Theory of Constraints Handbook - James Cox Iii [770]
3Used with permission by E. M. Goldratt (2009). © E. M. Goldratt, all rights reserved.
4There are many fun and insightful exercises that demonstrate the damage of bad multitasking. In our company, we particularly like to use the “paper-tearing” game.
5The way to read a Current Reality Tree is to start from the bottom of the tree upwards. You read “if [statement at the bottom of the arrow] then [statement at the top of the arrow].” If several arrows are tied together with an ellipse, then all the statements tied together at the bottom of the arrows should be read using “if [first statement] and if [second statement], then [statement at the top of the arrow].”
6To better understand this concept relating to production, please read “Standing On The Shoulders Of Giants,” talk to anyone in planning in case S-DBR is implemented in your company, or read Step 4:11 in a Strategy & Tactics Tree for Make-to-Order companies.
7As of today, the only place Goldratt refers to this curve is in his latest Project Management Webcast series. As one would read in “Standing on the Shoulders of Giants,” the representative curve in most production environments is an inverse curve, referred to as the “U curve.” The following explanation is a paraphrase of Goldratt’s explanation of the U curve in “Standing on the Shoulders of Giants.”
8[250 × (1 – 0.11)]/2 is approximately 110 opportunities. Following the formula would have guided us to cut 45 percent of the projects. In reality, we cut 50 percent of the projects, which is practically the same.
9We intend to use the green, yellow, red status indicators, not as part of the POOGI, but as a daily management tool to identify delays early on and focus management attention before it accumulates to a significant delay.
10While we claim low variability is an indication to a flaw in the process affecting the performance of all salespeople, we are not claiming that high variability necessarily indicates that the source of disruption relates to the individual performance of a salesperson. High variability in performance could be a result of different processes applied by salespeople, or that some of the salespeople don’t follow a flawed process. When one experiences high variability in performance, both possible types of disruptions to flow should be explored.
1Send an email to refund@MafiaOffers.com to request your refund. You will be refunded the e-book price of this chapter.
2It is not a strong offer because it can be copied easily. However, it is unusual for such an offer to appear in a book and I sincerely believe that if you spend the time with this material, you can have a positive impact on your business.
3Originally a white paper titled Less is More, revised and now published in Chapter 21 of this Handbook. Copyright © 2010 by Dr. Lisa Lang.
4See Chapter 21 for an updated revision to this white paper.
5Firefighting mode is when you are consumed with emergencies and last minute priorities instead of planned, rational progression and improvement.
6Jayne Smith had similar findings and published them in her book, Creating Competitive Advantage.
7SCAs, USPs, and CVPs are often no more than tag lines.
8You may realize some benefit to applying sales process management or funnel management even when you have a market constraint, but you will experience much bigger benefits with the combination of a Mafia Offer and funnel management. Funnel management (or sales process management) is typically handled by TOC practitioners by applying Drum-Buffer-Rope (DBR) to the sales process. See Chapter 21 or http://www.SalesVelocitySystem.com where these concepts are applied.
9We can typically ask a few questions, depending on the type of operation, and get some idea of the improvements that are possible. However, if you do not have this experience, Fig. 22-1 can serve as a guide.
10I am not saying we would start quoting a 2-week lead time, but that our internal cycle time would