220 likes | 320 Views
The High Cost of Doing Nothing. Speed to Market as a Competitive Advantage. Skip Reedy. CRITICAL CHAIN PROJECT MANAGEMEMT CRITICAL CHAIN PRODUCTION MANAGEMEMT. The harder I work, the behinder I get. Behaviors. ASAP. Student Syndrome. Parkinson’s Law. Multitasking. Multitasking.
E N D
The High Cost of Doing Nothing Speed to Market as a Competitive Advantage Skip Reedy CRITICAL CHAIN PROJECT MANAGEMEMT CRITICAL CHAIN PRODUCTION MANAGEMEMT
The harder I work, the behinder I get. Behaviors ASAP Student Syndrome Parkinson’s Law Multitasking
Multitasking The High Cost of Multitasking
Multitasking The High Cost of Multitasking Delays caused by interruptions and by changing horses
Multitasking at its best The harder I work, the behinder I get.
The High Cost of Multitasking Covey’s Four Quadrants Urgent Not Urgent I II Important III IV Not Important
Theory of Constraints Focus on what is important
The Kink
The Constraint Limits total output Sets the Pace The focal point Indicates system health If it stops, your business stops A constraint can be a machine, person, kink, department, leadership, behavior, policy or the market.
The Constraint System / Production Line / Office Process / Project Constraint Raw Materials Finished Goods Process A Process B Process C Process D Process E 20 15 10 19 17 X 12
TOC Five Focusing Steps Find your constraint Help it to do more Protect it Buy more of it Did it move?
Effects of TOC The Constraint is faster & rarely stops Inventory is cut by 1/3 Overtime is reduced Lead Time is cut in half Due Date Performance is exceptional
Bottom Line Impact 20% increase in Throughput with Little or no increase in Operating Expenses 40% Increase in Net Profits?
A Guarantee!!! Challenges of Supply & Demand Criteria for a Supply Chain Solution Hydraulic cylinders: Long Lead Times Unreliable Delivery Increase Availability Reduce Inventory Reduce cost Guaranteed fast deliveries High quality products Positive impact on the bottom line Reliable Availability Program Lead times shorter than industry We pay if we are late 50% shorter lead times are guaranteed at premium pricing Penalty if Late Stock orders 20% penalty Custom orders 10% penalty per day Custom Express 50% 1st day & 10% each day additional day late
Speed to Market as a Competitive Advantage Kitchen Cabinet manufacturer
Speed to Market IS a Competitive Advantage Companies using TOC Industries using TOC Boeing Commercial Airplanes Boeing Satellite Raytheon Global Solar Energy First Solar Infinia solar Borg Warner Detroit Diesel Fleetguard Filters Ford Motor General Motors Oxford Hospitals Hitachi Japanese Ministry of Public Works Retail Education Banks Prisons Airlines Submarines Software Public Works Job Shops Healthcare Automotive Collision Repair Shops Logistics Maintenance & Repair Manufacturing Marketing & Sales Projects Construction Services Clothing distribution Construction Doctors offices City Permitting Water Treatment Oil Field Equipment Eli Lilly Shea Homes Coca Cola ABB Dixie Iron Works LeTourneau US Air Force Marine Corps US Navy
Marine Corps Logistis Base Overhaul of trucks, Humvees, & Amphibious Assault Vehicles after they have been dragged back from a war
Marine Corps Logistics Base MK48 truck cab heavy hauler
Speed to Implement the Theory of Constraints is a Competitive Advantage
The High Cost of Doing Nothing Speed to Market as a Competitive Advantage Skip Reedy CRITICAL CHAIN PROJECT MANAGEMEMT CRITICAL CHAIN PRODUCTION MANAGEMEMT http://CCPMconsulting.com