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The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
The Goal - part 2 by Eli Goldratt
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The Goal - part 2 by Eli Goldratt

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more detail presentation from th ebooks of Eli Goldratt, The Goals

more detail presentation from th ebooks of Eli Goldratt, The Goals

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  • 1. THE GOALA PROCESS OF ONGOING IMPROVEMENT<br />Company Name<br />// YIS // 062009//<br />
  • 2. Why can&apos;t we consistently get a quality product out the door on time at the cost that can beat the competition? <br />WHAT IS <br />YOUR PROBLEM ??<br />What can we possibly do to be more competitive? <br />~ YIS//062009 ~<br />
  • 3. BIZ UNIT WORRIES<br />WHAT IS OUR GOAL ??<br /><ul><li> Quality
  • 4. Product design
  • 5. Price
  • 6. Deliveries </li></ul>~ YIS//062009 ~<br />
  • 7. ROBOTS??<br />&quot;Have they really increased productivity at your plant?“<br />Was your plant able to ship even one more product per day as a result of what happened in the department where you installed the robots?<br />&quot;Did you fire anybody?&quot; <br />Did you lay anybody off because we installed the robots?“ <br />“Did your inventories go down?”<br /> “If your inventories haven&apos;t gone down . . . and your employee expense was not reduced . . . and if your company isn&apos;t selling more products—which obviously it can&apos;t, if you&apos;re not shipping more of them—then you can&apos;t tell me these robots increased your plant&apos;s productivity.&quot;<br />
  • 8. You cannot understand the meaning of productivity unless you know what the goal is. Until then, you&apos;re just playing a lot of games with numbers and words.&quot; <br />PRODUCTIVITY ??<br />&quot;Your problem is you don&apos;t know what the goal is. And, by the way, there is only one goal, no matter what the company.&quot; <br />Productivityis the act of bringing a company closer to its goal. <br />Every action that brings a company closer to its goal is productive. <br />Every action that does not bring a company closer to its goal is not productive. <br />~ YIS//062009 ~<br />
  • 9. So what is the goal? <br />What are we supposed to be doing here? <br />What keeps this place working? <br />IS THIS YOUR GOAL ?<br /><ul><li> cost-effective purchasing,
  • 10. employing good people,
  • 11. high technology,
  • 12. producing products,
  • 13. producing quality products,
  • 14. selling quality products,
  • 15. capturing market share.
  • 16. communications
  • 17. customer satisfaction </li></ul>The goal of a manufacturing organization is to MAKE MONEY<br />~ YIS//062009 ~<br />
  • 18. FINANCIAL MEASUREMENT<br />NET PROFIT <br />Money you’ve made<br />It&apos;s a measure of survival: <br />Stay above the line and you&apos;re OKAY; <br />Go below and you&apos;re DEAD.<br />RETURN ON INVESTMENT (ROI)<br />the money made VS the money invested<br />CASHFLOW<br />Money coming in VS money coming out<br />~ YIS//062009 ~<br />
  • 19. OPERATIONAL MEASUREMENT<br />Remember ….<br />We are always talking about the organization as a whole—not about the manufacturing department, or about one plant, or about one department within the plant. <br />We are not concerned with local optimums. <br />Throughput <br />the rate at which the system generates <br />money through sales<br />Inventory <br />all the money that the system has invested in <br />purchasing things which it intends to sell <br />Operational expense <br />all the money the system spends in order to <br />turn inventory into throughput<br />~ YIS//062009 ~<br />
  • 20. PHENOMENA IN PRODUCTION<br />An event, or a series of events, must take place before another can begin . . . the subsequent event depends upon the ones prior to it<br />Dependent events<br />Statistical fluctuations<br />Kind of information that we cannot precisely predict. These types of information vary from one instance to the next. <br />
  • 21. DEPENDENT EVENT<br />&<br />STATISTICAL FLUCTUATION<br />Is the customer have their preference in the menu ?<br />Is the food still available ?<br />How long it takes to serve the food order?<br />How many guest should be served?<br />How long the chef need to cook?<br />Is all the material need avail ?<br />~ YIS//062009 ~<br />
  • 22. We’ve got limits on how fast we can.. <br />However, there is no limit on my ability to slow down. <br />Or on anyone else&apos;s ability to slow down. Or stop. <br />And if any of us did, the line would extend indefinitely.<br />HERBIE<br />What&apos;s happening is not an averaging out of the fluctuationsin our various speeds, <br />but an accumulation of the fluctuations. <br />And mostly it&apos;s an accumulation of slowness—because dependency limits the opportunities for higher fluctuations. And that&apos;s why the line is spreading..<br />
  • 23. ~ YIS//062009 ~<br />DRUM BUFFER ROPE<br />We can make the line shrink only by having everyone in the back of the line move much faster than Ron&apos;s average over some distance<br />
  • 24. LET’S PLAY THE GAME !!<br />&quot;The idea is to move as many matches as you can from your bowl to the bowl on your right. <br />When it&apos;s your turn, you roll the die, and the number that comes up is the number of matches you can move. <br />But you can only move as many matches as you&apos;ve got in your bowl.<br />So if you roll a five and you only have two matches in your bowl, then you can only move two matches. <br />And if it comes to your turn and you don&apos;t have any matches, then naturally you can&apos;t move any.”<br />INVENTORY<br />CAPACITY<br />~ YIS//061409 ~<br />
  • 25. MANAGE YOUR RESOURCES!!<br />Balance the flow, <br />not capacity !!<br />You should not balance capacity with demand. <br />What you need to do instead is balance the flow of product through the plant with demand from the market<br />
  • 26. INCREASE YOUR THROUGHPUT<br />By<br />FOCUSING ON YOUR BOTTLENECK<br />MAKE SURE THE <br />BOTTLENECKS TIME <br />NOT WASTED <br /><ul><li> Don’t let it sitting idle
  • 27. Don’t process part which are already defective or will become defective through a careless worker / poor process control
  • 28. Don’t make it work on parts you</li></ul>don’t need<br />GAIN MORE CAPACITY<br /><ul><li>Shift the parts that don’t have to be processed by the bottleneck to next non-bottleneck process
  • 29. Use other machine that can do the same process
  • 30. Ask vendor support</li></ul>~ YIS//062009 ~<br />
  • 31. Capacity of the plant <br /> = <br />the capacity of its bottlenecks<br />PUT QC IN FRONT OF THE BOTTLE NECKS<br />Make sure the bottleneck works only on good parts by weeding out the ones that are defective. <br />If you scrap a part before it reaches the bottleneck, all you have lost is a scrapped part. But if you scrap the part after it&apos;s passed the bottleneck, you have lost time that cannot be recovered.<br />Be sure the process controls on bottleneck parts are very good, so these parts don&apos;t become defective in later processing. <br />If your bottlenecks are not maintaining a flow sufficient to meet demand and make money, there is only one thing to do. <br />FIND MORE CAPACITY<br />To increase the capacity of the plant is to increase the capacity of only the bottlenecks.<br />Whatever the bottlenecks produce in an hour is the equivalent of what the plant produces in an hour. <br />So ... an hour lost at a bottleneck is an hour lost for the entire system.<br />
  • 32. Balance capacity with demand first, then try to maintain the flow. <br /> The rule we should be following is to balance the flow with demand, not the capacity<br />Bottlenecks govern <br />both throughput and inventory<br />The incentives we usually offer are based on the assumption that the level of utilization of any worker is determined by his own potential,<br />&quot;That&apos;s totally false because of dependency. For any resource that is not a bottleneck, the level of activity from which the system is able to profit is not determined by its individual potential but by some other constraint within the system.&quot;<br />When people give the performance calculation…<br />The numbers were almost always right. <br />However, the assumptions almost always wrong <br />~ YIS//062009 ~<br />
  • 33. Assumptions :<br />Available hours : 600 hr/month<br />X – bottleneck : 600 hr/month<br />Y – nonbottleneck : 450 hrs/month<br />1<br />Y<br />Y<br />If Y keep producing after 450 hours to catch 100% efficiencies, <br />there would be excess inventory in Y<br />If Y only fed by X, the efficiency only 75%<br />Then Y will be starving<br />2<br />
  • 34. X<br />X<br />FG<br />3<br />FG<br />Y<br />Y<br />Constraints no longer in production but in market demand<br />If x = 100% and y= 100%<br />There will be pile inventory in assembly line from Y waiting for X<br />4<br />MARKET ?<br />FG<br />
  • 35. THROUGHPUT  INVENTORY TURNOVER <br />WHAT DETERMINES YOUR LEAD TIME??<br />WASTE<br />~ YIS//062009 ~<br />
  • 36. Cut batch size instead of using <br />Economical Batch Quantity (EBQ) ?? <br />++ overall efficiencies stays solid<br />++ work force more occupied than before<br />++ the parts moved to the next process center faster<br />++ less idle time overall<br />++ work flow is more smoothly than ever<br />More set-ups, the cost of making parts goes up??<br />The measurement assumes that all of the workers in the plant are always going to be fully occupied, and therefore, in order to do more set-ups, you have to hire more people. <br />That isn&apos;t true, in fact it hasn&apos;t really done anything to our actual expenses. <br />We haven&apos;t added any additional cost by doing more set-ups since we haven&apos;t added more people to the payroll – just optimizing the time of people to set-up.<br />In fact, the cost of parts has gone down since we began the smaller batch sizes.”<br />Economic Batch Quantity <br />Q = [2cdr/h(r – d)]½,<br />Q : quantity to be purchased or manufactured, <br />c : cost of processing an order for delivery, <br />d : demand in the period for that stock item, <br />h : cost of holding a unit of stock, <br />r : the rate of production.<br />
  • 37. ATTACK YOUR <br />CONSTRAINTS !!<br />WARNING!!!!<br /> If in the previous steps a constraint has been broken, go back to step 1, <br />but do not allow INERTIA to cause a system&apos;s constraint. <br />IDENTIFY<br />the system&apos;s constraint(s). <br />1<br />2<br />Decide how to EXPLOIT<br />the system&apos;s constraint(s). <br />3<br />4<br />SUBORDINATE everything else to the above decision<br />ELEVATE <br />the system&apos;s constraint(s). <br />~ YIS//062009 ~<br />
  • 38. Most people are reacting rather than planning.<br />USE YOUR <br />LOGICAL THINKING<br />TO ACHIEVE <br />THE GOAL<br />What are we asking for is the ability to answer three simple questions: <br />1. What to change?<br />2. What to change to?<br />3. How to cause the change?<br />
  • 39. SUMMARY<br />~ YIS//062009 ~<br />

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