We start once again by using our necessity based logic syntax, “In order to have Production scheduled to utilize available capacity (Box B), I must have Production scheduled based on the “push” system (Box D), because…?”
1. Production needs to be busy ALL the time. If they aren’t are efficiency metrics will
drop outside of an acceptable range.
2. Company policy mandates the efficiency measure. Following company policy is important. If it wasn’t important we would not have to follow any policies.
3. Production management bonuses are tied to efficiency. If we didn’t use efficiency as a bonus measure management would not be motivated to get better.
4. Higher efficiency generates higher ROI. The Returned On Investment must there. Otherwise is was a poor investment.
Transfer these
assumptions to the CRD
These assumptions are
the reasons why the arrow between B and D seems valid. Either why you, or someone else, thinks the
necessary condition “must” be there. Now look for the
possible injections, ask yourself “What must exist in current reality for the
assumption to no longer exist, or to go away?”
Possible injections:
1. Production Maximized
to synchronize throughput. If efficiency is eliminated and the system is
synchronized for throughput then, system benefits will be achieved.
2. Company policy
changed to a throughput/profit measure. Companies create policies and they can also
change them.
3. Bonuses are
determined based on throughput. Just like polices and procedures the company
measures can also be changed. Measure
the right thing to get the right results!
4. Change from cost measure
to throughput. A radical change in measures from Cost
Accounting to Throughput accounting.
Eliminate efficiency and measure system throughput.
Transfer these assumptions to the CRD
Again, these
assumptions are the reasons why the arrow between A à C seems valid.
Either why you, or someone else, thinks the necessary condition “must”
be there. Now look for the
possible injections, ask yourself “What must exist in current reality for the
assumption to no longer exist, or to go away?”
Possible injections:
1. The right product mix
equal maximum profit. Scheduling the right
products at the right time will enhance profitability.
2. Maximize throughput
to increase profits. Maximizing throughput will generate the most profit in
the least amount of time
3. Measure management on
throughput.
Measuring system throughput will still give management a measurement, it
just focuses on the right measure.
Transfer these injections to the CRD
We will continue this
process and surface assumptions for C à
E. This will be the last two entities on
the second leg (bottom) of the CRD.
Now we will continue
this process and surface assumptions for C à
E. This will be the last two entities on
the second leg (bottom) of the CRD.
Following our necessity based logic we say, “In order to have Production
generate the maximum number of products (entity C), I must have Production
scheduled based on the “pull” system (entity E), because…?”
1. Because a “pull” system decrease the production lead-time. The more
synchronized the flow is the faster is will move through the system.
2. Pulling slows the release. Synchronized
pull system
3. WIP will go down. Synchronizing the pull system to the DBR will
cause WIP to be reduced..
Transfer these assumptions to the CRD
Again, these
assumptions are the reasons why the arrow between C à E seems valid.
Either why you, or someone else, thinks the necessary condition “must”
be there. Now look for the
possible injections, ask yourself “What must exist in current reality for the
assumption to no longer exist, or to go away?”
Possible injections:
1. No injection required. This is probably a valid assumption that does not need
to be broken with a suitable injection.
2. Implement a Drum-Buffer-Rope (DBR system. DBR
provides an excellent pull system scenario to control the release of work based
on the system drum beat.
3. WIP will go down. A natural output from a DBR
system is the reduction in system WIP
Transfer these injections to the CRD.
This completes the Assumptions and Injections and in our next posting we will look at the conflict that exists between entities D
and E and surface ways to break this conflict.
Bob
Sproull
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