36 - Theory of Constraints/Lean/Six Sigma Integration

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McGraw Hill Professional, Apr 8, 2010 - Business & Economics - 1216 pages
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The definitive guide to the theory of constraints

In this authoritative volume, the world's top Theory of Constraints (TOC) experts reveal how to implement the ground-breaking management and improvement methodology developed by Dr. Eliyahu M. Goldratt. Theory of Constraints Handbook offers an in-depth examination of this revolutionary concept of bringing about global organization performance improvement by focusing on a few leverage points of the system. Clear explanations supplemented by examples and case studies define how the theory works, why it works, what issues are resolved, and what benefits accrue, and demonstrate how TOC can be applied to different industries and situations.

Theory of Constraints Handbook covers:

  • Critical Chain Project Management for realizing major improvements in delivering projects on time, to specification, and within budget
  • Drum-Buffer-Rope (DBR), Buffer Management, and distribution for maximizing throughput and minimizing flow time
  • Performance measures for applying Throughput Accounting to improve organizational performance
  • Strategy, marketing, and sales techniques designed to increase sales closing rates and Throughput
  • Thinking Processes for simple and complex environments
  • TOC methods to ensure that services actions support escalating demand for services while retaining financial viability
  • Integrating the TOC Thinking Processes, the Strategy and Tactic Tree, TOC measurements, the Five Focusing Steps of TOC, and Six Sigma as a system of tools for sustainable improvement
 

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Contents

Introduction
1067
Lean
1068
Six Sigma
1069
Theory of Constraints TOC
1071
Discords that can Block the Effective Integration of TOC and Lean Six Sigma LSS
1072
Work Behaviors
1073
Material Release
1075
Replenishment System
1076
TOCLSSFully Integrated TOC Lean and Six Sigma
1078
References
1080
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About the author (2010)

Since 1986, AGI-Goldratt Institute has enabled organizations to better align the way they operate with what they are trying to achieve—strategic bottom-line results. AGI is the birthplace of constraint-based techniques and solutions for business success. Many organizations and consultants trace their roots back to AGI not only for TOC, but also for how TOC integrates with other improvement methods. AGI provides its clients with rapid, bottom-line results with what it calls VELOCITY—a powerful business approach combining speed with direction. VELOCITY consists of three pillars: TOC, the system architecture; TOCLSS, the focused improvement process; and SDAIS, the deployment framework. SDAIS (Strategy-Design-Activate-Improve-Sustain) begins with creating and then executing the strategic roadmap to ensure that business processes are designed and aligned to achieve the strategy. Once designed, the business processes are activated to allow the organization to operate in a stable, predictable manner with less investment and organizational churn. Once stable, focused system improvements are applied to increase sustainable bottomline results. Execution management tools and transfer of knowledge enable each aspect of SDAIS and serve as the foundation for self-sufficiency and sustainment. AGI has expertise in TOC, TOCLSS, and SDAIS, with years of experience adapting each of these elements to meet the unique needs of its clients, regardless of size or industry. AGI excels at leading organizations through successful business transformations by providing business assessment, implementation support, execution management tools, training, and mentoring. We are motivated by making the complex manageable and enabling our clients’ selfsustaining success.

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