8 - emanuele_strada_23 tocpa_usa_21-22 march 2016 v8a

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    23rd International Conference of the

    TOC Practitioners Alliance - TOCPA

    www.tocpractice.com 21-22 March, 201, Tennessee, !"A

    "harin# e$perience on step 2

    %ecide how to e$ploit the s&stem's constraint

    Emanuele Strada

    Thinking-Solutons, Italy

    March, 2016

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    23rd International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com

    Your logo

    Emanuele Strada

    Emanuele Strada is a thought leader on business

    process transformation at Thinking Solutions. He is an

    expert in supply chain re-engineering and dynamicprocess modelling with over 20 years’ experience. He

    has worked for some of the top manufacturing

    companies in the world - setting corporate strategy,

    holding various senior positions with a focus on re-

    engineering and creating systems and structures todeliver substantial improvements in companies.

    Emanuele is a well-respected expert in leading

    business change. He has proven capabilities in

    managing complex turnaround projects at an

    international level and has earned many awards forthem.   [email protected]

    Place for the photo of the

    presenter

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    Your logo

    Agenda

    • the challenge• customer expectations

    • gap analysis

    • key learning

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    Your logoThe customer expectations

    • !!" up#to#schedule shipping performance

    •$ero off#lines or production losses due to supplier failure

    • !!" %uality parts& 'ero shipping discrepancies

    • (anufacturing fle)ibility for une)pected plant

    shortagesre%uirements

    • +rror#proof processes

    • aily shipments• -ccurate pac.aging and e)ecution

    • +lectronic communication capability and e)ecution

    • -dvance problem notification and %uic. resolution

    • Internal training procedureprocess

    • /o supplier constraints• …

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    23rd International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com

    Your logoAt least the “what” is clear…

    …today, the process performance

    is far below the e)pectations

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    23rd International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com

    Your logo…a step back: gap analysis

    0asting1ps

    (illing1ps

    01/234-I/3

    cont5line

    ownstream1ps 6

    istribution

    07231(+4

    1ps

    1. IDENTIFY the system's constraint(s).

    2. Decide how to EXPLOIT the system's constraint(s).3. SUBORDINATE everything else to the above decision.

    4. ELEVATE the system's constraint(s).

    5. WARNING!!!! If in the previous steps a constraint has been broken, go back to step 1, but do not

    allow INERTIA to cause a system's constraint

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    23rd International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com

    Your logoFrom S!s to "oils

    0ustomer production Plan

    81(

    297s re%uirement

    0oils re%uirement

    0oil

    01/234-I/3

    emand

    I/P73

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    Your logo#es… $!T

    0asting1ps

    (illing1ps

    01/234-I/3

    cont5line

    ownstream1ps 6

    istribution

    07231(+4

    1ps

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    0oils re%uirement

    From S!s to %other "oil

    297 !!! 297 n297 !!!: 297 m

    0ustomer production Plan

    81(

    297s re%uirement

    (arriage logic

    *;irst challenge< I/P73 7/I32 = the 01/234-I/3

    0oil

    01/234-I/3

    emand

    I/P73

    (other

    0oil

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    Your logo

    0asting1ps

    (illing1ps

    01/234-I/3

    cont5line

    ownstream1ps 6

    istribution

    07231(+4

    1ps

    0oils

    &'(!T !'&T o) the "*'ST+A&'T

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    Your logo

    0asting1ps

    (illing1ps

    01/234-I/3

    cont5line

    ownstream1ps 6

    istribution

    07231(+4

    1ps

    (other

    0oils

    &'(!T !'&T o) the "*'ST+A&'T

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    Your logoThe challenge ,-

    (other 0oil >

    ? 297

    ? 297 :

    ? 297 n

    (other 0oil Y

    ? 297 a

    ? 297 b

    ? 297 '

    (other 0oil $

    ? 297 @

    ? 297 9

    (arriage logic

    :

    *2econd challenge<

    (other 0oils

    2e%uencing = the01/234-I/3

    Atechnical limitations

    6 real downstream /13

    e%uali'ed needed %uantityB

    *

    *

    01/34-I/3

    input

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    Your logoThe challenge ,.

    (other 0oil >

    ? 297

    ? 297 :

    ? 297 n

    (other 0oil Y

    ? 297 a

    ? 297 b

    ? 297 '

    (other 0oil $

    ? 297 @

    ? 297 9

    (arriage logic

    *

    *

    **

    **

    **

    **3hird challenge<

    Potential different ;Cs

    %uantity and 297s type

    due to different

    customerproduction plan

    D

    E (io of vehicles year 6 E!! 297s per vehicle

    :

    *2econd challenge<

    (other 0oils

    2e%uencing = the01/234-I/3

    Atechnical limitations

    6 real downstream /13

    e%uali'ed needed %uantityB

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    Your logo

    0asting1ps

    (illing1ps

    01/234-I/3

    cont5line

    ownstream1ps 6

    istribution

    07231(+4

    1ps

    (other

    0oils

    &'(!T !'&T o) the "*'ST+A&'T

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    Your logo

    01/234-I/3

    cont5line

    Input 1utput

    ummy

    0oil F

    2everal 0oil types<• -lloy

    • 3emper

    • 3hic.ness

    • Gidth

    • pre#treatment• etc…

    Y+2

    • 204-P

    • 0-P-0I3Y H123

    /ocal optimal and constraint

    /1

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    01/234-I/3

    cont5line

    Input 1utput

    ummy

    0oil F

    /1

    2everal 0oil types<• -lloy

    • 3emper

    • 3hic.ness

    • Gidth

    • pre#treatment• etc…

    /ocal optimal and constraint

    -re we really e)ploitingthe constraint F

    Y+2

    4e%uested

    0oil F

    • /1/ P41703I+

    0-P-0I3Y

    /1

    4+-H 3J417CJP73

    Y+2Y+2

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    as& +estions/

    • Jow to e)ploit the constraint F

    • Jow to prove robustness of the solution…

    • Jow to reduce the ris. of implementation

    failure F

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    as& +estions/

    • Ghat is the batch si'e logicF• Jow many 297s should we consider in our

    marriage logicF

    • Ghat is the “best” 297s se%uence to

    consider, not for local optimal, but for the

    entire system F

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    The )est se+ence

    • Ghat is “best” F

    • Jow can we describe it F

    • Ideally every single coil that need to be producedshould be part of this definition, and every single

    coil that is not needed for the production plan of

    the customer in a short term, should not be

    considered5

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    The )est se+ence

    • Is it correctF

    • 1., but… what about the technical limitations

    by which the dummy coil is neededF

    • …and what does it mean “short term”F

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    Your logo0ere we are… the F/*1 2

    Hoo.ing forward

    /ormal ArightB flow speed

    /ormal flow speed

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    Your logo

    The dynamic process model

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    Your logo(ro3ect *utcome

    *ummy 0oils

    K!"

    Cood 0oils

    K!"

    efore After

    3-4C+3 LK"

    -2#I2 K!"

    -0JI++ ELM"

    *ummy 0oils

    K!"

    Cood 0oils

    K!"

    NO"

    Cood coils

    ELM"

    *ummy 0oil< coil needed by the continuous line but not needed by the downstream operations

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    Your logoey learning

    ynamic Process (odelling can support you

    not only to Identif& the system constraint, but

    also to e$ploit it meanwhile validate your

    assumptions for a robust solution

    Jow F

    …you can sim+late the material and decision flow

    considering the resources dependencies coupled

    with statistical fluctuation

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    Your logo

    Emanuele Strada

    Emanuele Strada is a thought leader on business

    process transformation at Thinking Solutions. He is an

    expert in supply chain re-engineering and dynamic

    process modelling with over 20 years’ experience. He

    has worked for some of the top manufacturing

    companies in the world - setting corporate strategy,

    holding various senior positions with a focus on re-

    engineering and creating systems and structures to

    deliver substantial improvements in companies.

    Emanuele is a well-respected expert in leading

    business change. He has proven capabilities in

    managing complex turnaround projects at an

    international level and has earned many awards for

    them.   [email protected]

    Place for the photo of the

    presenter

    Thans for &o+r time.