40M 6M 1B 63M 20M 16M 240M
() 2 6 2 1 4 3 7
(US$) 10K 10K 80K 80K 0 45K 80K
Yes Yes Yes Yes Yes No Yes
Lead-time 50% 44% 31% - 67% 50% 17%
(-)
87-99% 60-90% 70-95% 85-98% 65-99% - -100%
20% 20% 9% 114% 25%
20% 40% 20% 17% 50% -
58% 77% 40% 25% - - 53%
25% -
50% 50% -
(US$) (-
)
64K-76K 30K-50K - 83K-90K 31K-67K 56K-64K 82K-92K
Corbett, T. and Csillag, J.M., 2001, Analysis of the Effects of Seven Drum-Buffer-Rope Implementations, Production and Inventory Management Journal, V.42, N.3&4, pp.17-23.
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. . .
. . .
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TOC
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Q & A