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.
What do the quality gurus of the 80s think when they read the modern literature on lean & co? Have we moved beyond their original ideas? Or do we just say the same things using fancy, new words?
Tim McMahon is a Lean implementation leader, author, blogger, and founder of ALeanJourney.com. This site is dedicated to sharing lessons and experiences along the Lean Journey in the Quest for True North. Tim is the co-author of The Lean Handbook, a comprehensive Lean reference guide for accredited certification. He is also a regional board of director for AME and an Influential Voice for ASQ.
Tim McMahon is a Lean implementation leader, author, blogger, and founder of ALeanJourney.com. This site is dedicated to sharing lessons and experiences along the Lean Journey in the Quest for True North. Tim is the co-author of The Lean Handbook, a comprehensive Lean reference guide for accredited certification. He is also a regional board of director for AME and an Influential Voice for ASQ.
The following article reviews the Theory of Constraints (TOC), first published in The Goal by Eliyahu M. Goldratt and Jeff Cox in 1984, and compares it with Lean Thinking, as described by James P. Womack and Daniel T. Jones in Lean Thinking in 1996.
A one day executive seminar in Paris on 5th Sept. 2013.
Improve your operational and financial performance quickly and without investments. Achieve world class on time delivery performance.
Generate growth and avoid downsizing despite a difficult economic environment.
The TLS approach – TOC, Lean & Six Sigma – generates significantly greater returns than Lean or Six Sigma alone by focusing on the system’s constraint. This seminar will present a systematic framework to create rapid, significant and sustainable bottom line results.
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.
The purpose of this group is to hold discussions about the Toyota Production System. For this group, "Lean Manufacturing" is TPS with slightly different terminology. Some other disciplines, such as TPM is considered to be compatible with the goals of TPS and is therefore acceptable as a topic, but, for example, Six Sigma is not an acceptable topic, because it has a very different structure and approach from TPS. This Group does not disparage any particular approach that is different from TPS, we just want to maintain an understanding of the integrity of TPS. There are other Groups on LinkedIn for the discussion of these approaches.
No spamming or self promotion will be tolerated. All participants will be held to a reasonable standard of civility. Those who cannot comment within these prescribed standards will be blocked from the group immediately. To request membership, click Join and your request will be reviewed by the group manager.
Philip Marris's insight:
I recommend this LinkedIn group. Many experts contribute; the topics are often interesting and it is well managed by Fredrick Stimson Harriman.
I am offering a free copy of my book, Epiphanized [...] This edition also sheds more light on the reasoning behind why the very best improvement results can be achieved by the unification of the Theory of Constraints, Lean, and Six Sigma (TLS). [...]
The primary theme throughout this book is the focus on the unity and enhancement of improvement tools and methods. The book includes an appendix that allows readers to explore, in much more detail, the principles, tools, and techniques presented in the novel portion of the book.
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Daniel Bloom - his latest book titled Achieving HR Excellence through Six Sigma [...]
It is our message that this language of business is the TLS Continuum, which encompasses the principles behind Theory of Constraints (TOC), Lean, and Six Sigma. It is through the Continuum that HR can to migrate to a message of "here is what we deliver to the organization." They are more than just firefighters -- they are the key to strategic initiatives being created that propel the organization forward to a new level of overall alignment. We do this through a focus on the customer, the alignment of the total organization, and the enterprise embedded cultural change to one of constant quality improvement. To reach the point of HR excellence, it is critical that the organization implement the power of the problem-solving method by identifying the bottleneck that is slowing down the organization by utilizing TOC and then using the Lean toolbox to remove that single obstacle, which moves the organization along.
There's never a shortage of new books about how to be more effective in business. Most of them are forgettable, but here are 25 that changed the way we think about management
"Eliyahu Goldratt's The Goal is unusual among business management books for at least two reasons. First, Goldratt wasn't a titan of industry, a b-school professor, or even a consultant, but rather a physicist. Second, The Goal is a novel. Centered on a production manager named Alex Rogo who has three months to turn around a deficient, unprofitable manufacturing plant, The Goal explains the "Theory of Constraints," which among other points incorporates the idiom, "A chain is only as strong as its weakest link;" and focuses on bottlenecks, the great hindrances to productivity. Rogo uses the Socratic method to help fix his marriage, then applies it to his plant crew, coming up with steps to solve the plant's problems. The Goalhas been in print since 1984, and a revised third edition was released on the book's 20th anniversary. So does Rogo achieve his goal? You'll have to read it to find out." To see the full list of 25:http://www.time.com/time/specials/packages/completelist/0,29569,2086680,00.html
"Lean Six Sigma – This is perhaps one of the most popular training systems for manufacturing companies. [...] Online courses can provide training and certification for all levels from yellow belt to black belt."
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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.