the goal powerpoint
TRANSCRIPT
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The GoalTuesday
February 11th, 2014
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Different Perspectives
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Case Studies
Questions?
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Agenda
Introduction
The GoalVideo Version
Discussion Examples
Wrap Up!
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So what is a the goal of a
company?
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The Goal
First published in 1984
About 260 Pages
Strong belief in
Continuous
Improvement
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The Goal - Today
Third Edition
4 million sold
The story is nowOver 335 pages
The Appendices are
over 75 pages Loads of feedback!
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The Goal
Three sections to the new book
The story
Q&A session with Goldratt
Pages 349 to 384
An article by Goldratt
Standing on the Shoulders of Giants
Pages 385 to 408
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The Video Version
About 45 minutes
Covers the main points
Much of the family issues are left out!
The Goal
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Video
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Question #1
If the average output of each of 5 steps in aprocess is 10 units per hour why dont we get 10
finished parts per hour?
Question #2
Is our world deterministic or stochastic?
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Question #3
Why is efficiency not important?
Question #4
What are the five steps ?
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The Five StepsExisting Systems
1. Identify the core problem or constraint
2. Decide how to exploit the Systems
Constraint
3. Subordinate everything else to the above
decision
4. Elevate the systems constraint(s)
5. Return to step one!
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Question #5
What happens to the Five Steps when Herbieturns out to be a company policy or procedure?
Question #6
What is through put?
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Question #7
What do our customers (students) complainabout most?
Question #8
What is a constraint on your case team?
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Dice Game
You will operate the Dice Game in the Discussion
Sections
Both The Goal and Velocity feature the dice
game
The purpose is to illustrate, in a way you
remember, that variability among your
processes must be addressed
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Examples
Hitachi Tool Engineering Example
Taken from The Goal Page 385
Toyota Production System (TPS)
Lean manufacturingbut less than 20% of
Japanese industry apply TPS why?Hitachi tried several times to implement the TPS
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The lesson from Toyota
TPS is restricted to relatively stable
environments
Most environments suffer from instability, and
Relatively unstable environments have much
more to gain from better flow than even
stable environments.
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Hitachi
20,000 end items (cutting tools)
Constantly introduced new tooling families
(every six months)!
Tried to implement the TPSfailed
In 2000 started to implement the DBR conceptand focused on time
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Results
First of four plants
On time shipment from 40% to 85%
Cut WIP and lead time in half
Ship 20% more product with same labor force
Due to supply chain impact increased sales 20%
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ExampleCustomer Supply Chain
Gasket maker
Major customer formed a partnership
Pull any gasket on Monday
Vendor kept On-hand balance for every gasket
Win-Win
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ExampleSheet Metal
Vendor
Major customer was buying product from
China
Realized needed to compete on TIME
Negotiated a partnership on the 10 top itemsto start.
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What is next?
TPS and Six Sigma
Shifting to a TIME
basis
Shifting to selling a
service which
includes your
product
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Summary
Case #1 Presentations Start next week!
Ask the questions this week of your TA/UCAs
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There is always anotherpoint of view!