Theory of Constraints

Pit Crews cut final assembly time in half, giving FMC Technologies “The Racer’s Edge.”

We did a very successful Theory of Constraints Implementation a while back, that incorporated a wide variety of approaches.

Critical Chain Project Management
Process Reengineering
Supply Chain Management

The results were great. So we made a presentation telling our story. Here it is on slide share.

Throughput Accounting; Improving Decision Making

Today, companies are focused on increasing throughput – the rate at which a company generates money through sales. They want to expand products, customer base, markets, and so on. They want to grow as much as possible, as quickly as possible. They do not want to focus on shrinking their company or labor force. Yet, the most commonly used financial tools tell companies to focus on cutting costs in order to maximize profits, making expenses the focus of companies, not sales generation. This often leads management to make decisions that actually harm a company.

Theory of Constraints Supply Chain Management

With all these smart people working on supply chain management initiatives, why are there so few examples of real successful SCM improvements? Why, if management spends millions of dollars on supply chain management technology, aren’t we seeing breakthrough improvements in supply chain efficiency? The key to improve supply chain performance is to treat the supply chain as a system, where efficiency is a by-product of system performance, not a precursor to system performance.

Theory of Constraints Lean Six Sigma Podcast

Last week, I did an interview with Joe Dager of Business 901 on the topic of the integration of Theory of Constraints with Lean and Six Sigma. We discuss how it all fits together and the biggest problem facing managers who want to implement a continuous improvement program.

A “Typical” Theory of Constraints Implementation

You’ve read all of the books on the Theory of Constraints and heard of the terrific successes other achieve with this method.  You may be wondering what a real implementation looks like.  I’ve led nearly 100 implementations and have seen a wide range of companies.  All implementations of the Theory of Constraints will follow this general …

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You don’t have to be a firefighter to deliver on time!

Breakthrough in scheduling simplifies managing a plant, while making it more responsive, improving on time delivery and throughput. Imagine if… Your plant ran on auto-pilot – people know what to do, and they do it! Every resource is synchronized to your customer’s need You deliver every order not only when you promised it, but sooner. Your …

You don’t have to be a firefighter to deliver on time! Read More »

Does Value Stream Mapping Need a Makeover?

The main reason organizations don’t realize maximum output from their capacity is that planning and execution behavior is not aligned with the global purpose of the organization. There are two behaviors that account for this misalignment.  They are: Over-production; Making more than the customer (or the next step) requires. Usually manifested as batching behaviors and Releasing …

Does Value Stream Mapping Need a Makeover? Read More »

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