Critical Chain - Eliyahu M. Goldratt [37]
"I didn't, until now," Rick admits.
"Interesting," is the only word Jim is willing to say.
Johnny waits for the murmur to quiet down. "At this point I'll stick to physical constraints. They are less important but easier to understand. ‘Strengthen the weakest link,' we said. Before I write the second step, I would like to highlight that there are two different ways to strengthen a bottleneck. One is to simply add more capacity, by hiring more people or buying more machines. But there is another way. To squeeze the maximum from the capacity we already have. Make sense?"
When he gets agreement, he continues, "Since TOC accepts ‘controlling cost' as an absolute necessary condition, no wonder that it elects the second step to be: Decide how to EXPLOIT the system's constraint(s).
"What next? Let's not forget that in the throughput world the linkages are as important as the links. Which means that if we decided to do something in one link, we have to examine the ramifications on the other links. Once again, it's quite easy. Our intuition is in the throughput world. Always was. Let me demonstrate it to you."
He points to his "volunteer" and tells him, "You'll be the bottleneck. Do you mind? It means that you are most important, the throughput of the entire company depends on you. It also means that you are in the hot seat."
"I'm used to the hot seat."
"Fine. Now let's suppose that when you try, really try, you can produce ten units an hour. No more. Okay?"
Johnny picks another victim. He picks Pullman. "And suppose that you are a non-bottleneck. You can easily do twenty units an hour. But whatever you do, before we can sell it, it must be further processed by our bottleneck. On an ongoing basis, how many units per hour should you produce?"
"Ten units," Pullman says without hesitation.
Johnny repeats the description of the scenario and asks again, "Everybody tell me. How many units an hour should this gentleman produce? Everybody!"
"Ten," comes the roaring answer.
"What you said is the third step." And while talking, he writes it down. "Step three: SUBORDINATE everything else to the above decision. If we can squeeze only ten units from the bottleneck there is no point in doing more on the non-bottlenecks. Now, if this first gentleman is still a bottleneck and we do want more throughput, we must lift some of the load from his shoulders. Even if it means buying more machines or hiring more people."
When everybody agrees, he writes the fourth step: ELEVATE the systems' constraint(s).
Rick carefully copies the steps. The logic is impeccable. It must be applicable for project management as well. Exactly how? It's not clear. He will have to think about it later.
Johnny puts down the marker and moves to the front of the stage. "This is not the last step. And you all, intuitively, know it. Here is our chain." In the air Johnny stretches an imaginary chain between his hands. "Here is the weakest link. I strengthen this link. The whole chain becomes stronger. I strengthen it again, the chain becomes even stronger. I strengthen it again, Nothing happens. Why?"
Many people answer.
Johnny summarizes, "It's not the constraint anymore. So, I have to avoid inertia and go back to step one. Have you noticed something fascinating?"
He pauses, but nobody volunteers to read his mind.
"We have found the process to focus. This is the focusing process of the throughput world. But at the same time, do you agree with me that these steps are also the ‘process of on-going improvement'?" Fascinating, isn't it? In the throughput world, focusing and process of on-going improvement are not two different things, they are one and the same."
"Interesting," Rick whispers to Jim.
"No, Rick, Johnny is right. It's fascinating."
"Let me remind you," Johnny returns to the podium, "that I still owe you something. I owe you the proof that there is no acceptable compromise between the cost world and the throughput world. Remember? Now it's easy. Really