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About the Author
After a successful career in leading large organizations including Director of Operations for a $5 billion enterprise and the Executive Officer for a $750 million aircraft overhaul and repair facility, Daniel Walsh founded Vector Strategies, a TOC-focused company. He and Vector Strategies are recognized experts in developing and implementing powerful strategies that quickly and dramatically improve market presence and profitability. He has worked with companies in the pharmaceutical, construction, engineering, manufacturing, aerospace, and defense industries. Numerous Fortune 100 companies are among his clients, including Textron, IBM, Caterpillar, Boeing, Lockheed, and the U.S. Department of Defense.
Daniel Walsh’s success is based on his extensive experience as an executive and thought leader, as well as his development of innovative and cutting-edge systems architecture and value-added networking techniques. His focus is firmly grounded in the tenet that real and sustainable improvements in an organization must be measured on how successfully they increase profitability through value innovation.
His current efforts are focusing on developing synchronous enterprise value chain solutions in multiple industry sectors. His research and development is centered on identifying the need to identify and leverage the strategic constraints of the enterprise, which is the key to increasing Throughput. This culminated in the development of the Integrated Enterprise Scheduling® (IES®) solution engine. Initial empirical results from deploying the IES® in a dozen large companies over a five-year period have been very promising. Many executives and thought leaders are convinced this may very well be the unified scheduling solution required for maximizing the profit of an enterprise-wide value chain.
Daniel Walsh has been on retainer to the Institute for Defense Analysis, a leading strategic think tank in Washington, D.C. and is a trusted advisor to many senior corporate executives. Currently he is a member of numerous corporate boards and in addition is chairman of the board of the Theory of Constraints International Certification Organization, which is dedicated to setting the standards, testing, and certifying competency in TOC.
CHAPTER 36
Combining Lean, Six Sigma, and the Theory of Constraints to Achieve Breakthrough Performance
AGI-Goldratt Institute
Introduction
As global competition continues to grow, the pressure to improve becomes more and more intense. Executives and managers face many challenges: increase sales, reduce cost, reduce inventory, accurately forecast future demand, find the next market breakthrough, and most of all survive! Although there are many ways to improve, many organizations have invested in at least one of the three most widespread methods of improvement—Theory of Constraints (TOC), Lean, or Six Sigma. In most cases, company experts have spent significant time mastering one of these three and spent time trying to show returns from their investment. As other methodologies came along, pressures shifted to using something else and came across as another program of the