In his
book The Goal, Eliyahu Goldratt effectively uses a story written in a novel
format to walk the reader through the steps necessary to move a manufacturing
organization from the traditional manufacturing concepts to a facility managed
using the concepts of Drum-Buffer-Rope (DBR).
This nontraditional approach through logical thinking is masterminded by
a character named Jonah. Jonah is able
to help Alex Rogo understand the invalid thinking and assumptions being used to
manage his plant and the negative consequences associated with that type of
thinking. By helping Alex focus his
thinking on how the plant is being managed, Jonah helps Alex logically discover
a new and better way. And Drum-Buffer-Rope (DBR) is the centerpiece of this
process.
A system can be defined as a sequence of steps or processes that are
linked together to produce something as an end result. With that definition in mind, it’s easy to
understand how virtually everything can be linked to some kind of a system.
Engineering
organizations have systems, banks have systems and grocery stores have
systems. Almost anything you can think
of is the product of a system. By
design, a system can be as small and unique as two processes linked together,
where the output of one process becomes the input for the next process. Or
systems can be very complex, with many processes linked together, maybe even
hundreds or more. Just because a system
is complex does not mean it can’t be improved—it just means it’s complex, and
that’s OK. Even in a system as simple as
two linked processes, one of those two processes will constrain the other. It’s just the nature of how things work. If a systems constraint did not exist, then
the system should, at least theoretically, be able to produce at infinite
capacity. But infinite capacity is not a
level that is ever achieved from a system.
All systems are restricted, at some point in time, by some type of
output limitation. This limitation is
usually determined by the presence of some kind of system-capacity limit. No matter how good the system is, there is
still only so much it can do. Sooner or
later whatever kind of system is being analyzed, it is will reach its maximum
system capacity and be unable to produce more.
If higher system outputs are required beyond the current capacity, then
the system must be changed.
In my next post we will discuss the impact of variation.
Bob Sproull
4 comments:
Looking forward to it.
Hope it's a learning experience for you!!
Any questions on this series of posts, feel free to send me an email to ras8202@live.com
Waiting for your next post and compare with your books so interesting ...Retired so I try to adapt TOC to Trading ....
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