We also discussed the impact of buffers on the flow of products through the system. In today's post we will discuss the next steps in the Ultimate Improvement Cycle (UIC). As a reminder, this material is taken from my newest book, The Focus and Leverage Improvement Book - Locating and Eliminating the Constraining Factor of Your Lean Six Sigma Initiative. published by Routledge/Productivity Press.
Steps 3a, 3b, and 3c
Just as a reminder, here is the layout of the Ultimate Improvement Cycle and as you can see, step 3a instructs you to develop a plan on how to subordinate non-constraints to the current constraint. In step 3b you are instructed to execute the plan you just developed while in step 3c you are instructed to implement your Drum Buffer Rope management system.
In Step 3a, which is a very
important step, we must put together and document a coherent plan on how we are
going to synchronize flow through the system.
This will include our DBR plus Buffer Management. In Step 3b and 3c, we must come away with a
well-functioning and optimized safety buffer that results in WIP being
minimized throughout the total system, in order to optimize the flow of parts
through our processes and system.
Steps 4a, 4b, and 4c
Step 4a states that we must develop a plan for elevating the current constraint if necessary and then define protective controls using Throughput Accounting. In Steps 4a, our
deliverable is the development of a coherent sustainment plan that optimizes
our process capability and control. Goldratt’s
fourth step tells us, if necessary, we must elevate the constraint. Increasing
the capacity of the constraint can be done in a variety of ways like, using
overtime, adding resources, purchasing additional equipment, etc. One thing you
must keep in mind when you are elevating the constraint, is what will happen
when you are successful with this elevation. Remember back in Step 1, we said
that you should identify both the current and next constraint? We did this for
a reason.
Suppose you have decided
that in order to elevate the constraint, you must purchase a new piece of
equipment. Your justification should only demonstrate the throughput
improvement up to the limit of the next constraint. That is, if your current
constraint is currently producing 5 parts per hour, and you are purchasing a
new machine that will double that to 10 parts per hour, then this improvement
is only correct, if the next slowest resource is at 10 parts (or above) per
hour. If, for example, the next constraint in the process is only producing 7
parts per hour, then you really can only claim a gain in throughput of 2 parts
per hour for the new equipment. All we
are saying is that you must make sure you consider the total process, when
making you decision on how to elevate the current constraint.
What we should end up with
from Step 4b is a complete understanding of our new capacities and financial
gains from using Throughput Accounting.
Finally, in Step 4c, we should have our sustainment actions in place and
functioning well, with sound financial decisions being made. The final step, Step 4c, in the UIC, is to
Implement controls to sustain the gains. Sustaining the gains is the hallmark
of great organizations, so how do we do this.
Of course, if you have
chosen the right performance metrics, and you’re tracking them religiously,
this is one way, but is it the best way? One of the most effective tools to
protect and preserve your accomplishments is by using a simple process audit. A
typical process audit is a series of questions asked to the line leader and/or
supervisor to demonstrate the status of the process. These questions should be
focused upon how elements of your new process are working and to demonstrate
that they are being used as intended.
With any luck, by following
the steps I’ve presented, you will have increased the capacity of your
constraint to meet the demands of the marketplace. If this is not the case,
then other more extreme actions must be taken which usually involve spending
some money. You have eliminated much of the waste and reduced variation, both
of which have had a positive impact on cycle time and throughput, but you’re
not quite there yet as far as producing enough product.
You have just completed one
revolution of the Ultimate Improvement Cycle and things should be greatly
improved. Your throughput has increased, your cycle times are reduced, your
quality is better, there is less variation and uncertainty, your on-time
deliveries are much better, and your bottom line is much healthier. Don’t stop
here! Move on to your next revolution
and start the process all over again. This is your new Process of On-Going
Improvement…your POOGI. Good luck!
In this series of posts, I have laid out the foundation of the Ultimate Improvement Cycle. In my next post I will begin a discussion on how to implement the UIC.
Bob Sproull
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