Constraint Management and Six Sigma - Revised

OUTLINE (Return to Main)

1. Agenda

   1. Introduction
   2. "Jumping Into Deep Water" Part I – Tour of a virtual manufacturing company
   3. "Jumping Into Deep Water" Part II
      1. Preliminary analysis
      2. Recommendations
   4. "Jumping Into Deep Water" Part III
      1. First run simulation – MICSS Corporation
      2. Q & A: Analysis of first run
   5. Theory of Constraints (TOC) Overview
      1. Three underlying assumptions
      2. Five focusing steps
      3. Throughput, inventory and operating expense
   6. Thinking process (TP) analysis of the MICSS Corporation
      1. How do TOC and TP relate to the MICSS Corporation?
      2. Current reality tree (CRT)
      3. Conflict resolution diagrams (CRD)
      4. Future reality tree (FRT)
   7. Second MICSS run simulation – with help from FRT
   8. Analyzing the second MICSS run
   9. Avoiding production overload – FRT "Red-Line Control"
   10. Using the constraint to do the right things –"Squeezing Blood from a Stone"
       1. How to raise throughput when production is fully utilized - how much demand?
       2. How to prioritize products – The fallacy of cost allocation
       3. What to do with prioritized products – Manipulating demand
   11. Third MICSS run simulation – With help from new FRT
   12. Long term contracts – How the situation changes (with T/CU table)
       1. Testing long term contracts – Short MICSS run
       2. New FRT option – "To Elevate or Not to Elevate?"
   13. Open discussion and summary
       1. Review
       2. Lessons learned
       3. Where do you go from here?

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