TLS
Theory Of Constraints + Lean + Six Sigma
- Point of View -
Paris, 3rd of September 2013
Version 1.2
Factories, People & Results
TLS: Theory Of Constraints + Lean + Six Sigma
Combining the best of each approach
Theory Of Co...
Factories, People & Results
TLS: a winning combination
Industrial improvement efforts over the past 20 years have been han...
Factories, People & Results
Table of contents
Theory of Constraints / TOC
Lean Manufacturing
Six Sigma
TLS: the combinatio...
Factories, People & Results
The Theory Of Constraints gained its global recognition because of the success
of the best sel...
Factories, People & Results
Focus on improving the system constraints
that determine overall performance
Factories, compan...
Factories, People & Results
Rules for bottlenecks
• The capacity of the bottleneck determines
achievable due dates and pac...
Factories, People & Results
Control the product flow with the Drum Buffer Rope (DBR) mechanism
Drum
Bottleneck
Resource No...
Factories, People & Results
The 5 step process of on-going improvement of the Theory Of Constraints
1. Identify the constr...
Factories, People & Results
The “Throughput World”:
increasing profits by increasing sales rather than focusing on reducin...
Factories, People & Results
A sequel to The Goal
It’s not luck*
1984
A first novel
The Goal*
1994 2005
A new TOC
service o...
Factories, People & Results
Table of contents
Theory of Constraints / TOC
Lean Manufacturing
Six Sigma
TLS: the combinatio...
Factories, People & Results
Rework
To produce too soon or in excessive quantities with regards to the
market requirements
...
Factories, People & Results
Client Satisfaction
Employee Satisfaction
Right first
time
Just In
Teamwork
The TPS (Toyota Pr...
Factories, People & Results
1. Results
2. Pace
3. Time frame
4. Changes
5. Participation
6. Approach
1. Results
2. Pace
3....
Factories, People & Results
The Toyota “Model” or “Way” has many different facets including a philosophy
16TLS: Theory Of ...
Factories, People & Results
The history of Lean
Lean manufacturing is attributed to the Toyota Motor Company. In the 1950’...
Factories, People & Results
Table of contents
Theory of Constraints / TOC
Lean Manufacturing
Six Sigma
TLS: the combinatio...
Factories, People & Results
Six Sigma is comprised of 3 elements
A goal to reduce process variability to less than 3.4 def...
Factories, People & Results
Objective: 6σ
LSI LSS LSI LSS
Small σLarge σ
The objective of Six Sigma is to reduce the width...
Factories, People & Results
DMAIC: Process of on-going improvement
Define, Measure, Analyze, Innovate/Improve, Control
Def...
Factories, People & Results
Six Sigma Belts (Levels of expertise)
Champion or
sponsor
Master Black Belt
• Act as in-house ...
Factories, People & Results
The history of Six Sigma
Motorola developed Six Sigma en 1986.
The method became well known in...
Factories, People & Results
Table of contents
Theory of Constraints / TOC
Lean Manufacturing
Six Sigma
TLS: the combinatio...
Factories, People & Results
Focus and Leverage:
Concentrate on the 1% of the system that determines 99% of its performance...
Factories, People & Results
“Thinking Processes” in TLS
The “Thinking Processes” of TOC help to:
– Make the logic of the s...
Factories, People & Results
Injecting TOC into a Lean process:
An enterprise, already very Lean achieved a 15% improvement...
Factories, People & Results
Metallurgical Enterprise: >20% improvement in sales in 3 months
Case: a metallurgical factory ...
Factories, People & Results
An excellent case study of TLS in France: les Verreries Brosse
This case study was written up ...
Factories, People & Results
The history of TLS
The origin of TLS could be attributed to a seminal article
published in the...
Factories, People & Results
Table of contents
Theory of Constraints / TOC
Lean Manufacturing
Six Sigma
TLS: the combinatio...
Factories, People & Results
TLS books: 2 business novels
Epiphanized by Bob Sproull & Bruce Nelson (2012)
– While taking t...
Factories, People & Results
TLS reference books:
Profitability with no boundaries by Reza Pirasteh &Robert E. Fox (2010)
–...
Factories, People & Results
Theory of Constraints books:
The Goal by Eliyahu Goldratt
– The first use of the business nove...
Factories, People & Results
Lean Manufacturing books:
The Toyota Way by Jeffrey Liker
– The reference book on the Toyota w...
Factories, People & Results
Six Sigma books
The Six Sigma Way de Pande, Neuman & Cavanaugh
– One of the best reference boo...
Factories, People & Results
On www.linkedin.com:
Group: TLS – TOC Lean Six Sigma
The oldest and most established LinkedIn ...
Factories, People & Results
Useful web link: a information website dedicated to TLS
To get the latest news and use the bes...
Factories, People & Results
Useful Web Links: Sites and blogs
Blog « Focus and Leverage » de Bob Sproull
– www.focusandlev...
Factories, People & Results
Marris Consulting
Paris, France
Philip Marris, the author of this document, is the founder and...
Prochain SlideShare
Chargement dans…5
×

TLS - TOC Lean Six Sigma - English 40 slides 2013

13 442 vues

Publié le

This is a 40 slide "Point Of View" that explains what "TLS" is. It describes each of the elements and briefly presents the integration / combination of the 3 different approaches (Theory Of Constraints + Lean + Six Sigma).

Publié dans : Business, Technologie
1 commentaire
27 j’aime
Statistiques
Remarques
Aucun téléchargement
Vues
Nombre de vues
13 442
Sur SlideShare
0
Issues des intégrations
0
Intégrations
4 046
Actions
Partages
0
Téléchargements
797
Commentaires
1
J’aime
27
Intégrations 0
Aucune incorporation

Aucune remarque pour cette diapositive

TLS - TOC Lean Six Sigma - English 40 slides 2013

  1. 1. TLS Theory Of Constraints + Lean + Six Sigma - Point of View - Paris, 3rd of September 2013 Version 1.2
  2. 2. Factories, People & Results TLS: Theory Of Constraints + Lean + Six Sigma Combining the best of each approach Theory Of Constraints (TOC ) • Focus on improving the system constraints that determine overall performance… • …and in this way significantly boost the return on investment and success of Lean & Six Sigma programs • Increase profits by increasing sales rather than by cutting costs and hence avoid headcount reductions • Developed by Eliyahu Goldratt in the 1980s Lean Manufacturing / Toyota Way • By far the most widespread approach in industry throughout the world • A focus on eliminating all forms of waste 2TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 2 • A focus on eliminating all forms of waste • A multi-dimensional approach: management, Just-In-Time, 5S, Lean Engineering, … • Developed by the Toyota Motor Company in the 1950s, called “Lean” since 1990 Six Sigma • Reduce process variability to 3.4 defects per million occurrences • Mostly implemented using certified experts Green Belts, Black Belts, … • Includes a powerful tool to be used on important and complex problems (Design Of Experiments / DOE) • Promoted by Motorola & General Electric in the 1980s. TLS: TOC + Lean + Six Sigma • Developed in 2006
  3. 3. Factories, People & Results TLS: a winning combination Industrial improvement efforts over the past 20 years have been handicapped by quarrels concerning the relative merits of the different approaches and of the supposed incompatibilities or fundamental differences among them. TLS considers, on the contrary, that we should seek to combine them thereby creating a system that contains the best aspects of each movement. 3TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 3 system that contains the best aspects of each movement. Each school of thought – Lean, Six Sigma & TOC – has proven its effectiveness, otherwise they simply wouldn’t exist In combination they are formidable.
  4. 4. Factories, People & Results Table of contents Theory of Constraints / TOC Lean Manufacturing Six Sigma TLS: the combination of the 3 approaches Appendices 4TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 4 Appendices – The main books to understand TLS – Useful internet links
  5. 5. Factories, People & Results The Theory Of Constraints gained its global recognition because of the success of the best selling “business thriller” The Goal by Eliyahu Goldratt Over 5 million copies sold in 26 languages. Mandatory reading in most universities/MBAs/… Written by Eliyahu Goldratt the founder of TOC & Jeff Cox. The first book of its kind, a novel to explain a new approach to management. Chosen as one of the 25 most influential business books by Time magazine in September 2011. 5TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 5 in September 2011.
  6. 6. Factories, People & Results Focus on improving the system constraints that determine overall performance Factories, companies and other organizations inevitably have unbalanced capacities; there is always a constraint somewhere in the system. One hour lost on that constraint (the bottleneck) = one hour lost for the system = one hour less of finished goods (lost sales) One hour gained on a non-bottleneck is an illusion. 6TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 6 The sum of local optimums is not equal to the global optimum Sometimes referred to as: “99% - 1% focus” (i.e.. more focused than the 80/20 Pareto principle)
  7. 7. Factories, People & Results Rules for bottlenecks • The capacity of the bottleneck determines achievable due dates and paces release of work into the system for maximum throughput.. • Improvement actions (Lean & Six Sigma, …) Rules for non-bottlenecks • Adapt and regulate their activity to the requirements of the bottleneck. • Launch improvement actions on these resources when they are the cause of delays TLS suggests different rules for bottlenecks and non-bottlenecks 7TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 7 • Improvement actions (Lean & Six Sigma, …) and eventually investments are focused on the bottleneck. • The bottleneck is protected from problems in the environment (with a buffer of products) so that it is never starved for work. resources when they are the cause of delays in feeding the bottleneck or generate quality problems. • Convert their excess capacity into flexibility so that the Work In Progress (WIP) and the production cycles can be further reduced.
  8. 8. Factories, People & Results Control the product flow with the Drum Buffer Rope (DBR) mechanism Drum Bottleneck Resource Non-BottleneckNon-Bottlenecks Sets the pace of the system 8TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 8 Protection Finished GoodsY Y Y Y YY Protection XRaw Materials Rope Buffers Defines when to release work into the system (avoids the build up of excess WIP and its associated costs) Defines when to launch a product into the system (avoids the build up of excess WIP)
  9. 9. Factories, People & Results The 5 step process of on-going improvement of the Theory Of Constraints 1. Identify the constraint (bottleneck) 2. Decide how to exploit the constraint 3. Subordinate all other decisions to the above 9TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 9 4. Elevate the performance of the constraint 5. If the constraint has moved (changed) go back to step 1. Warning: do not let inertia slow down or halt this improvement process
  10. 10. Factories, People & Results The “Throughput World”: increasing profits by increasing sales rather than focusing on reducing costs TOC identifies 3 key business indicators: – Throughput: the money produced by sales (sales minus Total Variable Cost) – Inventory: the money invested in the system (not just materials) – Operating Expenses: the money required to convert Inventory into Throughput. – There are referred to as: T, I & O.E. This aspect of TOC is often referred to as the difference between the “Cost World” and the “Throughput World”. The Theory Of Constraints recommends increasing sales to improve profitability rather than by focusing on cost 10TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 10 The Theory Of Constraints recommends increasing sales to improve profitability rather than by focusing on cost reductions. It is especially critical of reduction in headcounts (direct or indirect labor). This aims, among other things, to avoid the vicious downward spiral of improvements in productivity triggering reductions in personnel which then discourage the remaining staff from generating further improvements. TOC is a growth model. This is too often ignored by companies on a Lean journey.
  11. 11. Factories, People & Results A sequel to The Goal It’s not luck* 1984 A first novel The Goal* 1994 2005 A new TOC service offering Viable Vision 2010 The Choice* The TOC Handbook The history of the Theory Of Constraints 11TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 11 A production scheduling software and a « Thoughtware » OPT A new name for this approach Theory Of Constraints or TOC A book that presents a new approach to Project Management Critical Chain* Isn't it obvious* TOC applied to Distribution Death of Eli Goldratt 1970 1988 1997 2008 2011 •Eliyahu Goldratt’s main books NB. The author Philip Marris joined Eli Goldratt’s organization (Creative Output at that time) in 1986, he helped translate the novel The Goal in to French, later in 1994 he published a book in French (Le Management Par les Contraintes ) on TOC applied to manufacturing.
  12. 12. Factories, People & Results Table of contents Theory of Constraints / TOC Lean Manufacturing Six Sigma TLS: the combination of the 3 approaches Appendices 12TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 12 Appendices – The main books to understand TLS – Useful internet links
  13. 13. Factories, People & Results Rework To produce too soon or in excessive quantities with regards to the market requirements Over Production Unnecessary movement Repeating a process or correcting a faulty process Unnecessary movement of products or people The 7 possible sources of waste: the 7 mudas 13TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 13 A product that sits idle awaiting the next operation Unnecessary transport of products movement An action or operation that does not add value to the product Waiting All products, parts and materials over and above what is strictly necessary to fulfill client orders in the quantities required and at the date specified Unnecessary transport Excess work Excess stocks
  14. 14. Factories, People & Results Client Satisfaction Employee Satisfaction Right first time Just In Teamwork The TPS (Toyota Production System) “house” 14TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 14 Production leveling (Heijunka) Stable and standardized operations Visual Management Shared values throughout the organization Quality At the source Just In Time Waste reduction Continuous improvement
  15. 15. Factories, People & Results 1. Results 2. Pace 3. Time frame 4. Changes 5. Participation 6. Approach 1. Results 2. Pace 3. Time frame 4. Changes 5. Participation 6. Approach KAIZENKAIZEN Small changes with long lasting benefits Small but regular improvements Continuous and ever growing Gradual but constant change Everyone participates Team oriented systematic approach INNOVATIONINNOVATION Quick and significant Big stops Intermittent and discontinuous Abrupt and major Driven by Champions for Improvement Unshakeable individualism, passion for new Kaizen, a process of on-going improvement through small incremental steps 15TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 15 6. Approach 7. Method 8. Implementation 9. Practical demands 10. Orientation 11. Success criteria 12. Avantages 6. Approach 7. Method 8. Implementation 9. Practical demands 10. Orientation 11. Success criteria 12. Avantages Team oriented systematic approach Maintain and improve performance Common sense changes quickly implemented People commitment but little or no investment People Results are measured in terms of efficiency Functions well in a slowly growing economy Unshakeable individualism, passion for new ideas, and persistence Tear down and rebuild Technology breakthroughs, new inventions, and new theories Large infrastructure investment Technology Results are measured in terms of profit Better adapted in a rapidly growing economy Source: KAIZEN by Masaaki Imai, [refs]
  16. 16. Factories, People & Results The Toyota “Model” or “Way” has many different facets including a philosophy 16TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 16 Source: The Toyota Way by Jeffrey Liker – McGraw-Hill - 2004
  17. 17. Factories, People & Results The history of Lean Lean manufacturing is attributed to the Toyota Motor Company. In the 1950’s Toyota developed the Toyota Production System or TPS which is generally acknowledged to be the basis of Lean. The most well know founders of Lean are: Sakichi Toyoda, Kiichiro Toyoda, Eiji Toyoda, Taiichi Ohno and Shigeo Shingo. Lean had the support of W. Edwards Deming in the domain of quality. The name “Lean” first appeared in an MIT book The Machine that Changed the World 17TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 17 The name “Lean” first appeared in an MIT book The Machine that Changed the World Today Lean is used in industries throughout the world. Taiichi OhnoTaiichi Ohno
  18. 18. Factories, People & Results Table of contents Theory of Constraints / TOC Lean Manufacturing Six Sigma TLS: the combination of the 3 approaches Appendices 18TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 18 Appendices – The main books to understand TLS – Useful internet links
  19. 19. Factories, People & Results Six Sigma is comprised of 3 elements A goal to reduce process variability to less than 3.4 defects per million occurrences* (Six Sigma references six standard deviations form the mean. The mathematical symbol for a standard deviation is sigma (σ)) A system of certification of experts: Green Belt, … Master Black Belt.** A process improvement cycle: DMAIC: Define, Measure, Analyze, Improve and Control 6σ 19TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 19 6σ
  20. 20. Factories, People & Results Objective: 6σ LSI LSS LSI LSS Small σLarge σ The objective of Six Sigma is to reduce the width of the standard deviation 20TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 20 As the standard deviation decreases the number of defects decreases The quality of delivered products is improved 67 000 defects per million (dpm or ppm) 3,4 defects per million (dpm or ppm)
  21. 21. Factories, People & Results DMAIC: Process of on-going improvement Define, Measure, Analyze, Innovate/Improve, Control Define: All stakeholders, including the customer, agree on the problem and the objective of a solution. Measure: Measure and record key elements of the process to establish a baseline and gain an understanding of the process. Analyze: Analyze the data and verify that the cause and effect relationship has been established. Find the root cause of the problem. (causes, not symptoms) 21TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 21 Improve* (or resolve) develop and present logical, documented plans for resolving the problem based on the data. Some standard solutions exit: (Taguchi) for complex problems, or (Poka Yoke, MSP, standards, …) for less complex problems. Control: Monitor the new process to be sure the problem does not reoccur.
  22. 22. Factories, People & Results Six Sigma Belts (Levels of expertise) Champion or sponsor Master Black Belt • Act as in-house coaches and mentors for Six Sigma activities • 100% of their time is committed to Six Sigma • Act as in-house coaches and mentors for Six Sigma activities • 100% of their time is committed to Six Sigma • Takes responsibility for Six Sigma implementation across the organization • Is a member of the senior management team • Takes responsibility for Six Sigma implementation across the organization • Is a member of the senior management team 22TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 22 Green Belt Black Belt • Requires 2 months training on Six Sigma methods • Works under the supervision of a Black Belt on large projects • Conducts smaller projects independently • Requires 2 months training on Six Sigma methods • Works under the supervision of a Black Belt on large projects • Conducts smaller projects independently • Requires 4 weeks of training spread out over 4 months time • Is an expert on Six Sigma tools and is an expert on statistics • Manages significant process improvement projects • 100% of their time is committed to Six Sigma • Requires 4 weeks of training spread out over 4 months time • Is an expert on Six Sigma tools and is an expert on statistics • Manages significant process improvement projects • 100% of their time is committed to Six Sigma
  23. 23. Factories, People & Results The history of Six Sigma Motorola developed Six Sigma en 1986. The method became well known in the 90’s when, under the leadership of Jack Welsh, General Electric successfully applied. Many large American companies soon followed suit. As with Lean, Six Sigma inspired W. Edwards Deming notably in his “wheel of quality” cycle but more significantly in his development of Total Quality Management / TQM (Shewhart, Juran, Crosby, Ishikawa, Taguchi, etc.). Today, Six Sigma and Lean are used in combination and referred to as Lean Six Sigma or 23TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 23 Today, Six Sigma and Lean are used in combination and referred to as Lean Six Sigma or LSS.
  24. 24. Factories, People & Results Table of contents Theory of Constraints / TOC Lean Manufacturing Six Sigma TLS: the combination of the 3 approaches Appendices 24TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 24 Appendices – The main books to understand TLS – Useful internet links
  25. 25. Factories, People & Results Focus and Leverage: Concentrate on the 1% of the system that determines 99% of its performance By focusing Lean and Six Sigma activities on the constraints that directly impact global performance, the return on investment for these efforts is necessarily higher. This method avoids the discouragement that arises when non-constraints are improved without significant impact on global performance. TLS provides results that are not only significant, visible in bottom line results, but also very rapidly attained. See for example the scenario in Epiphanized (see Appendices) 25TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 25
  26. 26. Factories, People & Results “Thinking Processes” in TLS The “Thinking Processes” of TOC help to: – Make the logic of the solution clear and to get buy in for the solution. For example see the “ Intermediate Objectives Map ” opposite. – Clarify situations in which the constraint is not a physical bottleneck but rather a policy constraint that can be eliminated by changing the rules or behaviors. 26TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 26 behaviors. See Appendices 3 & 4 in Epiphanized. (Sproull et Nelson) Source: Epiphanized de Bob Sproull & Bruce Nelson p.268
  27. 27. Factories, People & Results Injecting TOC into a Lean process: An enterprise, already very Lean achieved a 15% improvement in just one hour Case: A worldwide supplier of automotive components already very Lean TOC was injected into their Lean system: – “One piece flow” was challenged and a buffer of a dozen pieces was implemented in front of the bottleneck in order to protect this resource from minor disruptions (3 minutes or less) in the upstream processes, – Management attention was focused on the bottleneck resource (no stoppages for lunch breaks, rapid 5 whys on reoccurring production problems, priority for maintenance, …). Results: >15% improvement in total output of the line in less than one hour. 27TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 27 STxx Oven Bottleneck Machine STxx Shaft Insert. STxx Assembly STxx Shaft Insertion STxx Welding STxx Terminal Welding STxx Testing STxx Resin STxx Machining STxx Pack STxx Micro. Inser
  28. 28. Factories, People & Results Metallurgical Enterprise: >20% improvement in sales in 3 months Case: a metallurgical factory with more than 1,500 workers. TOC identified the bottleneck process as heat treatment (and not the other expensive processes such as the rolling mill) Improvement efforts were focused on the bottleneck: – SMED (or rather “Process SMED”) was used to significantly reduce the (temperature) change-over times, – Six Sigma was used to greatly reduce the variability and reduce the scrap and re-work. 28TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 28 and re-work. The Drum-Buffer-Rope method greatly reduced the amount of WIP (>50%). Flow of materials Bottleneck The combination of TOC, Lean and Six Sigma led to a rapid increase of the Throughput (and sales) of >20%
  29. 29. Factories, People & Results An excellent case study of TLS in France: les Verreries Brosse This case study was written up in the April 12, 2012 issue of l’Usine Nouvelle, an influential French business magazine. The enterprise fabricates glass containers for cosmetics and perfumes. This is probably the best example of TLS in action in the world today. All three components are fully exploited in the solution: – TOC to focus on the bottleneck, 29TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 29 – TOC to focus on the bottleneck, – Lean in all areas of management and methodology, – Six Sigma (Taguchi, Design of Experiment (DOE), etc.) was deployed on the bottleneck.
  30. 30. Factories, People & Results The history of TLS The origin of TLS could be attributed to a seminal article published in the March 2006 issue of APICS* magazine: – Continuous Improvement Trio: The top elements of TOC, lean and six sigma make beautiful music together by Russ Pirasteh & Kimberly Farah Since then several books on TLS have been published. (see the bibliography in the Appendices) 30TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 30 Today, the principle supporters and developers of TLS around the world are: Robert E. Fox, Bruce Nelson, Russ Pirasteh & Bob Sproull.
  31. 31. Factories, People & Results Table of contents Theory of Constraints / TOC Lean Manufacturing Six Sigma TLS: the combination of the 3 approaches Appendices 31TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 31 Appendices – The main books to understand TLS – Useful internet links
  32. 32. Factories, People & Results TLS books: 2 business novels Epiphanized by Bob Sproull & Bruce Nelson (2012) – While taking the form of a novel to get the ideas across there are also 1100 pages of technical material which explain in detail the principles of TLS, Throughput Accounting, the Thinking Processes, the Replenishment Model, DBR (Drum – Buffer – Rope), & Critical Chain Project Management, etc. 32TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 32 Velocity by D. Jacob, S. Bergland & J. Cox (2010) – A business novel which describes how to combine the three approaches. This novel lays out an interesting case of a double bottleneck. During the course of the novel the actors solve both a managerial constraint as well as a production constraint.
  33. 33. Factories, People & Results TLS reference books: Profitability with no boundaries by Reza Pirasteh &Robert E. Fox (2010) – Written by two well respected authors this book is principally a reference book for exploring the details of integrating TLS into an enterprise. It introduces iTLS® a systematic method for integrating the three components. 33TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 33 The Ultimate Improvement Cycle by Bob Sproull (2009) – Written by one of the co-authors of Epiphanized . Recent (2009). The author is probably the most experienced implementer of TLS in the world.
  34. 34. Factories, People & Results Theory of Constraints books: The Goal by Eliyahu Goldratt – The first use of the business novel as a format for explaining a management process. It has sold more than 3.5 million copies in 29 languages and is required reading in most MBA programs. Eli Goldratt is the founder of the Theory of Constraints (TOC) approach . His book The Goal was selected by Times Magazine in 2011 as one of the 25 most influential business books ever written. – Required reading 34TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 34 Viable Vision by Gerald Kendall – An excellent executive summary that presents many aspects of TOC that are important in understanding TLS including: Critique Chain Project Management, the Thinking Processes, Mafia offers, Replenishment, etc.
  35. 35. Factories, People & Results Lean Manufacturing books: The Toyota Way by Jeffrey Liker – The reference book on the Toyota way, recent and well written. It describes the complete approach as used by Toyota. Liker has written several other books for those who wish to go even deeper in the Toyota method Toyota Culture , Toyota Talent, Toyota, Toyota Continuous Improvement , … The machine that changed the world by J. P. Womack, D. T. Jones &D. Roos – In spite of its age (1990) it is still pertinent and is worth rereading for 35TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 35 – In spite of its age (1990) it is still pertinent and is worth rereading for the wealth of comparative information it contains on Lean development in Europe, the United States, and Japan. The first known reference to the term “Lean” for this method of production is found in this book Toyota Kata by Mike Rother – A recent (2009) book, well appreciated by practitioners of Lean, it goes well beyond the fundamentals. The Toyota Spirit by Taiichi Ohno – Written by Taiichi Ohno and originally published in 1990, this book is no longer in print. It marked the debut of Toyota’s Lean philosophy in France. Taiichi Ohno is one of the founders of Lean.
  36. 36. Factories, People & Results Six Sigma books The Six Sigma Way de Pande, Neuman & Cavanaugh – One of the best reference books on Six Sigma. Six Sigma de Maurice Pillet – Actually, the French reference that present exhaustively the approach 36TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 36
  37. 37. Factories, People & Results On www.linkedin.com: Group: TLS – TOC Lean Six Sigma The oldest and most established LinkedIn group Useful web link: A discussion group on LinkedIn 37TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 37 The oldest and most established LinkedIn group on the topic of TLS. Almost all of the world’s experts on TLS are members of this group.
  38. 38. Factories, People & Results Useful web link: a information website dedicated to TLS To get the latest news and use the best web sources when surfing Sur www.scoop.it/t/tls-toc-lean-six-sigma : Topic « TLS – TOC, Lean Six Sigma » The combination of Lean, Six Sigma and Theory Of Constraints. How to build your own system by choosing what works for you. 38TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 38
  39. 39. Factories, People & Results Useful Web Links: Sites and blogs Blog « Focus and Leverage » de Bob Sproull – www.focusandleverage.blogspot.fr Site iTLS de Russ Pirasteh – www.itls-iso.com Article « Increase Lean Six Sigma’s Power with TOC and Systems Thinking » de Michael Higgins – www.isixsigma.com/methodology/lean-methodology/lean-six-sigma-toc-systems-thinkin 39TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 39 – www.isixsigma.com/methodology/lean-methodology/lean-six-sigma-toc-systems-thinkin Article « The Theory Of Constraints: To accelerate your Lean program and generate growth » by Philip Marris – http://www.marris-consulting.com/en/Using-Theory-Of-Constraints-to-boost-Lean-programs-158.html
  40. 40. Factories, People & Results Marris Consulting Paris, France Philip Marris, the author of this document, is the founder and Managing Director of Marris Consulting. Marris Consulting conducts regular training courses in TOC, TLS, Critical Chain project Management, and other related areas of practice. The courses are delivered in Paris but can be arranged to be conducted at other sites. Marris Consulting has conducted over 100 engagement in transforming industrial enterprises in France and around the world. The firm is recognized as an expert in Theory of Constraints. Philip Marris is the author of the TOC reference book in French: Le Management Par les Contraintes. A new edition of this book is in the works. Philip is English and worked extensively with Eli Goldratt in the formative years of TOC. 40TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting TLS: Theory Of Constraints + Lean + Six Sigma Point Of View – Marris Consulting © 2012 - Marris Consulting. POV TLS UK v1.2 UK 20130903 40 works. Philip is English and worked extensively with Eli Goldratt in the formative years of TOC. Company websites (English versions of these sites will be available soon) – www.management-par-les-contraintes.com – www.chaine-critique.com Founded in 2005 Marris Consulting augments its in house staff with a large network of TOC practitioners around the world. Marris Consulting Tour Maine Montparnasse 27th floor 33, avenue du Maine Paris 75015 France Tel. +33 (0) 1 71 19 90 40 www.marris-consulting.com

×