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to become Lean—allowing more projects to reduce their cycle time. There are improvements already developed through the TOC Project Management (TOC PM) methodologies. Through TOC PM, the alignment of the system of systems is already established. A portfolio’s work is pipelined (synchronized) in accordance with capacity of the organization. More realistic, but shorter schedules are created by first planning the work as more of the perfect process called Network Building. Inherent in this process is the identification of variability. The assignment and execution of tasks based on the synchronized project’s Critical Chain schedules allows the work of the project to flow value towards the customers (Fig. 6-17). Capturing actual to plan and focusing improvement allows more effective utilization of resources to the tasks that drive project cycle time. Through over 20 years of applying the techniques of TOC PM to different project environments, we see the value of driving out waste—faster and faster projects, less compromises, and more capacity freed up.

FIGURE 6-17 Tasks flow toward the customer. ©1991–2010 Avraham Y. Goldratt Institute, LP. All rights reserved.

References

Jacob, D., Bergland, S., and Cox, J. 2009. VELOCITY: Combining Lean, Six Sigma and the Theory of Constraints to Achieve Breakthrough Performance. New York: Free Press.

Ohno, T. 1988. Toyota Production System: Beyond Large-Scale Production. New York: Productivity Press.

Saxe, J. G. 1873. “The Blind Men and the Elephant” in The Poems of John Godfrey Saxe. Complete Edition. Boston, MA: James R. Osgood and Company, 77–78.

Womack, J. P. and Jones, D. T. 1996. Lean Thinking. New York: Free Press.

About the Author

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 bottom-line 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.

SECTION III

Drum-Buffer-Rope, Buffer Management and Distribution

* * *

CHAPTER 7

A Review of Literature on Drum-Buffer-Rope, Buffer Management and Distribution

CHAPTER 8

DBR, Buffer Management and VATI Flow Classification

CHAPTER 9

From DBR to Simplified-DBR for Make-To-Order

CHAPTER 10

Managing Make-To-Stock and the Concept of Make-To-Availability

CHAPTER 11

Supply Chain Management

CHAPTER 12

Integrated Supply Chain

* * *

This section makes clear the fact that Constraints determine the performance of a system. Identifying the constraint, then knowing how to