Manufacturer's Guide to Implementing the Theory of Constraints (The CRC Press Series on Constraints Management)

189 Pages·2000·4.09 MB·English

by  Mark Woeppel

Manufacturer’s Guide to
Implementing
the Theory
of Constraints
The St. Lucie Press/APICS Series on Constraints Management
Series Advisors
Dr. James F. Cox, III Thomas B. McMullen, Jr.
University of Georgia McMullen Associates
Athens, Georgia Weston, Massachusetts
Titles in the Series
Introduction to the Theory of Constraints (TOC) Management System
by Thomas B. McMullen, Jr.
Securing the Future:
Strategies for Exponential Growth Using the Theory of Constraints
by Gerald I. Kendall
Project Management in the Fast Lane:
Applying the Theory of Constraints
by Robert C. Newbold
The Constraints Management Handbook
by James F. Cox, III and Michael S. Spencer
Thinking for a Change:
Putting the TOC Thinking Processes to Work
by Lisa J. Scheinkopf
Management Dilemmas:
The Theory of Constraints Approach to
Problem Identification and Solutions
by Eli Schragenheim
Manufacturing at Warp Speed:
Optimizing Supply Chain Financial Performance
by Eli Schragenheim and H. William Dettmer
The Measurement Nightmare:
How the Theory of Constraints Can Resolve
Conflicting Strategies, Policies, and Measures
by Debra Smith
Manufacturer’s Guide to
Implementing the Theory of Constraints
by Mark J. Woeppel
Manufacturer’s Guide to
Implementing
the Theory
of Constraints
Mark J. Woeppel
The St. Lucie Press/APICS Series on Constraints Management
St. Lucie Press
Boca Raton London New York Washington, D.C.
SL2686_frame_FM Page iv Thursday, November 9, 2000 11:00 AM
Library of Congress Cataloging-in-Publication Data
Woeppel, Mark.
The manufacturer’s guide to implementing the theory of constraints /
Mark Woeppel.
p. cm.
Includes bibliographical references and index.
ISBN 1-57444-268-6
1. Production management. 2. Theory of constraints (Management) 3.
Reengineering (Management) 4. Quality control. I. Title.
TS155 .W58 2000
658.5—dc21 00-011198
CIP
This book contains information obtained from authentic and highly regarded sources. Reprinted material
is quoted with permission, and sources are indicated. A wide variety of references are listed. Reasonable
efforts have been made to publish reliable data and information, but the author and the publisher cannot
assume responsibility for the validity of all materials or for the consequences of their use.
Neither this book nor any part may be reproduced or transmitted in any form or by any means, electronic
or mechanical, including photocopying, microfilming, and recording, or by any information storage or
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The consent of CRC Press LLC does not extend to copying for general distribution, for promotion, for
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for such copying.
Direct all inquiries to CRC Press LLC, 2000 N.W. Corporate Blvd., Boca Raton, Florida 33431.
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are
used only for identification and explanation, without intent to infringe.
© 2001 by CRC Press LLC
St. Lucie Press is an imprint of CRC Press LLC
No claim to original U.S. Government works
International Standard Book Number 1-57444-268-6
Library of Congress Card Number 00-011198
Printed in the United States of America 1 2 3 4 5 6 7 8 9 0
Printed on acid-free paper
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Table of Contents
1 What is Constraint Management? ........................................................1
2 Implementation Overview ..................................................................21
3 The Implementation Plan ...................................................................43
4 Project Launch .....................................................................................63
5 Assessment............................................................................................69
6 Designing the New Process .................................................................85
7 Achieving Control..............................................................................105
8 Organizational Alignment ................................................................148
9 Last Thoughts and Ruminations ......................................................161
References ....................................................................................................165
Index ............................................................................................................167
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Introduction
his book is a guide and workbook for anyone wanting to implement
Constraint Management in a manufacturing organization.
TI will show you a process to implement that has been proven in multiple
organizations and will provide you with short cuts to a successful implemen-
tation. You’ll find a wealth of resource material in the boilerplate procedures
and policies. I have deliberately emphasized the tactical processes and left
the strategic area to future writing. Most implementations are less than 5
years old, so little has been done in this arena. There are implementation
checklists with sample policies and procedures. You’ll get an understanding
of why these policies are there — and their importance to the success of your
implementation. My intention is to focus on the practical aspects of the
implementation, rather than the theoretical.
How Do You Do This Stuff?
Quite a bit has been written about constraint management and the theory
of constraints. Many people have written their success stories. There is a lot
about how it works, but not how to do it, how to answer the question, “What
in my business has to change in order to be successful?”
The content is based on my implementing experiences and describes how
to make the theory practical. I hope, that by sharing my experiences, you
will avoid some of the mistakes my clients (and I) made. I’ll take you from
the first day you decide you want to change your organization, through the
writing of procedures, to the “anchoring” of the implementation, into the
cultural practices of the organization.
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What Is a “Successful” CM Implementation?
I don’t judge success against an indicator of x percent improvement of profit
or return on investment. If you use the concepts, you will improve perfor-
mance. No doubt about it. I have NEVER seen an implementation where the
concepts were applied correctly and the organization didn’t see significant
bottom line results.
A successful implementation is one where the management team is, on a
regular basis, considering constraint implications in the daily decisions of
allocating resources and making customer commitments. The management
team is making the long-term operations decisions (outsourcing and resource
acquisition) using similar criteria. So, focus on the cause of the success, not
the effect.
How This Book Is Organized
I’ve organized the book from basic concepts to more complex concepts. If
you look at the table of contents you’ll notice that the first thing that I do is
explain what constraint management is. My intention is not to give a detailed
explanation, but an overview. I assume you know something about constraint
management and you are interested in the topic. In the event that you do
not, I hope to give you enough detail that you will be able to make some
sense of the system that is going to be implemented and you’ll understand
what I’m talking about.
The first part of the book gives an overview of constraint management
and an overview of the implementation process. This is followed by a descrip-
tion of the system being implemented. My thinking is that by my giving a
bigger picture first and then later going into more detail, you will be able to
more readily digest the material. You can be confident that if I’m mentioning
something, it will be explained in more detail later.
Following this, you’ll see a discussion of the implementation process
where I give a summary of each step required to implement the constraint
management system. The subsequent chapters break the implementation
process down into sections. Within each section, you will see detail on what
the procedure is and the steps required to complete it.
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Acknowledgments
don’t think anyone writes a technical book that is truly original; all build
on prior knowledge. This book is no exception. Each of my employers and
Iclients had a hand in “inventing” the policies and processes I’ve described.
I am very grateful for the experience of working with them. Many customers
became my friends.
I want to thank Eli Goldratt, who has had the single largest influence on
how I think about business and who I have the privilege of calling my friend.
He has literally changed the course of my professional life. Robert Fox taught
me about being a consultant — I was very wet behind the ears and he took
a personal interest in my development as an associate of the Goldratt Insti-
tute. Thanks. Bob LaCourciere was my first client. He believed in me and
allowed me to experiment. We were a very good team. Bob Page was another
client who helped me a great deal. Much of the development of the policies
and procedures took place on his dime.
The book was a team effort. Although my name appears on the front,
Scott Monaco did a lot of the artwork (the good ones). Lisa Scheinkopf helped
me do a better job of explaining myself. It hurt, but I think the book is better
because she gave me some of her time. Linda Poling also helped with editing.
Will Baccich helped me see where additional emphasis was needed. I’m proud
to call you my friends. Thanks for your help.
Mark Woeppel
Carrollton, Texas
July 3, 2000
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