New Book Part 3

In my last post of this series on my new book, The Secret to Maximizing Profitability - A Business Novel on How to Successfully Combine the Theory of Constraints, Lean, and Six Sigma to Drive Profit Margins to New Levels, I discussed Chapters 3 through 6.  In this post I will discuss Chapters 7 through 11.

In Chapter 7, I present several key learnings for Tires for All, one of which is the importance of selecting and using the right performance metrics. They also learn that the performance metric efficiency, if measured in non-constraints and pushed higher, will do more harm than good. Tom Mahanan becomes even more involved in Tires for All’s improvement effort and begins training the staff on the Theory of Constraints and the new accounting system. Chris Samuels, the head of the local union, is convinced that Tires for All’s new direction will result in a better place for his fellow union employees and even volunteers to lead one of the improvement teams. In this chapter, I explain why it’s so important to have the total involvement of all employees.

In Chapter 8, I present a Theory of Constraints parts replenishment solution that typically results in a 50 percent reduction in parts inventory while virtually eliminating stock-outs. Tires for All learns all about the Theory of Constraints Replenishment Solution, which is a much different way of ordering raw materials and parts necessary to produce their tires and rubber articles. Learning this replenishment method is a real eyeopener for Tires for All, but especially Tom. In this chapter, I present how this solution can be implemented in any type of manufacturing company.

In Chapter 9, I present a different type of planning and scheduling system that is based upon the teachings of the Theory of Constraints. If your company uses an Enterprise Resource Planning (ERP) system, you will see that this method can be integrated with it. Tires for All learns about a new methodology used to manage and use their existing planning and scheduling system. They learn that in a Theory of Constraints environment, production planning and scheduling is done with a tool known as the Drum Buffer Rope, coupled with Buffer Management. They learn that Drum Buffer Rope is designed to regulate the flow of work-in-process through a production line based upon the pace of the slowest resource, the constraint operation. Tires for All also learns that this method contains a shipping schedule, a constraint schedule, and a material release schedule which are all tied to the constraint schedule. Here you will learn how these components all work together to maximize your company’s ability to ship products on time, while minimizing your work-in-process inventory.

In Chapter 10, Bob Nelson, Tires for All’s improvement consultant, explains in detail, how to combine the best of Theory of Constraints, Lean Manufacturing, and Six Sigma. He first introduces what he has christened the Ultimate Improvement Cycle (UIC) as three, interactive concentric circles, one for TOC, one for Lean Manufacturing, and one for Six Sigma. Bob does a masterful job of presenting the first element of the UIC by presenting the basic requirements taken from each improvement method and how best to combine them into a single improvement methodology. He then presents the specific tools and techniques needed for success in implementing the Ultimate Improvement Cycle. In this chapter, I present the details of how these three methodologies can be combined and then present the basic tools to do so effectively.

In Chapter 11, I lay out all the deliverables you should end up with when you successfully implement the Ultimate Improvement Cycle. Bob Nelson continues his explanation of the Ultimate Improvement Cycle by presenting the expected deliverables when this integrated methodology is implemented at Tires for All.

In my next post I will begin with Chapter 12 and continue on through the remainder of my new book.
Bob Sproull