e2v a semiconductor manufacturer for high tech applications in space, aero., health, etc. has a plant in Grenoble France that has been using the Theory of Constraints for over 6 years now. Recently, they redesigned their execution system around the realization that their human capabilities had become their constraint (and not the equipment). This was featured in the main French Industry magazine “l’Usine Nouvelle” on October 10th 2013.
In this significantly expanded second edition, Jim [Womack] draws on his most recent gemba walks to reflect on the past 30 years of lean, and assess the current state of lean today.
The course helps participants to reach their goals through a process called Strategic Navigation 2013™. The process is based on a dynamic five steps change design and management approach called the constraint management model (CMM). The Strategic Navigation course is designed to provide executives and system managers an effective method for designing organizational strategy, planning its deployment, evaluating its effectiveness, and making corrections as needed in the shortest possible time.
A brief 5 minute summary of how one applies the Theory of Constraints in a production environment. It covers: the axiom of the unbalanced plant, the existence of bottlenecks, the Drum – Buffer – Rope flow control mechanism and the improvement strategy (the 5 focusing steps).
Eiji Toyoda, who died on Sept. 17 at age 100, was the symbol of the manufacturing spirit of Toyota Motor Corp., supporting the company in its pioneering years and helping it develop into one of the world's leading automakers. [...] When the late Taiichi Ohno led efforts to introduce the Toyota Production System, including the renowned "just-in-time production" methods, it was Toyoda's support that was crucial in establishing the system. [...] For all his innovative business approaches, Toyoda was conservative in some aspects, such as a reduction in working hours for his employees. "Not working means becoming poor," he said. [...] "Manufacturing means creating new values, and it is the origin of civilization," Toyoda said in 1989. "Given the condition of the U.S economy, it is clear that once the manufacturing industry hollows out, restoring it will not be easy.
Philip Marris's insight:
Eiji Toyoda, the audacious, visionnary conservative. R.I.P.
Toyota pioneered modern lean manufacturing and created a highly efficient and reliable manufacturing system that the rest of the world sought to adopt with huge variations in success. A main thrust of Lean philosophy is to closely examine manufacturing processes, find unnecessary steps and eliminate them. The same philosophy suggests that we should only allow room for value adding steps – in terms of value perceived by the customer – as this drives up efficiency and enables us to manufacture simpler and faster. It is said that accumulating work-in-progress through the process ties-up resources and can obscure problems and is therefore deemed to not add value, so conventional Lean thinking is to eliminate this wasteful step.With this thinking comes a generally held view that Lean manufacturing and Accumulation cannot coexist....
The gist of this article is that you should hold just enough WIP to meet your production requirements with the changeover times you currently have and protect your bottlenecks against malfunction in other resources.
So far, this is stating the obvious, and a visit to a Toyota plant or even dealership is enough to see that the Toyota system is not one with zero inventory. You see shelves of stampings, bins of bolts, and trees of wire harnesses. The Kanban system involves some inventory, and, in fact, the only approach that doesn't is just-in-sequence.
What is considered waste is not all inventory, but unnecessary inventory, accumulated for no valid reason anyone can explain. The article, however, goes further and asserts that it is cheaper to accumulate WIP than to expose and solve the problems that make it necessary, which is a return to the mass-production thinking that was prevalent in pre-Lean operations management.
What the Lean successes of the past decades have shown is (1) that the overall costs of WIP were understated and (2) that the ingenuity of production people and engineer was underestimated. You operate today and next week with the resources that you have, dysfunctional as they may be, and you hold WIP as needed to sustain production. As you do this, however, as an organization, you keep working at solving your problems so that you need less and less WIP month by month and quarter by quarter. This perspective is missing from the article.
This 40 slide presentation in English by Philip Marris CEO of Marris Consulting and TLS expert tries to cover the basic introduction to why and how integrate the Theory Of Constraints + Lean + Six Sigma. Practitioners wont find anything very advanced. The purpose of the document is to allow members to explain briefly to those that have no knowledge of TLS what it is.
The 40 slide PDF with no login is available at the bottom of the page.
This document has been downloaded nearly 1 000 times in 6 days which is nice...but I must apologize for the poor quality (several typos etc.). As soon as I have some time I will do a V2.0
[Bob sproull says] The reason I felt compelled to write this new book is because I think we (my co-author Bruce Nelson and I) have a different kind of message to bring forward. This book is loosely based on both of our travels in the TOC world, both the positive and negative parts of our journeys. […] We tried to create a storyline that readers will relate to and to demonstrate just how quickly positive results can happen when TOC is used correctly....especially when it is integrated with Lean and Six Sigma. In my opinion, the path to profitability is not through removing waste and variation in every step of the process and I wanted to get this message out. …
Philip Marris's insight:
I think this book is the best introduction to TLS. Both the 2/3 novel and the 1/3 Technical Annexes are excellent.
Philip Marris's comment,
September 11, 2013 10:57 AM
"What a great book !!!! I find it to be just excellent !!!! I am in the manufacturing world so this book inspired something inside me like Goal did." This is the feedback I got today from a reader and that prompted me to add this item here today.
Philip Marris's comment,
September 11, 2013 10:59 AM
TLS is the most profitable management method. It takes: + proper FOCUS of managerial attention from ToC + clean up and removing all unnecessary tasks from Lean + stabilization of the entire system with SixSigma Lets take this way together!
Thank you Philip for sharing. I think that when people understand that you need to produce less to produce more, they really understand the essence of TOC. The next steps will be to use the spare resources at none-bottlenecks to reduce batches and thus reduces waves of work. And finally use Six Sigma analysis to reduce upstream fluctuations. This is done with the intension to reduce buffer size which will further reduce WIP and lead time. CQFD.
Marris Consulting is a consulting firm dedicated to manufacturing companies based in Paris France. We are Theory Of Constraints + Lean experts. This YouTube channel contains a series of videos on: TOC, TLS, Critical Chain Project Management, ...
Mike Rother wrote a book called Toyota Kata, and that book is near the top of the list of essential reading for anyone with aspirations of leading a truly lean enterprise.
The official Theory Of Constraints community organization (TOCICO) has launched a series of webinars that are freely accessible to both non-members and members. They are hosted by the world’s top TOC experts.
At the time of writing this post (28th Sept. 2013) the program is:
Two Types of Clouds - by Kelvyn Youngman
The Variety Dilemma - by Eli Schragenheim,
Journey Starts with Chaos - by Avraham Mordoch
Time or attention constraints - by Dr. Lisa Ferguson
The Project Manifesto - by Robert Newbold
Achieving a breakthrough in healthcare - by Alex Knight
By focusing on the “soft” side of lean and Six Sigma initiatives, leading global companies gain substantial, scalable, and sustainable advantages. A McKinsey Quarterly article.
[...] LEAN eliminates waste from your processes [...] Six Sigma reduces variation in your processes [...] Although there is a lot of synergy between LEAN and Six Sigma, a study from “The Avery Point Group” shows that since a couple of years companies are looking more for LEAN talents than for Six Sigma talents. There are four good reasons for that. [...] in 2013 the demand for LEAN talents exceeds the demand for Six Sigma talents by 24% and the demand for LEAN talents has been even stronger in the previous three years. There are four good reasons for this effect [...] It looks like Six Sigma is beaten by LEAN, but this might be a temporary impression. More and more of the world becomes automated. Processes become more and more complex. This will automatically lead to more complex problem solving and break through strategies … and Six Sigma will be back as complementary part of LEAN.
Philip Marris's insight:
Interesting but it is not clear what geography this data was gathered in; USA I guess. I beleive in the rest of the world the Six Sigma phenomena is a lot less widespread.
How by using and applying the Theory of Constraints and Lean Manufacturing mrinciples, Pinnacle Strategies helped the Company and Contractors in Charge of Cleaning Up the 2010 Oil Spill in the Gulf of Mexico, by Doubling the Supply of Skimmers, Boom and Other Critical Resources, and in Doing So Saved More than $700 Million. The mission: Improve supply lines and performance for one of the largest oil spill cleanup efforts in history.
From Bob Sproull's blog: "focused primarily on the Theory of Constraints and how to use it to maximize the profitability of any company. I also discuss why integrating TOC with Lean and Six Sigma is the most dynamic improvement methodology available today.
Mazda Executive Credits Theory of Constraints for Company Turnaround
Mr. Mitsuo Hitomi, Executive Officer from the Mazda Motor Corporation Power Train Development Division presented the opening keynote address at the largest TOCICO (Theory of Constraints International Certification Organization) conference ever held on how Critical Chain Project Management enabled Mazda to quickly develop their innovative SkyActiv capability.
At the 11th annual conference for theory of constraints professionals, Mr. Mitsuo Hitomi described the crisis faced by Mazda [...] described the last chance for Mazda to survive by developing technology that would achieve low fuel consumption from an internal combustion engine that would rival a hybrid engine [...] Starting with Critical Chain Project management education in 2007 [...]
Philip Marris's insight:
I saw the presentation of this in Frankfurt in June 2013. Very impressive. A lot of Theory of Constraints (Critical Chain Project Management) plus some Lean Engineering.
In October 2013 INSA Rennes starts a new MBA with a clearly "TOC + Lean + Six Sigma" curriculum. Rennes is on the French west coast. This public university is part of the INSA group (French National Applied Sciences Institutes).
Formation diplômante en alternance de niveau bac+6, le Mastère Spécialisé Excellence Opérationnelle (MSEO) vise à apporter une réponse aux besoins de performance organisationnelle des entreprises, quelle que soit leur taille ou leur secteur d’activité. Le programme inclu :
- Lean - 6 Sigma - Théorie des contraintes (TOC) - Méthodes agiles - Gestion de projets innovants
While lean manufacturing is the way to go, some of them are trying out a different kind of lean — not the traditional just-in-time (JIT) — by trying to decongest the pipeline itself and looking at the Theory of Constraints (ToC) for inspiration, according to a BS report. ToC is making them agile by freeing up their working capital faster and increasing capacity for diversification, noted the report. ...
[...] Toyota is helping various charities in the New York City area. Most charities simply like donations, especially cash. Toyota decided to give [Lean coaching].
This is the official data from the Toyota website. I beleive that Toyota Motor Company is THE example of "Good Lean" i.e. A growth model in terms of sales and employees.
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