introducing the theory of constraints john f. devogt, ph.d. professor of management emeritus...
TRANSCRIPT
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INTRODUCING THE THEORY OF CONSTRAINTS
John F. DeVogt, Ph.D.
Professor of Management Emeritus
Williams School of Commerce
Washington and Lee University
Lexington, Virginia
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ABOUT TOC
• TOC applies the methods used by the “hard” sciences to understand and manage the material world of human-based systems including the lives of individuals and organizations.
• TOC comprises a methodology for solving problems and implementing the solution found.
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A B
Which System is More Complex?
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WHAT IS THE DEFINITION OF A
PROBLEM?
• The traditional definition of a problem is a source of perplexity, distress or irritation.
• The TOC/hard science definition of a problem is a conflict between two conditions/observations. (A basic belief in science is that conflicts do not exist in reality; i.e., something is wrong in our understanding.)
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THE THINKING PROCESSES (TP) OF
TOC
• Tools that enable us to use logic to gain an understanding of our reality and then to find ways of improving it.
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BASIC CONSTRUCTS OF THE TOC TP
• Causality: “If…then…”
• Necessity: “In order to…I must…”
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EXAMPLE OF CAUSALITY
• “IF…THEN…”
I get burned.
I touch a hot stove.
I don't get burned
I touch a hot stove
I am wearing an oven mitt.
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EXAMPLE OF NECESSITY
• “In order to…I must…”
Avoid getting
burned.
Do not touch a
hot stove.
Touching a hot stove will
burn me.
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PROCESS OF ONGOING
IMPROVEMENT
• No matter what the subject matter, accelerated improvement involves answering the following questions
– What to change?– To what to change?– How to cause a change?
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ANSWERING THE QUESTIONS
• What to change? Identify the core conflict or problem (the constraint).
• To what to change? Construct a complete solution.
• How to cause a change? Devise plans for implementing the solution and achieving buy-in where necessary.
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EMPLOYING THE TP IN ANSWERING THE QUESTIONS
• What to change? Generic cloud process or Current Reality Tree.
• To what to change? Evaporating Cloud, Future Reality Tree, Negative Branch Reservations.
• How to cause a change? Pre-Requisite Tree, Transition Tree, TOC Buy-In.
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TOOL-TYPES OF THE TP
• Necessity:– Generic Cloud
Process
– Evaporating Cloud (EC)
– Pre-Requisite Tree (PRT)
• Causality:– Current Reality Tree
(CRT)
– Future Reality Tree (FRT)
– Negative Branch Reservation (NBR)
– Transition Tree (TrT)
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WHAT TO CHANGE?
• Both the CRT and the Generic Cloud Process permit us to state the current situation as a conflict that must be resolved if that situation is to be improved.
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The EC Representation of
the Conflict
AThe Objective
BOne Requirement
For A
DOne Requirement
For B
COne Requirement
For A
D’One Requirement
For C
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WHAT TO CHANGE TO?
• Uncover and challenge the assumptions underlying the EC structure.
• Find an injection (change in reality) that effectively destroys an assumption behind an arrow in the EC.
• Build a FRT from that injection.
• Subject the FRT to Negative Branch Reservations.
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HOW TO CAUSE THE CHANGE ?
• The amended FRT will contain more than one injection. For each of these injections, a PRT will answer the question: what currently prohibits its implementation?
• Each PRT requires actions and these are devised through one or more TrTs.
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TOC APPLIED TO BUSINESS
ORGANIZATIONS• Acknowledging and managing the
interdependencies that exist within an organization and among organizations and their effect on flow throughout the entire supply chain.
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COST WORLD VIEW vs. THROUGHPUT WORLD VIEW
• Prime measurement: WEIGHT
• Any improvement of any link is an improvement of the chain.
• Global improvement = sum of local improvements.
• Prime measurement: STRENGTH
• Most improvements of most links do not improve the chain.
• Global improvement = improvement in the constraint(s).
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THROUGHPUT WORLD VIEW (Strength)
• Suppliers, Vendors Functions, Departments, etc. Customers, markets
PULL
FLOW
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WHAT IS THE THEORY OF CONSTRAINTS
(TOC)?
• TO C is the TOC Thinking Processes and the breakthrough, generic solutions that were derived from applying them to specific application areas (e.g., marketing, sales, production, distribution, project management, human relations, etc.).
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