Resolving Measurement/Performance Dilemmas (Chapter 14 of Theory of Constraints Handbook)

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Publisher Description

This is an individual chapter of Theory of Constraints Handbook. Chapter Purpose: To supply a structure to pull information from a TOC logistical system and utilize the TOC Thinking Process Tools to produce a significant measurement and feedback procedure to help with ongoing improvement. Though an efficient logistical system is a prerequisite to a proper measurement system, the logistical system will never ever be appropriately executed without measurements that supply feedback on the present status, restorative action and motivation for all essential players to integrate efforts. A measurement is simply a reading at any point in time of the state of the system to the plan the system was directed to carry out (i.e. Rope release, Buffer status, Drum schedule execution, and Drum usage and effectiveness). They are not used to reward or punish people. Cross practical and synergistic parts of a supply chain can influence the exact same information but for extremely various factors. A âEURœfairâEUR and productive metric will direct and coordinate the efforts to the source of the problem. Metrics are used to produce an early caution system and a feedback loop to alert people when and ways to act together to obtain the system back on plan (to meet market demand). They are used to produce a standard for determining improvement and to recognize and focus on enhancements most needed and that have the greatest ROI/RACE. The TOC tools needed to develop and carry out the measurement system will be gone over. The chapter checks out the relationship in between the logistical system and its measurements in addition to the 5 questions needed to evaluate the system status and guided instructions at any given minute in time. A detailed study is supplied.

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