ng bb 18 theory of constraints

Download NG BB 18 Theory of Constraints

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  • 1. National GuardBlack Belt TrainingModule 18 Theory of Constraints

2. UNCLASSIFIED / FOUOCPI Roadmap Measure 8-STEP PROCESS 6. See 1.Validate2. Identify 3. Set4. Determine5. Develop 7. Confirm 8. StandardizeCounter-the Performance ImprovementRoot Counter- Results SuccessfulMeasuresProblem GapsTargetsCause Measures & Process ProcessesThroughDefineMeasure Analyze ImproveControl TOOLSProcess MappingACTIVITIES Map Current Process / Go & SeeProcess Cycle Efficiency/TOC Identify Key Input, Process, Output Metrics Littles Law Develop Operational Definitions Operational Definitions Develop Data Collection PlanData Collection Plan Validate Measurement System Statistical Sampling Collect Baseline Data Measurement System Analysis Identify Performance Gaps TPM Estimate Financial/Operational Benefits Generic Pull Determine Process Stability/CapabilitySetup Reduction Complete Measure Tollgate Control ChartsHistogramsConstraint IdentificationProcess Capability 2 Note: Activities and tools vary by project. Lists provided here are not necessarily all-inclusive.UNCLASSIFIED / FOUO 3. UNCLASSIFIED / FOUOLearning Objectives Understand principles of TOC Learn and apply the 5 focusing steps Analyze Drum Buffer - Rope Differentiate and apply Littles Law, takt time and cycle time Use TOC to improve a process 3UNCLASSIFIED / FOUO 4. UNCLASSIFIED / FOUOVideo: The Goal Questions as you watch: What are the 5 steps? What is step 0? Who/what is the bottleneck? Why? How is the process fixed? What is POOGI?The Goal: A Process of Ongoing Improvement Based on the book by Eliyahu Goldratt and Jeff Cox (2004)4 UNCLASSIFIED / FOUO 5. UNCLASSIFIED / FOUOWhat is Theory of Constraints (TOC)? Basic Principles of TOC: A system must have a goal on which everything in that system isevaluated Systems function as chains. Strengthening the weakest linkbenefits the system the most Optimum system performance is NOT equal to the sum of theindividual process optima Systems operate in an environment of cause and effect. Visibleproblems are usually indicators (undesirable effects or UDE) ofsome critical root cause(s) that must be addressed An optimal solution deteriorates over time. Improvement must becontinuous. Policy constraints are the most common and most difficult tobreak. Policy constraints offer the most opportunity for systemimprovement.5 UNCLASSIFIED / FOUO 6. UNCLASSIFIED / FOUOTOC Measures of Progress Throughput: The rate at which the system produces customer value or generates money Inventory: Inventory is all the money invested in buying things that will at some time be sold (turned into Throughput) or that is tied up in the system (investment). Includes costs for raw materials, infrastructure, etc. Operating Expense: The costs associated with turning Inventory into Throughput. Includes costs for labor, utilities, interest, etc. 6UNCLASSIFIED / FOUO 7. UNCLASSIFIED / FOUOTOC Focuses on Constraints A constraint is anything that impedes Throughput. TOC concentrates on identifying and improving theworst impediment Identifying constraints Visual identification of WIP (Work in Process) Calculating Throughput for each process step 7UNCLASSIFIED / FOUO 8. UNCLASSIFIED / FOUOTOC Principles What are the 5 focusing steps of Theory of Constraints?Step 0: Know the Goal! 1. Identify the constraint 2. Exploit the constraint 3. Subordinate everything else to the constraint 4. Elevate the constraint 5. Re-evaluate, go back to step 1How can you identify the constraint?Piles of WIP or calculate cycle time8 UNCLASSIFIED / FOUO 9. UNCLASSIFIED / FOUOD-B-R Concept Drum The speed at which the constraintperforms Buffer A safety stock to account forprocess variation so the constraintdoesnt starve Rope -A signal to make sure that correctnumber of things in process put intothe system at the appropriate time9 UNCLASSIFIED / FOUO 10. UNCLASSIFIED / FOUOTOC Definitions Define Work in ProcessWIP - (Work in Process) the numberof things in process at any given timeDefine Exit Rate The amount of work completed over a given period of time, which should also equal customer demand (completions per hour).10UNCLASSIFIED / FOUO 11. UNCLASSIFIED / FOUOTOC Definitions What is Littles Law and what does it represent?Work in Process (WIP) Process Cycle Time = Exit RateVoice of the process11UNCLASSIFIED / FOUO 12. UNCLASSIFIED / FOUOTOC Definitions What is Takt Time and what does it represent? Time available for work in the given time periodCustomer demand for a given time periodVoice of the customer12UNCLASSIFIED / FOUO 13. UNCLASSIFIED / FOUOTOC DefinitionsDefine Cycle Time Cycle Time: The time it takes a product tomove (cycle) through a step or a process,including queue and move times. Common synonyms (often usedinterchangeably): Flow Time Lead Time Throughput Time 13 UNCLASSIFIED / FOUO 14. UNCLASSIFIED / FOUOTOC Example P1 P2P3P412 seconds 10 seconds 5 seconds 8 secondsWhat is the process cycle time?12 + 10 + 5 + 8 = 35 seconds If the Takt time is 11 seconds, where is the constraint, and why?P1, it exceeds the Takt time14UNCLASSIFIED / FOUO 15. UNCLASSIFIED / FOUOTOC Flow & PullExplain the difference between Pushand Pull work systems Push: Work is pushed into the system orprocess based on forecasts or schedules Pull: A customer-driven system that producesand moves a product/service only when thecustomer needs it15UNCLASSIFIED / FOUO 16. UNCLASSIFIED / FOUOKnowledge CheckTOC is.(pick one)A. A new way of getting people to work harderB. Strengthening the weakest link (constraint) in a systemC. A fancy scheduling tool meant to confuse workersD. Adding extra inspections to get first time quality16UNCLASSIFIED / FOUO 17. UNCLASSIFIED / FOUOKnowledge CheckLean is.(pick one)A. A new weight loss program for employeesB. A war on WasteC. Reducing manningD. Adding extra inspections to get first time quality 17 UNCLASSIFIED / FOUO 18. UNCLASSIFIED / FOUOKnowledge CheckSix Sigma is.(pick one)A. A new way of using metrics to blame workersB. A war on variationC. Complicated statistics meant to confuse workersD. Adding extra inspections to get first time quality18UNCLASSIFIED / FOUO 19. UNCLASSIFIED / FOUOWhat other comments or questionsdo you have? 19 UNCLASSIFIED / FOUO