• Focusing everywhere is focusing nowhere

• scope of improvement
◦ where to start first
◦ low hanging fruit
• belief
◦ false
‣ many savings add up to a lot of total savings
• TQM -> 6 Sigma
• TPS -> Lean
• TOC
• Velocity
◦ architecture = TOC
◦ process
‣ JIT -> Lean
‣ 6 Sigma
◦ Deployment Framework
• A lot of programs take a life of their own
◦ ends rather than means
• Chapter Four
‣
◦ Champion
‣ sponsor
◦ Lean
‣ muda
• waste
• how to get the moolah out of the muda
‣ value from customer pov
‣ little improvements add up to big accomplishments
• not true
‣ rule of N / 10 activities where N = number of staff
‣ black belts = 2% of ratio
‣ correct green to black belt ratio
‣ optimal speed / flow
‣ balanced with market demand using takt time
‣ continual improvement
‣
◦ Six Sigma
‣ eliminate variation
‣ improve quality
• Chapter Five
◦ story
• Chapter Six
◦ checking the trash
‣ for rejects
‣ use poka-yoke
◦ throughput v output
◦ balance flow v capacity
◦ opex
◦ inventory
‣ money used to transform into throughput
◦ investment
 ‣ money used for capex
• Chapter Seven
◦ Lean
‣ move away from batch and queue
‣ takt time
• time available divided by demand of products
‣ balance the output to demand at every station by lean
‣ one piece flow
‣ performed so well the plant went out of business
• Chapter Eight
◦ pick chart dividing project by payoff and effort
◦ LSS did not work well in the Navy
◦ LSS Programs become means to an end
◦ Trust your instruments as a pilot
• Chapter Nine
◦ inventories high
◦ payroll high
‣ overtime high
‣ temp workers high
◦ balancing staff to takt time so that no one is standing around affects setup and teardown
◦ look out for conflicts between fixed systems
• Chapter Ten
◦ Key Factors
‣ price
‣ lead times
‣ perfection
‣ flexibility
◦ Key differences
‣ balanced line v unbalanced
‣ balanced line need a lot of work to reduce variation
‣ it will take so much time that the product life would be over
◦ Game to Sim
‣ balanced system
• a dozen dice
• jar of pennies
• paper and pen
• each have one die to roll
• start with four pennies each
• each round is twenty turns
• each turn is 3.5 pennies total is 70 pennies
• result is low throughput and high inventory
‣ unbalanced system
• one person is the constraint with one die
• everyone has two die
◦ this ensured a buffer in front of the constraint
‣ pacemaker
• pulls inventory to pacemaker
• has a balanced line working
• gets affected by variation
◦ if other steps are out of sync they cannot catch up
◦ they are now all possible bottlenecks that allow fluctuations
◦
 ‣ when there is a constraint don't be too eager to smash it
◦ A bottleneck is a constrained resource unable to fulfil demand
◦ Don't add resources until you clear up the system
◦ POUS
‣ point of use storage
◦ supermarkets
‣ racks with WIP
◦ Issue with Lean
‣ no real guarantee on savings
• Chapter Thirteen
◦ an action has interactions
◦ specialty implies flexibility
◦ flexibility requires ventures into unknown and even lawsuits
◦ if upstream is fluctuating downstream must have capacity to catchup
◦ Tree of Undesirables
‣ UDE
◦ bottleneck
‣ cannot consistently meet demand
◦ solution is an unbalanced line
◦ Third Game is DBR
‣ the herbie will drive the first station to gate input
‣ keep buffer in front of herbie
◦ Fourth Effort: Elevate the Constratint
‣ focus LSS on constraint
‣ make 1,2 = 4, 3,4 = 5, 5,6=6
◦ Fifth: Rinse and repeat
◦ Direction / Focus with TOC
◦ LSS for Magnitude
• Chapter Fifteen
◦ gate the higher priority work first
• Chapter Sixteen
◦ LSS looks good but is not focused
◦ Remove pacemaker
◦ wandering bottlenecks
◦ Kanbans
◦ min -max system
‣ reorder size is fixed
‣ time to replenish is not fast enough
◦ improvement in time-interval sales
‣ fix duration
‣ vary quantity to reorder
◦ reward the slow plodders and punish the fast
◦ juggling a ball
‣ one at a time
‣ move the hands fast
‣ don't drop
◦ Relay Runner
‣ single tasking work policy
• one task at a time
• run with it till end
• run till blocked
• do a higher priority
 ◦ guaranteed shipment?
◦ TRR
‣ time to reliably replenish
• Chapter Seventeen
◦ single tasking v multi-tasking
‣ why is the latter bad: switching in a single duration
‣ single tasking is focus on getting to pass the baton asap
• pass the baton
• cannot pass the baton: need permission
• swap out the baton: need permission
• focus for the many instead of self
• you don't make the schedule unless your are herbie
◦ look for inertia to lead to stagnation
◦ avoid local optimization by managers
• Chapter Eighteen
◦ constraint / drum
‣ buffer before constraint
‣ input gated by constraint
◦ time buffer to Shipping
◦ fixed-time-interval replenishment
‣ reduce inventory by thirty percent
◦ baton race
‣ less stretching of loads
‣ hoarding of tasks
‣ priority system
• due sooner has priority
• chapter Nineteen
◦ Reality Tree
‣ current
‣ future
• from customer POV
◦ what they value
‣ what we think they value
‣ what they actually value
‣ what they say they value
‣ what they pay for as value
◦ Ideas
‣ is labor costs the winner?
‣ Speed for customers
‣ Quality for customers
• less repetition
• less remedial action
‣ Safety for customers
‣ Innovation
‣ Not Value like long lead times to NOT do
• Chapter Twenty
◦ What happens when we change the constraint?
‣ if it is not robust a lot of variation
‣ It will wander and we will need to fix the process constraint to limit variance
‣ backup is good but be careful if you drain the buffer
◦ Downturn is good to get past your competition
‣ are you ready for it?
 ‣ are you able to position yourself for tomorrow?
‣ are you able to save on capex due to your competition?
‣ are you able to buy businesses from your competition?
◦ Seek standardisation
◦ manage inventory levels
•