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18 Feb 2011

Reaching the plateau of the U-curve, or:
When the 4 colors are not enough (part 2)

(RRR)

First, let’s remind ourselves the reason for the fact that in so many environments that claim to have no excess capacity, once DBR (and more so when BM) is implemented a considerable amount of capacity is revealed. The answer is that in the conventional mode of operation, which is dominated by the desire of people to look busy (and the need for high level of management interventions), the free capacity cannot be estimated by observing – or even measuring – the time that the relevant resources are standing idle. The only effective way to reveal the capacity is to change the mode of operation from pushing to be on the right hand side of the “U curve”, to operating within the plateau.

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TOC Insights into Operations
Dr. Eliyahu M. Goldratt and Rami Goldratt

The TOC Insights into Operations will deepen the understanding of TOC beyond the knowledge available in any other material for Production. They were carefully produced to ease its usage and maximize the learning experience. The users can learn at their own speed and easily review any of the material, as they need.

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Tags: competitive edge, RRR, theory of constraints, U curve

This entry was posted on Friday, February 18th, 2011 at 10:59 AM and is filed under Nuggets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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When the 4 colors are not enough
Goldratt’s Golden Nugget #14
Sustaining Continuous Growth
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