Theory of Constraints Handbook - James Cox Iii [338]
Providing strong technical support and reassurance—Critical Chain software is the only software that directly touches people’s work and corporate interaction (even on a daily basis)
Today, CCPM is in widespread use throughout the company, continuing to contribute tremendous success. For example:
In 2007, as a new public company, First Solar had to comply with Sarbanes-Oxley financial control requirements. Using CCPM, the company successfully adapted all financial controls in less than one year, earning recognition from the external auditors, Price Waterhouse Coopers, for the fastest error-free implementation the team had ever seen.
In 2009, the MIS organization doubled the number of projects completed in one year, using CCPM to manage their large project portfolio.
Implementing the Proven TOC Toolset
Once the Throughput-driven culture is established, and early success is celebrated, the remainder of the TOC toolset has fertile ground for implementation. What follows is a description of some of the embedded applications.
Drum-Buffer-Rope
When the first new plant was designed, BM was embedded and automated as best as possible. Pacing resources were identified, constraint and feeding buffers were established, and robots were deployed to execute most of the BM tasks. Combined with the use of Six Sigma applications to eliminate process variation, line utilization is consistently in the high 90-percent range. One aspect that really helped to validate line performance is the extensive use of simulation modeling. Since TOC is all about the behavior of large systems, a key requirement for successful change is use of good simulation models. It provides:
Insight into how the system will behave before actual implementation.
Reassurance to all involved that intended changes will work.
The ability to test all options, thereby ensuring strong buy-in.
Buffer Management
To leverage the application of DBR, the manufacturing team under the leadership of the plant manager, Todd Spangler, created the TOC Information System (TOCIS). This system enables management to monitor the performance of any manufacturing line anywhere in the world, in real time. It displays Throughput rates, current constraints, buffer inventories, and yield performance. All data are generated directly from the manufacturing lines and represent harsh reality.
In addition, the information is projected onto the factory walls in a simple graphic format for all to see. This has galvanized the attention of operators and supervisors alike, since team performance is unvarnished public knowledge.
The Role of TOC’s “Thinking Processes” at First Solar
The TOC thinking tools are used to understand the changes to First Solar’s current reality, to identify the core conflicts and assumptions that need to be understood, and to build and validate the logic for desired future reality. The First Solar management team uses these tools both as a day-to-day management tool in many instances, as well as to develop large-scale business strategy. In 2009, the company deployed the corporate strategy development and review process by having each operational unit present the current realty, injections, and future reality to the top management team. This enabled:
Focused discussion around the high-impact issues.
Deep common understanding of the way respective business systems behave.
Alignment and coordination of work across business units.
A large contingent of upper- and mid-level managers has been educated in the use of the TOC TP, as has the CEO and some members of the Board of Directors. In 2009, the use of S&T trees was initiated to crystallize, condense, and communicate key strategic initiatives.
What Has Made TOC Work at First Solar?
There are a number of reasons why the holistic implementation of TOC has been successful and sustainable:
TOC is simply a means to an end and not an