Building Lean Supply Chains with the Theory of Constraints 1st edition by Srinivasan,Mandyam ‎0071771212 9780071771214

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ISBN 10: ‎ 0071771212
ISBN 13:978-0071771214
Author:Srinivasan,Mandyam

Innovative strategies for building and managing the supply chain using Lean and the Theory of Constraints (TOC) With an emphasis on systems thinking, Building Lean Supply Chains with the Theory of Constraints uniquely integrates TOC with Lean, illustrating how these two philosophies complement and reinforce each other to create the smooth flow of goods and services through the supply chain. The majority of the chapters draw on the tools and techniques of TOC, including throughput accounting, drum-buffer-rope, TOC in distribution and replenishment, the thinking process, and critical chain project management. All of these topics are presented in the context of building and managing a lean supply chain to achieve true bottom line results. Coverage includes: The lean supply chain roadmap Envisioning the lean supply chain: systems thinking Adopting a throughput world perspective Designing products and processes to fulfill customer needs Building a competitive operations strategy Partnering in the lean supply chain Streamlining the value stream Creating flow through the supply chain Managing projects the TOC way: critical chain project management

Building Lean Supply Chains with the Theory of Constraints 1st Table of contents:

Chapter 1 The Lean Supply Chain Roadmap

Challenges to the Lean Supply Chain

The Internet and Commoditization

Manufacturing Practices

The Bullwhip Effect

The Beer Game

The Impact of Forecasting and POS Data

The Impact of Lead Times

Lessons from the Beer Game

Structuring the Lean Supply Chain

The Lean Supply Chain Roadmap

Step 1: Develop Systems Thinking Skills

Step 2: Focus on Throughput

Step 3: Design Products and Services that Deliver Customer Needs

Step 4: Develop a Competitive Operations Strategy

Step 5: Form Strategic Alliances with Supply Chain Partners

Step 6: Streamline the Value Stream

Step 7: Create Flow Along the Supply Chain

Implementing the Lean Supply Chain Roadmap

Conclusions

References

 

Chapter 2 Envisioning the Lean Supply Chain: Systems Thinking

The Traditional Approach to Managing Systems

Local Optimization

Using Systems Thinking to Meet the Challenge

Applying Lean Supply Chain Principle 1

Management Philosophies to Enhance Lean Supply Chain Performance

The Theory of Constraints

Theory of Constraints and Un-common Sense

Lean

Synergies Between TOC and Lean

The Business Ecosystem

Personal Computer Ecosystems

Conclusions

References

 

Chapter 3 Adopting a Throughput World Perspective

TOC and the Thinking Process

An Un-common Sense Minute

Focusing on the Constraint

Physical Constraints

Market Constraints

Policy Constraints

Estimating Product Costs with Cost Accounting Systems

The Standard Cost Accounting System

CSN, Inc.

Activity-Based Costing (ABC)

Applying ABC to CSN, Inc.

Throughput Accounting

Throughput Accounting Measures

Relating Throughput Accounting to Traditional Accounting

Kings of Neon

Relating Throughput Accounting Measures to Financial Measures

Cost World Versus Throughput World: Everclear, Inc.

The Five-Step Focusing Process of TOC

Step 1: Identify the System’s Constraint(s)

Step 2: Decide How to Exploit the System’s Constraint(s)

Step 3: Subordinate Everything Else to that Decision

Step 4: Elevate the System’s Constraints

Step 5: If a Constraint Was Broken in a Previous Step, Go Back to Step 1

An Example of the Five-Step Focusing Process

Interpreting T

An Un-common Sense Minute

Applying Throughput Accounting to CSN, Inc.

Conclusions

References

 

Chapter 4 Designing Products and Processes to Fulfill Customer Needs

The Viable Vision

Defining the Market Segments

Market Segmentation at Hindustan Unilever Limited

Order Qualifiers and Order Winners

Benchmarking Best Practices

Managing Customer Demand Volatility

Quick and Reliable Response

An Un-common Sense Minute

Risk Pooling

The RAP Principle

Customer-Time-Based Demand Profile

The TOC Distribution and Replenishment Solution

The Plant Warehouse

Setting Target Inventory Levels at the Points of Consumption

Safety Buffers to Accommodate Variation

Looking for Opportunities to Reduce Safety Buffers

The Make-to-Availability Replenishment Mechanism

Monitoring Safety Buffers Based on Buffer Penetration

Applying the TOC Distribution Solution at the POC

Measures for Sustaining the Solution

Conclusions

References

 

Chapter 5 Building a Competitive Operations Strategy

Gaining a Competitive Advantage

Building a Structural Position

Competing Through Process Execution

Operational Effectiveness and the Productivity Frontier

Operational Effectiveness and Competitiveness

Operational Effectiveness: Necessary but Not Sufficient

Building Strategic Flexibility

A Model for Enterprise Growth

Maintaining a Process Orientation

Bringing New Products to Market Faster

Coevolving Marketing and Operations Strategies

Communicating Financial Benefits to Management

Enabling the Operations Strategy

Conclusions

References

 

Chapter 6 Partnering in the Lean Supply Chain

Partnering with Suppliers

Arm’s-Length Relationships

Strategic Partnerships

Vendor-Managed Inventory

Partnering with Logistics Providers

3PLs and 4PLs

Postponement in Logistics

Cross-Docking

Supply Chain Metrics

Creating Win-Win Partnerships: The Evaporating Cloud

The Office Worker’s Dilemma

The Injection for the Office Worker’s Dilemma: The Dabbawalas

Takeaways from the Reo Motors Case

Conclusions

References

 

Chapter 7 Streamlining the Value Stream

From Craft Production to Mass Production to Lean Production

Henry Ford and the Origin of Mass Production

The Toyota Production System

The U.S. Response

Lessons Learned

Lean: A Growth Strategy

Value-Stream Mapping

The Tools and Techniques of Lean

5-S

Flowcharts

Takt Time

Average Labor Content and Minimum Operator Requirement

Mixed-Model Scheduling and Small-Batch Production

One-Piece Flow

Cellular Layout

Standard Work

Pull Replenishment and Kanbans

Point-of-Use Materials Storage

Total Productive Maintenance

Mistake-Proofing and Method Sheets

Continuous Improvement and the Pursuit of Perfection

Conclusions

References

 

Chapter 8 Creating Flow Through the Supply Chain

Creating Flow: Synergies Between TOC and Lean

Comparing TOC and Lean Philosophies

Exploiting the Synergy Between TOC and Lean to Create Flow

Creating Flow: The Impact of Variability and Dependency

The Frontier City Clinic

The Impact of Variation on Dependent Events

Creating Flow: The Impact of Batch Size

Process Batch Versus Transfer Batch

Controlling Flow Using Pull

A Serial Production System

Using a Push System to Address Flow

Controlling Flow Using Kanbans

Controlling Flow Using ConWIP

Controlling Flow by Pulling from the Bottleneck

The Drum-Buffer-Rope Model

Time Buffers Versus Inventory Buffers

Determining Buffer Size

The Simplified Drum-Buffer-Rope Model

Buffer Management

The Dice Game

Variations on the Dice Game

Simulating the ConWIP System

Pull Systems Are More Stable and Predictable Than Push Systems

Comparing Pull and Push Systems for Efficiency

Conclusions

ConWIP Efficiency Law

Corollary to the ConWIP Efficiency Law

References

 

Chapter 9 Managing Projects the Theory of Constraints Way

Characteristics of Projects

The Impact of Variation on Project Completion Times

Project Management with PERT/CPM

Determining the Critical Path

Causes of Avoidable Project Delays

Multitasking

Parkinson’s Law

The Student Syndrome

Sandbagging

Critical Chain Project Management

Planning the CCPM Schedule in a Single-Project Environment

Planning the CCPM Schedule in a Multiproject Environment

Executing the CCPM Schedule Using Buffer Management

An Un-common Sense Minute

Sustaining the Change

Visual Project Management

A Firm, Aggressive Plan

Frequent Reporting of Completed Tasks

The Expert Resource Bench

Implementing VPM

Special Cases in VPM

Conclusions

References

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