Theory of Constraints Handbook - James Cox Iii [4]
The Role of Protective Capacity and the Usefulness of Maintaining a Capacity Buffer
The Process of Ongoing Improvement (POOGI)
Generic Issues in MTA
MTA for Components
Which Items Fit MTA and Which Fit MTO?
Vendor-Managed Inventory (VMI)
Mixed (MTA and MTO) Environments
Dealing with Seasonality
Problematic Environments for MTA
MTS That Is Not MTA
Implementation Issues
Moving from MTS or MTO to MTA
Software Considerations
References
Suggested Reading
About the Author
11 Supply Chain Management Amir Schragenheim
Introduction: The Current Practice of Managing Supply Chains
Problems with the Current System
The Natural Tendency for Push Behavior
Why Is It Impossible to Find a Good Forecasting Model?
The TOC Way—The Distribution/Replenishment Solution
Aggregate Stock at the Highest Level in the Supply Chain:
The Plant/Central Warehouse (PWH/CWH)
Determine Stock Buffer Sizes for All Chain Locations Based on Demand, Supply, and Replenishment Lead Time
Increase the Frequency of Replenishment
Manage the Flow of Inventories Using Buffers and Buffer Penetration
Use Dynamic Buffer Management
Set Manufacturing Priorities According to Urgency in the PWH Stock Buffers
Why Does a Pull Supply Chain Work Better?
Some of the Finer Points in Managing the TOC Distribution/Replenishment Solution
Managing Product Portfolios
Rules for Setting up Initial Buffer Sizes
Managing Seasonality in the TOC Distribution/Replenishment Model
Known Patterns for Sudden Changes in Consumption
Two Different Changes
Resolving the Forecasting versus DBM Dilemma to Provide Excellent Consumption before, during, and after an SDC
Identifying When an SDC Is Meaningful
Handling of an SDC
Implementing the TOC Distribution/Replenishment Model—How Can Software Help and Is It Really Needed?
Testing the Solution on a Smaller Scale
Simulation
Pilot Project
Managing the TOC Buy-in Process
Actual Results of the TOC Distribution/Replenishment Solution
Summary
References
Recommended Reading
About the Author
12 Integrated Supply Chain Chad Smith and Carol Ptak
Introduction
Identifying the Real Problem—Rethinking the Scope of Supply Chain Management
A Brief History of MRP
Can MRP Meet Today’s Challenge?
The MRP Conflict Today
The MRP Compromises
Actively Synchronized Replenishment—the Way Out of MRP Compromises
1. Strategic Inventory Positioning
2. Dynamic Buffer Level Profiling and Maintenance
3. Dynamic Buffers
4. Pull-Based Demand Generation
5. Highly Visible and Collaborative Execution
Case Studies
Case Study 1: Oregon Freeze Dry
Case Study 2: LeTourneau Technologies, Inc.
Summary
References
About the Authors
Section IV Performance Measures
13 Traditional Measures in Finance and Accounting, Problems, Literature Review, and TOC Measures Charlene Spoede Budd
Introduction
Traditional Cost Accounting and Business Environment
Development of Cost Accounting
Business Environment, First Half of the 20th Century
Business Environment, Second Half of the 20th Century
Accounting’s Response to a 20th Century Changing Environment
Direct or Variable Costing Income Statement
Activity-Based Cost Accounting
Balanced Scorecard
Lean Accounting
Traditional Budgeting, Capital Budgets, and Control Mechanisms
TOC Approach to Planning, Control, and Sensitivity Analysis
Planning
Throughput Control
Sensitivity Analysis
Throughput Accounting Approach to Performance Evaluation
Possible Explanations for the Lack of TOC Literature in Accounting and Finance
Future TOC Accounting/Finance Research Needs
Case Studies and Simulations
Information and Decision Making
Summary and Introduction of Remaining Chapters in This Section
Chapter Summary
Other Chapters Dealing with Performance Measures
References
About the Author
14 Resolving Measurement/Performance Dilemmas Debra Smith and Jeff Herman
Introduction
Do We Measure Too Much?
Why Do We Have Measurements?
Global Metrics
The Constraint Is the Primary Relevant Factor
Profit Maximizing in TOC