Eugene Taurman wrote:
>Since less time in process can only be obtained by understandings he
>process and making it work right it is also an indication of cost.
>Improving time in process improves cost.
The Theory of Constraints (TOC) has its own opinion on cost. I have come
to understand TOC as applied systems thinking: the local impact of local
improvements, usually measured in allocated cost, does not even give a
hint on the impact on the bottom line of the whole company.
Unless you have identified the systems constraint, the limiting factor,
the weakest link in a chain, it is impossible to judge whether an
improvement in time will improve the system as a whole: strengthening a
link in a chain, that is not the weakest, doesn't strengthen the chain.
TOC (although it contains T - Theory) is much less academic than any
concept based on allocated cost, which can lead you completely astray.
The merit of TOC is the invention of a process, that allows to link local
decisions to the bottom line, to the whole system. And this process is by
far easier than the calculations required today to make judgements based
on cost, like investments, make or buy, product profitability etc.
I strongly recommend to learn about TOC. Although I found any publication
of Eliyahu Goldratt very good reading (and you may want to start with his
first book, The Goal, if you haven't read it yet), I recommend The Theory
of Constraints - Applications in Quality and Manufacturing by Robert E.
Stein as the most complete one, connecting TOC and TQM, or better:
applying TOC in order to focus TQM activities.
Thanks to this list, I came to know about TOC. If this contribution
triggers the start of learning about TOC for others, I am happy that I was
able to pass along what I got from here earlier.
Liebe Gruesse,
Winfried
--"Winfried Dressler" <winfried.dressler@voith.de>
Learning-org -- Hosted by Rick Karash <rkarash@karash.com> Public Dialog on Learning Organizations -- <http://www.learning-org.com>