Introduction to Theory of Constraints on

Описание: INTRODUCTION TO THEORY OF CONSTRAINTS - a tweeter chat!

Welcome! I’m “Dr Lisa” Lang from www.ScienceofBusiness.com. I’m excited to be talking #TheoryofConstraints today and to be hosting #USAMfgHour! Please introduce yourselves!

Remember to use the #USAMfgHour hashtag in your replies and use A1, A2, A3, etc in your answers!

Q1 #USAMfgHour : Have you read The Goal by Eliyahu M Goldratt? If you did, did you like it, love it, or not groove with the novel format?

A1 #USAMfgHour : The Goal is estimated to be the most read business book in the world. It’s worth a read if you haven’t read it or a re-read if you have! https://www.amazon.com/dp/0884271781?... Or you can read a SUMMARY here: https://www.velocityschedulingsystem....

Q2 #USAMfgHour : What’s the goal of YOUR business?

A2a #USAMfgHour : The GOAL for profit businesses is to make money. For some that may mean achieving or maintaining a certain profit level. Others may want to increase profits by 10% every year. It’s important to understand YOUR goal.

A2b #USAMfgHour : It’s common for business owners to state their goals as something other than making money but typically they are stating necessary conditions to making money.

Q3 #USAMfgHour : What’s keeping YOU from achieving more of your goal? What’s your constraint?

A3a #USAMfgHour : Your constraint is relative to your goal. E.G. The goal of a chain is to hold the maximum amount of weight possible, so the constraint is the weakest link. What’s keeping YOU from making money? That’s YOUR constraint.

A3b #USAMfgHour : Is your constraint internal (a process step) or external (E.G. sales, an outside process, raw material)? To check your answer, ask: if I magically had 20% more of what you think your constraint is, would my profits increase by 20%?
https://www.velocityschedulingsystem....

A3c #USAMfgHour : Most (about 80%) manufactures have an internal constraint. And interestingly, most job shops (custom manufacturers) find that their constraint moves based on their mix of work. https://www.velocityschedulingsystem....

A3d #USAMfgHour : If you have a hockey stick on your monthly shipments graph – meaning that most of your shipments happen the last few days of the month – you have an internal constraint! https://www.velocityschedulingsystem....

Q4 #USAMfgHour : All resources that aren’t your constraint, are non-constraints. If you improved a non-constraint, would you achieve more of your goal?

A4a #USAMfgHour : No. That’s why many “improvements” DON’T result in adding to the bottom-line. To improve  FOCUS on & LEVERAGE your constraint!

A4b #USAMfgHour : An hour added on your constraint is an hour added to your bottom-line. But saving setups at non-constraints doesn’t pay off.

Q5 #USAMfgHour : Policies, procedures and measures drive behavior. Do you think efficiency should be a key measure?

A5a #USAMfgHour : Your CONSTRAINT limits your output, all other resources are non-constraints and have excess capacity (by definition). Striving to be efficient EVERYWHERE is unproductive. https://www.velocityschedulingsystem....

A5b #USAMfgHour : Efficiency should only be measured at the constraint. If a non-constraint is efficient, you’re just increasing WIP.

Q6 #USAMfgHour : What was YOUR key takeaway or ah-ha during this Introduction to the #TheoryofConstraints?

A6 #USAMfgHour : Next step, put your take-aways into action!
*Results from https://www.velocityschedulingsystem.com

#USAMfgHour Thank you all for coming! I had a great time guest hosting! I tweet a #TOCtip of the day at   / tocexpert   and on LinkedIn at   / theoryofconstraints