The ultimate improvement cycle : maximizing profits through the integration of Lean, Six SIGMA, and the theory of constraints

Title:

Personal Author:

Sproull, Bob

Publication Information:

Boca Raton : CRC Press, 2009

Physical Description:

xxxviii, 250 p. : ill. ; 24 cm.

ISBN:

9781420090345

Subject Term:

Business logistics

Production management

Six sigma (Quality control standard)

Theory of constraints (Management)

Available:*

Library	Item Barcode	Call Number	Material Type	Item Category 1	Status
Searching... PSZ JB	30000010210688	HD38.5 S67 2009	Open Access Book	Book	Searching... Unknown

Recognizing the need to implement quality and eliminate waste, companies embrace Lean, Six Sigma, or a combination of the two, typically taking a broad approach that seeks to remediate every process, critical or not. When this happens, efforts become distracted, improvements indefinitely delayed, and results mediocre at best.

The Ultimate Improvement Cycle (UIC) integrates Lean, Six Sigma, and the Theory of Constraints into a combined strategy that will help you immediately focus your efforts on those areas that will make the greatest difference. The book presents basic laws of factory physics that show why the UIC delivers significant bottom-line improvement while other initiatives so often fail. It explains to you why focusing your efforts on apparent problems rather than systemic concerns is wasted effort.

Focus on key areas and take improvement to the next level

The Ultimate Improvement Cycle: Maximizing Profits through the Integration of Lean, Six Sigma, and the Theory of Constraintsnbsp;show you how to draw the best from Lean and Six Sigma by employing principles drawn from the Theory of Constraints. This approach will ensure that your effort is focused in the right place, at the right time, using the right tools, and the right amount of resources. This multi-pronged approach addresses cost accounting, variation, waste, and performance measurements. But most importantly, it focuses your organization on the right areas to optimize.

Applying years of hands-on work in many environments, Bob Sproull has developed a unique proven method that capitalizes on a time-release formula for evoking the key tools that improvement requires. He shows you how to take advantage of the cyclical nature of improvement to implement change that is perpetually effective, and hisnbsp;approach does not require more resources than you have on hand. Although originally developed in manufacturing, the UIC works equally well in any environment whether it be manufacturing or service-oriented, including Maintenance, Repair and Overhaul (MRO) and Critical Chain Project Management (CCPM).

Author Notes

Kennesaw, Georgia, USA

Preface	p. xi
Acknowledgments	p. xv
Introduction	p. xvii
1 The Lean, Six Sigma, and Theory of Constraints (TOC) Improvement Cycles	p. 1
Reviewing the Current State of Improvement Initiatives	p. 2
Reviewing the Data	p. 2
Asking the Right Question(s)	p. 3
Why Lean and Six Sigma Fail	p. 4
Failing to Focus	p. 4
Failing to Recognize a Leverage Point	p. 5
The Drawbacks of TOC	p. 6
What TOC Is	p. 7
Identify the System Constraint(s)	p. 8
Decide How to Exploit the System's Constraint(s)	p. 9
Subordinate Everything Else to the Above Decision	p. 9
Elevate the System's Constraint(s)	p. 9
If in the Previous Steps a Constraint Has Been Broken, Go Back to Step 1, but Do Not Allow Inertia to Cause a System Constraint	p. 10
What TOC Is Not	p. 10
2 Introducing the Ultimate Improvement Cycle (UIC)	p. 11
UIC	p. 12
Identify, Define, Measure, and Analyze the Process	p. 13
Create Stability	p. 15
Create Flow and Pull	p. 15
Control the Process to Sustain Gains	p. 15
The Objectives of UIC	p. 16
Accomplishing Each Step of the UIC	p. 16
Step 1 Identify	p. 18
Step 2 Define, Measure, and Analyze	p. 23
Step 3 Improve	p. 25
Step 4 Control	p. 27
3 The Value Stream, a Scheduling System, and Performance Metrics	p. 31
Identifying the Value Stream	p. 32
Why Value Stream Mapping Works	p. 32
Knowing What to Map	p. 33
Identifying the Current Constraint	p. 35
Identifying the Next Constraint	p. 37
An Example Identifying the Constraint(s)	p. 37
Identifying the Production Scheduling System	p. 44
Identifying Performance Metrics	p. 46
The Purpose of Performance Metrics	p. 46
Financial Metrics	p. 48
Knowing Which Metrics to Track	p. 49
Metrics for Nonconstraint Operations	p. 49
Managing the Interaction of Constraints and Nonconstraints	p. 51
Product Flowing from a Constraint Resource to a Nonconstraint Resource	p. 51
Product Flowing from a Nonconstraint Resource to a Constraint Resource	p. 52
Product Flowing from a Nonconstraint Resource to a Nonconstraint Resource	p. 52
Product Flowing from a Constraint Resource to Another Constraint Resource	p. 53
Product Flowing from a Constraint and a Nonconstraint to an Assembly Operation	p. 53
External Market Constraints	p. 53
4 Finding Waste in the Constraint	p. 57
Identifying Waste	p. 58
Basic Tools and Techniques for Locating Waste	p. 59
Time and Motion Study	p. 59
Spaghetti Diagram	p. 60
Reviewing the Common Wastes	p. 61
5 Reducing Variation and Defects	p. 65
Measuring Variation	p. 65
Measurement System Variability	p. 66
Effects of Variation	p. 69
Cycle Time (C/T) and Processing Variability	p. 70
Fundamental Points to Remember	p. 71
Variability Is a Fact of Life	p. 71
There Are Many Sources of Variability in Manufacturing Systems	p. 71
The Coefficient of Variation Is a Key Measure of Item Variability	p. 71
Variability Propagates	p. 72
Waiting Time Is Frequently the Largest Component of C/T	p. 72
Limiting Buffers Reduces C/T at the Cost of Decreasing Throughput (TP)	p. 72
Variability Pooling Reduces the Effects of Variability	p. 72
The Origin of Variability	p. 72
Natural Variability	p. 73
Random Outages	p. 74
Setups	p. 75
Operator Availability	p. 75
Recycle	p. 75
Flow Variability	p. 75
Variability Pooling	p. 76
Laws of Variability	p. 77
Primary Points, Conclusions, and Principles of Variability	p. 77
Defect Identification	p. 79
6 Exploiting the Current Constraint	p. 81
Waste Reduction	p. 82
A Waste Example	p. 82
Implementing 5S Workplace Organization (WPO)	p. 84
Drum-Buffer-Rope (DBR) Scheduling	p. 85
The Three Elements of DBR	p. 86
Improvement through Buffer Management	p. 88
Implementing Visual Controls	p. 89
Designing and Implementing Work Cells	p. 90
Cellular Manufacturing 101	p. 91
Achieving One-Piece Flow	p. 91
The Effect on Variation	p. 92
Changeover Time Reduction	p. 96
Performing a Setup Analysis	p. 97
Converting Internal Setup to External Activities	p. 97
Creating a Standardized Work Method	p. 97
Improving Continuously	p. 98
Practice Makes Perfect	p. 98
Variation Reduction	p. 98
Effectively Utilizing Control Charts	p. 99
Using Designed Experiments to Reduce Variation	p. 100
Defect Reduction	p. 101
Standardized Work	p. 102
Understanding the Data	p. 102
Developing Standardized Work Methods	p. 103
Reducing C/T	p. 104
C/T Example	p. 105
Little's Law and C/T	p. 107
Keeping C/Ts Short	p. 108
Effectively Utilizing Small Batch Operations	p. 113
Overall Equipment Effectiveness (OEE)	p. 115
Breakdown Losses	p. 116
Setup and Adjustment Losses	p. 116
Reduced Speed Losses	p. 117
Idling and Minor Stoppage Losses	p. 117
Quality Defects and Rework Losses	p. 117
Start-up (Yield) Losses	p. 117
Putting It All Together	p. 118
The Human Component	p. 120
Reducing Equipment Breakdown	p. 122
Responsibilities of Operators	p. 123
Responsibilities of Maintenance Personnel	p. 124
Maintainability	p. 124
Deterioration Prevention through Autonomous Maintenance	p. 125
Predictive Maintenance and Equipment Reliability	p. 130
Predictive Maintenance	p. 130
Equipment Reliability	p. 131
The Plan for Exploiting the Constraint	p. 132
7 Reducing Waste and Variation in the Current Constraint	p. 137
Constraint Improvement Plan Execution	p. 137
The Power of Involvement	p. 138
Learning to Work as a Team	p. 139
Stage 1 Forming	p. 139
Stage 2 Storming	p. 140
Stage 3 Norming	p. 140
Stage 4 Performing	p. 140
Educating Your Team	p. 140
Teaching about Constraints	p. 141
Introducing Drum and Subordination	p. 141
Explaining Throughput Accounting (TA)	p. 141
Taking a Scientific Approach	p. 142
Talking about Teamwork and Urgency	p. 142
Learning to Communicate	p. 142
8 Subordinating Nonconstraints to the Current Constraint	p. 145
Identifying a Nonconstraint Operation	p. 145
Subordinating Nonconstraints to Constraints	p. 146
Knowing What You Gain by Subordinating Nonconstraints to the Constraint	p. 147
Going about the Business of Subordinating Nonconstraints to the Constraint	p. 148
Asking Basic Questions	p. 149
Taking Action	p. 150
Creating a Plan	p. 151
9 Line Balancing and Flow Optimization	p. 153
Avoiding a Perfectly Balanced Line	p. 153
Looking at a New Type of Balance	p. 154
Accepting an Unbalanced Line	p. 156
One-Piece Flow and Line Balancing	p. 156
10 Optimizing the Constraint Buffer and Pulling in the Nonconstraints	p. 159
Scheduling Production	p. 159
Push Environment	p. 160
Pull Systems	p. 162
Optimizing the Constraint Buffer	p. 162
Designing a Pull System	p. 163
Three First Steps	p. 163
Kanban versus Constant Work-in-Process (CONWIP) Systems	p. 164
Establishing Acceptable Levels of Quality	p. 166
Making the Argument: Push or Pull?	p. 167
CONWIP Factory Physics Laws	p. 167
11 Elevating the Constraint and Implementing Protective Controls	p. 173
Elevating the Constraint	p. 173
Increasing Capacity	p. 174
Protective Controls	p. 176
12 Breaking the Current Constraint	p. 179
Finding Alternatives	p. 179
Considering the Alternatives	p. 180
13 Sustaining the Gains with Protective Controls	p. 185
Reviewing Common Protective Controls	p. 185
Flag Audits	p. 187
Pacing Sheets	p. 188
Other Types of Audits	p. 190
14 System Constraints and Problems	p. 191
Types of Constraints	p. 191
Market Constraints	p. 192
Quality	p. 192
On-Time Delivery	p. 192
Customer Service	p. 193
Cost	p. 193
Resource/Capacity Constraints	p. 193
Material Constraints	p. 194
Supplier/Vendor Constraints	p. 194
Financial Constraints	p. 195
Knowledge/Competence Constraints	p. 195
Policy Constraints	p. 195
Organizational Problems	p. 196
An Overview of Logical Problem Solving	p. 197
Solving for Root Causes	p. 198
Constructing a Current Reality Tree (CRT)	p. 199
Define the System Boundaries, Goals, Necessary Conditions, and Performance Measures	p. 199
State the System Problem	p. 200
Create a Causes, Negatives, and Whys Table	p. 200
Convert All Negatives, Whys, and Causes to CRT Entities (Graphic Blocks)	p. 204
Identify and Designate the Undesirable Effects (UDEs)	p. 204
Group the Graphic Blocks into Clusters	p. 204
Connect the Causes, Negatives, and UDEs	p. 205
Group Related Clusters Together	p. 205
Scrutinize and Finalize the Connections	p. 206
Look for Additional Causes	p. 210
Redesignate UDEs	p. 211
Look for Negative Reinforcing Loops (NRLs)	p. 213
Identify All Root Causes and a Core Problem	p. 213
Trim Nonessential Graphic Blocks	p. 214
Choose the Root Cause to Attack	p. 214
Resolving Conflicts	p. 215
Types of Conflict	p. 215
Conflict Resolution Diagram (CRD)	p. 216
The Future Reality Tree (FRT)	p. 218
Define the Desired Effects	p. 218
Formulate the Basic Injection of the FRT	p. 219
Incorporate Any Other Elements Already Developed	p. 220
Start Filling in the Gaps between the Desirable Effects and the Basic Injections	p. 220
Look for Opportunities to Build in Positive Reinforcing Loops	p. 220
Search for Possible Negative Branches	p. 220
A Few Reminders about FRTs	p. 220
15 Establishing the Environment for Change	p. 225
Little's Law	p. 226
Prerequisite Beliefs	p. 227
Recognizing the Power of Leverage and Focus	p. 228
Subordinating Everything to the Constraint	p. 228
Continuously Improving	p. 229
Involving Everyone	p. 229
Abandoning Outdated Metrics	p. 229
Reducing Waste and Variation	p. 230
Embracing Problem Solving	p. 230
Accepting That Constraints Can Be External or Internal	p. 230
Embracing Systems Thinking	p. 231
Endnotes	p. 233
About the Author	p. 237
Index	p. 239

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Table of Contents