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The Theory of Chains
The document presents a series of fables and analogies to illustrate concepts of efficiency, effectiveness, and teamwork in a business context. It emphasizes that cooperation leads to better outcomes and highlights the importance of strengthening the weakest link in a system to improve overall performance. Additionally, it discusses key business metrics related to throughput, operating expenses, and how to manage staff effectively to enhance productivity.
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The Theory of Chains
- 1. Starring: The Chain as“itself” The Theory of Chains
- 2. The Theory ofChains Some (possibly overly simplistic but hopefully not too condescending) stories to help us think about what we are here for…
- 3. Part 1 The fableof the two mules
- 4. The fable ofthe two mules Let’s start with the famous fable of two mules who were tied together.
- 5. The fable ofthe two mules They each wanted grass, but neither could get any because they were pulling in opposite directions.
- 6. The fable ofthe two mules They pulled...
- 7. The fable ofthe two mules They pulled...
- 8. The fable ofthe two mules They pulled... And pulled...
- 9. The fable ofthe two mules They pulled... And pulled...
- 10. The fable ofthe two mules What were they doing wrong? What is the solution?
- 11. The fable ofthe two mules The answer is obvious!
- 12. The fable ofthe two mules They need to try harder!
- 13. The fable ofthe two mules They need to try harder!
- 14. The fable ofthe two mules They need to try harder!
- 15. The fable ofthe two mules They need to try harder!
- 16. The fable ofthe two mules They need to be more efficient!
- 17. The fable ofthe two mules They need to be more efficient!
- 18. The fable ofthe two mules They need to be more efficient!
- 19. The fable ofthe two mules For anyone who doesn’t know this story... The moral is that co-operation is better than struggle.
- 20. The fable ofthe two mules For anyone who doesn’t know this story... The moral is that co-operation is better than struggle. But that’s not my moral...
- 21. Part II Efficiency vs.Effectiveness
- 22. Efficiency This is anefficient light bulb!
- 23. Efficiency This is anefficient light bulb!
- 24. Efficiency This is anefficient light bulb!
- 25. Effectiveness Effectiveness is aboutthe direction, not the speed!
- 26. Effectiveness Effectiveness is aboutthe direction, not the speed!
- 27. Effectiveness Effectiveness is aboutthe direction, not the speed!
- 28. Efficiency vs. Effectiveness Efficient Ineffective Effective Inefficient Ahelpful and un-ironic four-quadrant diagram
- 29. Efficiency vs. Effectiveness Efficient Ineffective Effective Inefficient Ahelpful and un-ironic four-quadrant diagram
- 30. Efficiency vs. Effectiveness Efficient Ineffective Effective Inefficient Ahelpful and un-ironic four-quadrant diagram
- 31. Efficiency vs. Effectiveness Efficient DieSlowly Ineffective Effective Die Quickly Inefficient A helpful and un-ironic four-quadrant diagram
- 32. Efficiency vs. Effectiveness Efficient DieSlowly Ineffective Effective Die Quickly Inefficient A helpful and un-ironic four-quadrant diagram
- 33. Efficiency vs. Effectiveness Efficient DieSlowly Thrive Ineffective Effective Die Quickly Survive Inefficient A helpful and un-ironic four-quadrant diagram
- 34. Efficiency vs. Effectiveness “Efficiencyis doing things right; effectiveness is doing the right things.” “There is surely nothing quite so useless as doing with great efficiency what should not be done at all.” “The most serious mistakes are not being made as a result of wrong answers. The true dangerous thing is asking the wrong question.” -- Peter Drucker.
- 35.
- 36. The chain Can yousee a problem with this chain?
- 37. The chain Can yousee a problem with this chain?
- 38.
- 39.
- 40.
- 41. The chain Give up?The answer is...
- 42. The chain The linksare wasting metal and heavier than they need to be.
- 43. The chain I reducedmy diameter by 2mm I replaced my steel with aluminium A more efficient chain!
- 44. The chain I reducedmy diameter by 2mm I replaced my steel with aluminium
- 45. The chain I reducedmy diameter by 2mm I replaced my steel with aluminium
- 46. Time for thefirst overly-simplistic business analogy....
- 47.
- 48. The chain We were 15% more efficient We saved £100K Finance Sales ??? Fulfilment Amore efficient business! We cut costs by 10% IT
- 49. The chain We were 15% more efficient We saved £100K Finance Sales ??? Fulfilment Amore efficient business! We cut costs by 10% IT
- 50. The chain I’ll lendyou some of my metal Me too! Help the weakest link get stronger.
- 51. The chain I’ll lendyou some of my metal Me too! Help the weakest link get stronger. There is no point making other links efficient until the weakest link is strengthened..
- 52. The chain • Whatis the goal of a chain?
- 53. The chain • Whatis the goal of a chain? To be strong
- 54. The chain • Whatis the goal of a chain? • Is there always a weakest link?
- 55. The chain • Whatis the goal of a chain? • Is there always a weakest link? Yes!
- 56. The chain • Whatis the goal of a chain? • Is there always a weakest link? • What is the most effective action to take?
- 57. The chain • Whatis the goal of a chain? • Is there always a weakest link? • What is the most effective action to take? Make the weakest link stronger
- 58.
- 59.
- 60.
- 61. Part IV The bucketbrigade
- 62.
- 63. The bucket brigade MeetMr. Blue.
- 64. The bucket brigade MeetMr. Blue. And Mr Pink.
- 65. The bucket brigade MeetMr. Blue. And Mr Pink. And Mr Green.
- 66. The bucket brigade Theyare forming a human chain – a bucket brigade.
- 67. The bucket brigade Water input Watercomes in one end....
- 68. The bucket brigade Water input Water output ...And goes out the other.
- 69. The bucket brigade Water input Butwhat happens... Water output
- 70. The bucket brigade Water input ...if Mr Blue is faster than Mr Pink? Water output
- 71. The bucket brigade Water input Water output Abig puddle coming soon. ... if Mr Blue is faster than Mr Pink?
- 72. The bucket brigade Water input Andwhat happens... Water output
- 73. The bucket brigade Water input ...if Mr Green is faster than Mr Pink? Water output
- 74. The bucket brigade Water input Water output MrGreen does a lot of waiting. He is quite bored now. Even Twitter has lost its charm. ... if Mr Green is faster than Mr Pink?
- 75. The bucket brigade Water input •What is the goal of a bucket brigade? Water output
- 76. The bucket brigade Water input Water output •What is the goal of a bucket brigade? To move as much water as possible in as little time as possible. Throughput, not efficiency.
- 77. The bucket brigade Water input Water output •What is the goal of a bucket brigade? • What (or rather who) determines the throughput?
- 78. The bucket brigade Water input Water output •What is the goal of a bucket brigade? • What (or rather who) determines the throughput? The slowest person
- 79. The bucket brigade Water input Water output •What is the goal of a bucket brigade? • What (or rather who) determines the throughput? • Is there always a weakest link?
- 80. The bucket brigade Water input Water output •What is the goal of a bucket brigade? • What (or rather who) determines the throughput? • Is there always a weakest link? Yes! There is always a slowest person
- 81. The bucket brigade Water input • • • • Water output Whatis the goal of a bucket brigade? What (or rather who) determines the throughput? Is there always a weakest link? What is the most effective action to take?
- 82. The bucket brigade Water input • • • • Water output Whatis the goal of a bucket brigade? What (or rather who) determines the throughput? Is there always a weakest link? What is the most effective action to take? Make the weakest link stronger
- 83. The bucket brigade Water input • • • • Water output Whatis the goal of a bucket brigade? What (or rather who) determines the throughput? Make the slowest person faster Is there always a weakest link? What is the most effective action to take? Make the weakest link stronger
- 84. The bucket brigade Water input Question:Which person never gets a rest? What happens if he does rest? Water output
- 85. The bucket brigade Water input Water output Question:Which person never gets a rest? What happens if he does rest? Hint
- 86. The bucket brigade Water input Water output Question:Which people always get a chance to be idle? What happens if you insist that they always keep working?
- 87. The bucket brigade Water input Water output Hint Question:Which people always get a chance to be idle? What happens if you insist that they always keep working?
- 88.
- 89.
- 90. Part V What isthe goal of a business?
- 91. How a businessworks Stuff we buy Our business Inventory/Investment Stuff we sell Operating expenses
- 92. The goal ofa business Throughput Goal: Try to increase this bit Our business Inventory/Investment Operating expenses
- 93. The goal ofa business Throughput Our business Inventory/Investment Operating expenses These numbers are related, often in unobvious ways. Changing one affects all the others. It’s a balancing act!
- 94. The goal ofa business Throughput Our business Inventory/Investment Operating expenses Some common metrics to help you relate the numbers and do the balancing act...
- 95. The goal ofa business Throughput Our business Inventory/Investment Operating expenses Some common metrics to help you relate the numbers and do the balancing act... Net profit (NP) = Throughput (T) - Operating expense (OE)
- 96. The goal ofa business Throughput Our business Inventory/Investment Operating expenses Some common metrics to help you relate the numbers and do the balancing act... Return on investment (ROI) = Net profit (NP) ÷ Investment (I)
- 97. The goal ofa business Throughput Our business Inventory/Investment Operating expenses Some common metrics to help you relate the numbers and do the balancing act... Productivity = Throughput (T) ÷ Operating Expense (OE)
- 98. The goal ofa business Throughput Our business Inventory/Investment Operating expenses Some common metrics to help you relate the numbers and do the balancing act... Investment Turns = Throughput (T) ÷ Investment (I)
- 99. What if abucket brigade was like a business? Another overly-simplistic business analogy....
- 100. If the bucketbrigade were a business... Water input If the bucket brigade were a business, what questions would we ask? Water output
- 101. If the bucketbrigade were a business... Water input What is the throughput? Water output
- 102. If the bucketbrigade were a business... Water input Water output What is the throughput? How long does it take a bucket to move through the system (“flow time”)? a.k.a "latency"
- 103. If the bucketbrigade were a business... Water input Water output What is the throughput? How long does it take a bucket to move through the system (“flow time”)? What is the current inventory?
- 104. If the bucketbrigade were a business... Water input Water output What is the throughput? How long does it take a bucket to move through the system (“flow time”)? What is the current inventory? What are the operating expenses?
- 105. Real Numbers Mr Bluecan do 2 Buckets/hour Each worker costs $12/hour Mr Pink can do 1 Bucket/hour Mr Green can do 3 Buckets/hour Each bucket sells for a markup of $24 Let’s look at some real numbers!
- 106. Real Numbers 2 Buckets/hour $24 $12/hour 1Bucket/hour $24 What is the throughput? $12/hour 3 Buckets/hour $24 $12/hour $24
- 107. Real Numbers 2 Buckets/hour $24 $12/hour 1Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 What is the throughput? 1 bucket/hour (Mr Pink is to blame)
- 108. Real Numbers 2 Buckets/hour $24 $12/hour 1Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)?
- 109. Real Numbers 2 Buckets/hour $24 $12/hour 1Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? Mr Blue takes 30 min per bucket, and Mr Green takes 20 min, so it takes a bucket 1h 50m to go through the system.
- 110. Real Numbers 2 Buckets/hour $24 $12/hour 1Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? What is the current inventory?
- 111. Real Numbers 2 Buckets/hour $24 $12/hour 1Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? What is the current inventory? Little’s law: inventory = throughput * flow time. So inventory = 1 bucket/hour x 1.83 hours => 1.83 buckets
- 112. Real Numbers 2 Buckets/hour $24 $12/hour 1Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? What is the current inventory? What are the operating expenses?
- 113. Real Numbers 2 Buckets/hour $24 $12/hour 1Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? What is the current inventory? What are the operating expenses? $12/hour x three people = $36/hour
- 114. Real Numbers 2 Buckets/hour $24 $12/hour 1Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 Throughput (buckets/hr) (money/hr) Flow time Inventory (buckets) Opex (money/hr) Net Profit (money/hr) = T - OE Inventory turns = T/I 1/hr or $24/hr 1h 50m 1.83 $36/hr -$12/hr 0.54 Here are all the numbers.... Oh noes.... We’re losing money!
- 115. Real Numbers We’re losingmoney – what should we do?
- 116. Real Numbers We’re losingmoney – what should we do? Let’s step back and look at the problem...
- 117. Real Numbers We’re losingmoney – what should we do? Let’s step back and look at the problem... Mr Pink is working flat out but look at all the idle people! Mr Blue is only working ½ time. And Mr Green is working only a third of the time. Lazy sod!
- 118. Real Numbers We’re losingmoney – what should we do? Let’s step back and look at the problem... Mr Pink is working flat out but look at all the idle people! Mr Blue is only working ½ time. And Mr Green is working only a third of the time. There’s your problem right there!
- 119. Real Numbers What todo? Option 1: Panic!
- 120. Real Numbers What todo? Option 1: Panic! Option 1: Reduce wages or staff (helps with operating expenses) Especially the lazy ones like Mr Pink...
- 121. Real Numbers What todo? Option 1: Reduce wages or staff (helps with operating expenses) Option 2: Hire extra people (helps with throughput, maybe?)
- 122. Real Numbers What todo? Option 1: Reduce wages or staff (helps with operating expenses) Option 2: Hire extra people (helps with throughput, maybe?) Option 3: Change the process (but how?)
- 123. Fixing the problemby reducing staff 2 Buckets/hour $24 $12/hour 1 Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 Let’s start with option 1: “Reduce staff on the non-bottlenecks” A.k.a. Don’t pay people to be idle.
- 124. Fixing the problemby reducing staff As it happens, around this time, Mr Blue had a very unfortunate industrial accident – he was cut in half.
- 125. Fixing the problemby reducing staff As it happens, around this time, Mr Blue had a very unfortunate industrial accident – he was cut in half. Luckily he can still work at 2 buckets/hour, But since there is only half of him, his average throughput is now 1 bucket/hr.
- 126. Fixing the problemby reducing staff As it happens, around this time, Mr Blue had a very unfortunate industrial accident – he was cut in half. Luckily he can still work at 2 buckets/hour, But since there is only half of him, his average throughput is now 1 bucket/hr. As a result, the cruel capitalists who employ him have decided to slash his salary in half as well -- to only $6/hr.
- 127. Fixing the problemby reducing staff By coincidence Mr Green also had a very unfortunate industrial accident – he was cut into one third.
- 128. Fixing the problemby reducing staff By coincidence Mr Green also had a very unfortunate industrial accident – he was cut into one third.
- 129. Fixing the problemby reducing staff By coincidence Mr Green also had a very unfortunate industrial accident – he was cut into one third. His productivity is only a third now. Just like Mr Blue, his average is now 1 bucket/hr. The cruel capitalists have decided to slash his salary even more -- to only $4/hr.
- 130. Fixing the problemby reducing staff 1 Bucket/hour $24 $6/hour 1 Bucket/hour $24 $12/hour 1 Bucket/hour $24 $4/hour $24 Here is the new setup. Mr Blue and Mr Green have been rehired at lower wages, corresponding to their lower throughput.
- 131. Fixing the problemby reducing staff 1 Bucket/hour $24 $6/hour 1 Bucket/hour $24 $12/hour 1 Bucket/hour $24 $4/hour What is the throughput? Still 1 bucket/hour $24
- 132. Fixing the problemby reducing staff 1 Bucket/hour $24 $6/hour 1 Bucket/hour $24 $12/hour 1 Bucket/hour $24 $4/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? Mr Blue and Mr Green have lower throughputs, but their latency is still the same. so the flow time is unchanged at 1h 50min.
- 133. Fixing the problemby reducing staff 1 Bucket/hour $24 $6/hour 1 Bucket/hour $24 $12/hour 1 Bucket/hour $24 $4/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? What is the current inventory? Same as before.
- 134. Fixing the problemby reducing staff 1 Bucket/hour $24 $6/hour 1 Bucket/hour $24 $12/hour 1 Bucket/hour $24 $4/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? What is the current inventory? What are the operating expenses? $6 + $12 + $4 = $22/hour
- 135. Fixing the problemby reducing staff 1 Bucket/hour $24 Throughput (buckets/hr) (money/hr) 1/hr or $24/hr $6/hour Flow time 1h 50m 1 Bucket/hour $24 $12/hour 1 Bucket/hour $24 $4/hour Inventory Opex Net Profit (buckets) (money/hr) (money/hr) = T - OE 1.83 Here are the new numbers... $22/hr +$2/hr $24 Inventory turns = T/I 0.54
- 136. Fixing the problemby adding staff 2 Buckets/hour $24 $12/hour 1 Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 Now try option 2: “Adding extra staff on the bottleneck” That is -- bring the weakest links up to speed
- 137. Fixing the problemby adding staff 2 Buckets/hour $24 $12/hour 3 Buckets/hour $24 $36/hour 3 Buckets/hour $24 $12/hour We’ll hire 2 people to help Mr Pink. This team’s throughput is now 3 buckets/hour! $24
- 138. Fixing the problemby adding staff 2 Buckets/hour $24 $12/hour 3 Buckets/hour $24 $36/hour But now Mr Blue is the bottleneck. 3 Buckets/hour $24 $12/hour $24
- 139. Fixing the problemby adding staff 2 Buckets/hour $24 $12/hour 3 Buckets/hour $24 $36/hour 3 Buckets/hour $24 $12/hour But now Mr Blue is the bottleneck. Luckily he has a half-brother who can help. $24
- 140. Fixing the problemby adding staff 2 Buckets/hour $24 $12/hour 3 Buckets/hour $24 $36/hour 3 Buckets/hour $24 $12/hour But now Mr Blue is the bottleneck. Luckily he has a half-brother who can help. Literally! $24
- 141. Fixing the problemby adding staff 3 Buckets/hour $24 $18/hour 3 Buckets/hour $24 $36/hour 3 Buckets/hour $24 $12/hour $24 Mr Blue’s throughput is now 3 buckets/hour as well.
- 142. Fixing the problemby adding staff 3 Buckets/hour $24 Throughput (buckets/hr) (money/hr) 3/hr or $72/hr $18/hour Flow time 1h 50m 3 Buckets/hour $24 $36/hour 3 Buckets/hour $24 $12/hour Inventory Opex Net Profit (buckets) (money/hr) (money/hr) = T - OE 5.5 $66/hr Here are the numbers for this approach. +$6/hr $24 Inventory turns = T/I 0.54
- 143. Fixing the problemby adding staff Moral: Adding staff can be more profitable than reducing staff – if you know where to add them. Adding also gives economies of scale, because there are other fixed costs like buildings, etc., which don’t need to be scaled at the same rate.
- 144. Fixing the problemby adding staff Moral: Adding staff can be more profitable than reducing staff – if you know where to add them. Adding also gives economies of scale, because there are other fixed costs like buildings, etc., which don’t need to be scaled at the same rate. Question: Under what circumstances can you NOT add staff?
- 145. Fixing the problemby adding staff Moral: Adding staff can be more profitable than reducing staff – if you know where to add them. Adding also gives economies of scale, because there are other fixed costs like buildings, etc., which don’t need to be scaled at the same rate. But can we do even better?
- 146. Fixing the problemby changing the process 2 Buckets/hour $24 $12/hour 1 Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 Option 3 is “changing the process”. What does that look like?
- 147. Fixing the problemby changing the process 2 Buckets/hour $24 $12/hour 1 Bucket/hour $24 $12/hour 3 Buckets/hour $24 $12/hour $24 What happens if we get rid of the second step in the process and merge it into the first?
- 148. Fixing the problemby changing the process What happens if we get rid of the second step in the process and merge it into the first?
- 149. Fixing the problemby changing the process Mr Blue and Mr Pink now work together on step 1. Their combined throughput is now 3 buckets/hour.
- 150. Fixing the problemby changing the process 3 Buckets/hour $24 $12/hour $12/hour 3 Buckets/hour $24 $12/hour Mr Blue and Mr Pink now work together on step 1. Their combined throughput is now 3 buckets/hour. $24
- 151. Fixing the problemby changing the process 3 Buckets/hour $24 $12/hour $12/hour 3 Buckets/hour $24 $12/hour Mr Blue and Mr Pink now work together on step 1. Their combined throughput is now 3 buckets/hour. $24
- 152. Fixing the problemby changing the process 3 Buckets/hour $24 $12/hour $12/hour 3 Buckets/hour $24 $12/hour What is the throughput? 3 buckets/hour $24
- 153. Fixing the problemby changing the process 3 Buckets/hour $24 $12/hour $12/hour 3 Buckets/hour $24 $12/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? Mr Blue and Mr Pink have a combined latency of 40 mins so the total flow time is now 1 hour.
- 154. Fixing the problemby changing the process 3 Buckets/hour $24 $12/hour $12/hour 3 Buckets/hour $24 $12/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? What is the current inventory? Little’s law: inventory = throughput * flow time. So inventory = 3 bucket/hour x 1 hours => 3 buckets
- 155. Fixing the problemby changing the process 3 Buckets/hour $24 $12/hour $12/hour 3 Buckets/hour $24 $12/hour $24 What is the throughput? How long does it take a bucket to move through the system (“flow time”)? What is the current inventory? What are the operating expenses? $12 x three = $36/hour
- 156. Fixing the problemby changing the process 3 Buckets/hour $24 Throughput (buckets/hr) (money/hr) 3/hr or $72/hr $12/hour Flow time 1h $12/hour 3 Buckets/hour $24 $12/hour Inventory Opex Net Profit (buckets) (money/hr) (money/hr) = T - OE 3 $36/hr +$36/hr $24 Inventory turns = T/I 1
- 157. Summary of differentapproaches Option Throughput (buckets/hr) (money/hr) Flow time Inventory Opex Net Profit (buckets) (money/hr) (money/hr) = T - OE Inventory turns = T/I Original 1/hr or £24/hr 1h 50m 1.83 £36/hr -£12/hr 0.54 Reduce Staff 1/hr or £24/hr 1h 50m 1.83 £22/hr +£2/hr 0.54 Increase Staff 3/hr or £72/hr 1h 50m 5.5 £66/hr +£6/hr 0.54 Change Process 3/hr or £72/hr 1h 3 £36/hr +£36/hr 1.0
- 158. Summary of differentapproaches Option Throughput (buckets/hr) (money/hr) Flow time Inventory Opex Net Profit (buckets) (money/hr) (money/hr) = T - OE Inventory turns = T/I Original 1/hr or £24/hr 1h 50m 1.83 £36/hr -£12/hr 0.54 Reduce Staff 1/hr or £24/hr 1h 50m 1.83 £22/hr +£2/hr 0.54 Increase Staff 3/hr or £72/hr 1h 50m 5.5 £66/hr +£6/hr 0.54 Change Process 3/hr or £72/hr 1h 3 £36/hr +£36/hr 1.0
- 159. Summary of differentapproaches Moral: Changing the process can have much greater impact than just tweaking efficiencies.
- 160. Summary of differentapproaches Moral: Changing the process can have much greater impact than just tweaking efficiencies.
- 161. Summary of differentapproaches Moral: Changing the process can have much greater impact than just tweaking efficiencies.
- 162. What is thegoal of IT?
- 163. What is thegoal of IT? Sales IT Supply Chain What is the most effective action for IT to take?
- 164. What is thegoal of IT? Sales IT Supply Chain
- 165. What is thegoal of IT? Sales IT Supply Chain
- 166. What is thegoal of IT? Sales IT Supply Chain IT should not be a cost centre
- 167. What is thegoal of IT? Throughput The business Inventory/Investment Operating expenses IT should add value to the business
- 168. What is thegoal of IT? Throughput The business Inventory/Investment Operating expenses IT should add value to the business
- 169. What is thegoal of IT? Throughput The business Inventory/Investment Operating expenses IT should add value to the business
- 170. What is thegoal of your team?
- 171. What is thegoal of your team? Sales Your team Supply Chain What is the most effective action for your team to take?
- 172. What is thegoal of your team? Throughput The business Inventory/Investment Operating expenses Where can your team add value to the business?
- 173. What is thegoal of your team? Throughput The business Inventory/Investment Operating expenses Where can your team add value to the business?
- 174. What is thegoal of your team? For example, how might an HR team add value?
- 175. What is thegoal of your team? For example, how might an HR team add value? How can HR help throughput? • Reduce purchase costs by hiring or training expert purchasers. • Better throughput by encouraging employee feedback and learning. • Promoting and managing continuous improvement. How can HR help capex? - Reduce need for facilities by helping people work remotely. How can HR help opex? • Reduce turnover with better working conditions, training, employee morale.
- 176. What is thegoal of your team? For example, how might an HR team add value? How can HR help throughput? • Reduce purchase costs by hiring or training expert purchasers. • Better throughput by encouraging employee feedback and learning. • Promoting and managing continuous improvement. How can HR help capex? - Reduce need for facilities by helping people work remotely. How can HR help opex? • Reduce turnover with better working conditions, training, employee morale.
- 177.
- 178. What next? “The Goal” byEliyahu M. Goldratt & Jeff Cox And find out about • Value Streams • The “Theory Of Chains” • Lean Enterprise/Lean Accounting • The Toyota Way
- 179. What next? “The Goal” byEliyahu M. Goldratt & Jeff Cox And find out about • Value Streams • The “Theory Of Chains” • Lean Enterprise/Lean Accounting • The Toyota Way
- 180. Thank you! Contact me@ScottWlaschin