The goal powerpoint

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    The GoalTuesday

    February 11th, 2014

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    Different Perspectives

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    Case Studies

    Questions?

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    Agenda

    Introduction

    The GoalVideo Version

    Discussion Examples

    Wrap Up!

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    So what is a the goal of a

    company?

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    The Goal

    First published in 1984

    About 260 Pages

    Strong belief in

    Continuous

    Improvement

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    The Goal - Today

    Third Edition

    4 million sold

    The story is nowOver 335 pages

    The Appendices are

    over 75 pages Loads of feedback!

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    The Goal

    Three sections to the new book

    The story

    Q&A session with Goldratt

    Pages 349 to 384

    An article by Goldratt

    Standing on the Shoulders of Giants

    Pages 385 to 408

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    The Video Version

    About 45 minutes

    Covers the main points

    Much of the family issues are left out!

    The Goal

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    Video

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    Question #1

    If the average output of each of 5 steps in aprocess is 10 units per hour why dont we get 10

    finished parts per hour?

    Question #2

    Is our world deterministic or stochastic?

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    Question #3

    Why is efficiency not important?

    Question #4

    What are the five steps ?

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    The Five StepsExisting Systems

    1. Identify the core problem or constraint

    2. Decide how to exploit the Systems

    Constraint

    3. Subordinate everything else to the above

    decision

    4. Elevate the systems constraint(s)

    5. Return to step one!

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    Question #5

    What happens to the Five Steps when Herbieturns out to be a company policy or procedure?

    Question #6

    What is through put?

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    Question #7

    What do our customers (students) complainabout most?

    Question #8

    What is a constraint on your case team?

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    Dice Game

    You will operate the Dice Game in the Discussion

    Sections

    Both The Goal and Velocity feature the dice

    game

    The purpose is to illustrate, in a way you

    remember, that variability among your

    processes must be addressed

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    Examples

    Hitachi Tool Engineering Example

    Taken from The Goal Page 385

    Toyota Production System (TPS)

    Lean manufacturingbut less than 20% of

    Japanese industry apply TPS why?Hitachi tried several times to implement the TPS

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    The lesson from Toyota

    TPS is restricted to relatively stable

    environments

    Most environments suffer from instability, and

    Relatively unstable environments have much

    more to gain from better flow than even

    stable environments.

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    Hitachi

    20,000 end items (cutting tools)

    Constantly introduced new tooling families

    (every six months)!

    Tried to implement the TPSfailed

    In 2000 started to implement the DBR conceptand focused on time

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    Results

    First of four plants

    On time shipment from 40% to 85%

    Cut WIP and lead time in half

    Ship 20% more product with same labor force

    Due to supply chain impact increased sales 20%

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    ExampleCustomer Supply Chain

    Gasket maker

    Major customer formed a partnership

    Pull any gasket on Monday

    Vendor kept On-hand balance for every gasket

    Win-Win

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    ExampleSheet Metal

    Vendor

    Major customer was buying product from

    China

    Realized needed to compete on TIME

    Negotiated a partnership on the 10 top itemsto start.

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    What is next?

    TPS and Six Sigma

    Shifting to a TIME

    basis

    Shifting to selling a

    service which

    includes your

    product

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    Summary

    Case #1 Presentations Start next week!

    Ask the questions this week of your TA/UCAs

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    There is always anotherpoint of view!