Theory Of Constraints

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1 Theory Of Constraints Gustavo García

2 Complexity Which system is more complex? System A System B

3

4 Two different ways to approach complex systems THE TRADITIONAL WAY A A cent cent plus plus a cent cent plus plus a cent cent plus plus a cent makes a fortune Common Common Practice Practice Global Global Optimum Optimum = Local Local Optima Optima

5 Two different ways to approach complex systems THE SYSTEMIC WAY If If I I can can find find a leverage point and and a lever long long enough... I I can can move the the EARTH... Archimedes Global Global Optimum Optimum Local Local Optima Optima LEVERAGE POINT

6 Inherent Simplicity System 30 Physical aspect of the system Flow 5 25 Flow of cause-effect Effect Logical aspect of the system Goal units are down! Effect Effect Cause Effect Effect Capacity Constraint Core Problem

7 Chain Analogy Capitalizing on the Inherent Simplicity Engineering Maintenance Human Resources Sales Purchasing Quality IT Marketing Design Planning Production Logistics Finance

8 TOC five focusing steps 1. IDENTIFY the system s constraint(s). hat limits the system to reach higher performance???????

9 TOC five focusing steps 2. EXPLOIT the system s constraint(s). Squeeze it, get the most out of it.

10 TOC five focusing steps 3. SUBORDINATE everything else to the decision in step 2. Do whatever be needed to exploit the constraint. But don t do more!!

11 TOC five focusing steps 4. ELEVATE the system s constraint(s). Check also if it actually went where we expected it to go.

12 TOC five focusing steps 5. If a constraint has been broken GO BACK to step #1, but... Beware of Inertia!

13 TOC five focusing steps 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. If in the previous steps a constraint has been broken Go back to step #1, but do not allow Inertia to become a system s constraint.

14 TOC Solutions Operations Drum Buffer Rope Project Mgmt Critical Chain Distribution Replenishment Finance Throughput Accounting HR Day to day thinking tools Strategy the The thinking processes & viable vision process

15 Dependency & Fluctuations The twin killers 1. IDENTIFIER Murphy 3. SUBORDONNER 2. EXPLOITER Murphy 5. RETOURNER àl étape#1, mais attention à L INERTIE X 50 Lt/min 50 Lt/min 50 Lt/min 50 Lt/min 50 Lt/min 50 Lt/min 65 Lt/min 80 Lt/min 70 Lt/min 55 Lt/min 75 Lt/min 60 Lt/min 100% Efficacité ÉLEVER Flux de travail

16 The DBR Method 3 ROPE 1 DRUM WIP X BUFFER 2

17 Case Study A Mexican Metal Stamping Company (OEM s Supplier)

18 General implementation plan Deliver a DBR workshop to train a team and at the same time make this team implement it in one production line as a pilot test. Evaluate the impact and the results on this pilot test. (results were far beyond the expectations) Proceed to analyse the whole operation and set up the model for the TOC production solution Do a full DBR implementation.

19 Case Study 3 Constraint Buffer 4 SALES REQ./ DUE DATES RAW MTLS MATERIAL RELEASE PROGRAM CUTTING PUNCHING 2 DRUM SCHEDULE WELDING 1 FINAL CHECK & PACKAGING FINISHED GOODS WAREHOUSE FORMING PAINTING 3 Shipping Buffer

20 Now the market is the constraint 4 MATERIAL RELEASE PROGRAM RAW MTLS CUTTING PUNCHING FOLDING FINAL CHECK & PACKAGING FINISHED GOODS WAREHOUSE DRUM SCHEDULE DUE DATES Shipping Buffer

21 MERCI BEAUCOUP!