Theory of Constraints Handbook - James Cox Iii [5]
Local Metrics
Metric 1: Reliability
Metric 2: Stability
Metric 3: Speed/Velocity
Metric 4: Strategic Contribution
Metric 5: Local Operating Expense
Metric 6: Local Improvement/Waste
Feedback and Accountability Systems
So, How Is the Operational System Performing?
Focusing on Improvement
A Case Study
Summary
References
About the Authors
15 Continuous Improvement and Auditing Dr. Alan Barnard
Introduction
The Goal—Achieving Continuous or Ongoing Improvement
Purpose and Organization of This Chapter
Key Concepts and Definitions
A Historical Perspective—Standing on the Shoulders of Giants
Why Change?
Introduction
The Improvement Gap and Challenges
The Types of Management Mistakes When under Pressure to Change
The Extent and Consequences of the Failure Rate of Change
The Vicious Cycle Related to the High Failure Rate of Change
Summary of Why Change?
What to Change?
Introduction
Finding the Core Conflicts within Continuous Improvement and Auditing
Finding a Simple and Systematic Way to Break Conflicts
Identifying Limiting versus Enabling Paradigms in Continuous Improvement
Summary of What to Change
To What to Change?
Introduction
Criteria to Evaluate a New Solution
Direction of Solution to Breaking the Continuous Improvement Conflicts
Lessons from CI Methods Developed by Ford and Ohno and Other Giants
Importance (and Risks) of Measurements and Incentives
Ensuring the New Direction Addresses All Major UDEs
Potential Negative Branches and How to Prevent Them
Summary of “What to Change to?”
How to Cause the Change?
Typical Implementation Obstacles and How to Overcome These
Using TOC to Focus and Accelerate Lean and Six Sigma Initiatives
Using TOC’s S&T as a CI and Auditing Tool
Summary of How to Cause the Change
Summary of Continuous Improvement and Auditing the TOC Way
References
About the Author
Appendix A—Continuous Improvement Opportunity Templates
16 Holistic TOC Implementation Case Studies Dr. Alan Barnard and Raimond E. Immelman
Introduction
Historical Perspective to Holistic TOC Implementations
The Goldratt Satellite Program
The X-Y Syndrome of Local TOC Implementations
The ″4 × 4″—First Attempt at a Process to Launch a Holistic TOC Implementation
The Viable Vision Initiative
Using TOC’s Strategy and Tactic Tree to Guide Holistic Implementations
Catering for Differences within the Private and Public Sector
Holistic Implementation of TOC in the Public Sector
Background
Designing the Five-Day TOC Workshop and Implementation Process
Proposed Changes to the Traditional TOC TP Analysis Roadmap
Detailed Case Study: Analysis on Solid Waste Management in City A
Current Status of Pilot Projects (by the End of 2009)
Future Application of TOC within the Public Sector
Specific Lessons Learned from All the Public Sector Pilots
Future Research
Holistic TOC Implementation in the Private Sector
The Birth of First Solar Inc.
Theory of Constraints Contribution to First Solar’s Success
Building the Foundation
Unbolting the Existing Systems and Measures
Building on Early Success
Implementing the Proven TOC Toolset
The Role of TOC’s “Thinking Processes” at First Solar
What Has Made TOC Work at First Solar?
Recommendations and Summary
Recommended Good Practices for Implementing TOC Holistically
Summary
References
About the Authors
Section V Strategy, Marketing, and Sales
17 Traditional Strategy Models and Theory of Constraints Marjorie J. Cooper
Introduction
What Is a Business Strategy?
Factors That Comprise Strategy
Criteria for a Good Strategy
Theories of Business Strategy
Ansoff’s Matrix of Four Strategies
Porter’s List
The Resource-Based View
Learning/Emergent Strategies
A Summary of Schools of Strategy
Marketing and Strategy
What Is Marketing Strategy?
Sales and Strategy
Challenges for Strategy and Execution
Inadequate Planning
Inability to Analyze the System
No Theory of Implementation
Conflicts within the System
Conflicting Standards of Performance
Dysfunctional Compensation and Reward Policies
TOC Contributions
Future Research