Showing posts with label Productivity. Show all posts
Showing posts with label Productivity. Show all posts

March 21, 2026

Throughput Increase Focused Productivity Improvement and Management

OBSERVE AND RECORD - ANALYSE - IDENTIFY OPPORTUNITY TO IMPROVE - REDESIGN - INSTALL - INDUSTRIAL ENGINEERING. PRODUCTS, FACILITIES AND PROCESSES.

#IndustrialEngineering   for   #SocietyProsperity  through #Productivity  #Improvement. 

INTRODUCTION TO MODERN INDUSTRIAL ENGINEERING. 

365+ Downloads in the new academic year. 12000 downloads 

Free Download from:

https://academia.edu/103626052/INTRODUCTION_TO_MODERN_INDUSTRIAL_ENGINEERING_Version_3_0




Theory of Constraints

Theory of Constraints - Principle, Theory and Bundle of Practices in Productivity Management

https://nraomtr.blogspot.com/2024/09/theory-of-constraints-principle-theory.html


Summary - Book - The Goal - A Process Ongoing Improvement - Eliyahu Goldratt

https://nraomtr.blogspot.com/2024/09/summary-book-goal-process-ongoing.html



Theory of Constraints, a systems framework to help determine:


What to change? What to change to? How to cause the change?


TOC asserts that the goal of a company is to make more (and more) money. 


It describes three methods to achieve this goal:


Increase Throughput (T = Sales Revenue - Totally Variable Costs)


Reduce Inventory (I = investment blocked in the system e.g. receivables, inventory, fixed assets, etc.)


Reduce Operating Expense (OE = fixed costs)


Increasing Throughput is generally far more powerful (and sustainable) to increase money made by a business. To help organizations increase Throughput, he created the Five Focusing Steps in the Process of Ongoing Improvement ( POOGI):


IDENTIFY the system's constraint


EXPLOIT the system's constraint


SUBORDINATE everything else to the above decision


ELEVATE the system’s constraint.


AVOID INERTIA if the constraint has been broken, go back to Step 1.



Ud. 21.3.2026

Pub. 6.9.2024





August 31, 2025

Theory of Constraints - Principle, Theory and Bundle of Practices in Productivity Management and Operations Management

The Purpose, Philosophy, Principles and Methods of Industrial Engineering.

#IndustrialEngineering   for   #SocietyProsperity  through #Productivity  #Improvement satisfying all constraints and limits. 

INTRODUCTION TO MODERN INDUSTRIAL ENGINEERING. 

460+ Downloads in the new academic year. 10000 downloads 2023-24 A.Y.

Free Download from:

https://academia.edu/103626052/INTRODUCTION_TO_MODERN_INDUSTRIAL_ENGINEERING_Version_3_0


Theory of Constraints is an important development in productivity management. It helps in planning productivity improvement projects on machines and operator on priority bases. It helps in budgeting of IE projects and studies. All productivity engineering outputs are to be used in TOC projects or improvements or injections.




My comments on a LinkedIn Post regarding TOC

Narayana Rao KVSS

Professor (Retired), NITIE - Now IIM Mumbai - Offering FREE IE ONLINE Course Notes


Productivity is the focus of TOC. If organizations are doing productivity management, TOC is an important principle and bundle of practices to be used. But it is dependent on all other productivity improvement methods like process chart analysis, operation analysis, productivity device design etc.

-----------

John Allan Loucks Thank you for the comment and question. The focus of the book "Goal" is on explaining what is productivity and how to increase it. I am developing an essay on TOC now and revising my earlier notes. May be I can present a better case of my statement after some time.


If productivity is to be improved, TOC provides a concrete focus. To improve a bottleneck facility or a process, you need to use all available productivity improvement methods. Goldratt did not argue against them. He highlighted that bottleneck facilities have to be improved first to derive the goal related benefit. If you improve other facilities or processes, no immediate benefit will accrue to the system.

 https://www.linkedin.com/posts/opexconsult_lean-activity-7236227018399346689-mRvZ

Has Industrial Engineering formally ignored Theory of Constraints Based Productivity Improvement?

https://www.linkedin.com/feed/update/urn:li:activity:7238549696183422976/

----------------


Theory of Constraints - Principle, Theory and Bundle of Practices in Productivity Management

Productivity Improvement and Productivity Management are not taking place effectively. So thought, Eliyahu Goldratt. He studied the issue and came out with a solution. The theory named, theory of constraints.

Goldratt actually helped a friend producing chicken coops to increase productivity.

He developed a computer package based on that solution name OPT. He explained the logic of OPT package through a novel - The Goal.


Important Points - Book - The Goal - A Process Ongoing Improvement - Eliyahu Goldratt. First Full Book on TOC.

https://nraomtr.blogspot.com/2024/09/summary-book-goal-process-ongoing.html


It's Not Luck - Goldratt - Summary - Lectures.

This is book is continuation of the book - Goal.

https://nraomtr.blogspot.com/2024/09/its-not-luck-goldratt-summary-lectures.html


Summary - Goldratt, E. M. - The Haystack Syndrome: Sifting Information Out of the Data Ocean.

How to find the constraint inside? How to find solution to the problem based on so much knowledge outside?

https://nraomtr.blogspot.com/2024/09/summary-goldratt-e-m-haystack-syndrome.html

Knowledge Management for Industrial Engineering.
Knowledge Management: A Basic Ingredient for #Productivity - Asian Productivity Organization.


Recent Case Study. Shared on LinkedIn on 13.9.2024

Alin Posteucฤƒ

Performance Improvement Consultant | Author of Strategic KAIZEN concept 

13.9.2024


๐Ÿš€ ๐”๐ง๐ฅ๐จ๐œ๐ค๐ข๐ง๐  ๐Ž๐ฉ๐ž๐ซ๐š๐ญ๐ข๐จ๐ง๐š๐ฅ ๐„๐ฑ๐œ๐ž๐ฅ๐ฅ๐ž๐ง๐œ๐ž: ๐๐ซ๐จ๐Ÿ๐ข๐ญ๐š๐›๐ฅ๐ž ๐’๐ฒ๐ง๐œ๐ก๐ซ๐จ๐ง๐ข๐ณ๐š๐ญ๐ข๐จ๐ง ๐จ๐Ÿ ๐„๐ช๐ฎ๐ข๐ฉ๐ฆ๐ž๐ง๐ญ ๐ฐ๐ข๐ญ๐ก ๐ญ๐ก๐ž ๐€๐ฌ๐ฌ๐ž๐ฆ๐›๐ฅ๐ฒ ๐‹๐ข๐ง๐ž ๐Ÿš€ 


Did you know that over ๐Ÿ“๐Ÿ“% of companies focusing on cost improvement fail to meet their goals?

 (๐‡๐š๐ซ๐ฏ๐š๐ซ๐ ๐๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ ๐‘๐ž๐ฏ๐ข๐ž๐ฐ, ๐Ÿ๐ŸŽ๐Ÿ๐Ÿ‘). 

It’s crucial to adopt strategies that truly deliver results. 

Strategic KAIZEN methodology does this to achieve Takt Profit targets.


One standout Strategic Kaizen project, ๐๐ซ๐จ๐Ÿ๐ข๐ญ๐š๐›๐ฅ๐ฒ ๐’๐ฒ๐ง๐œ๐ก๐ซ๐จ๐ง๐ข๐ณ๐ข๐ง๐  ๐„๐ช๐ฎ๐ข๐ฉ๐ฆ๐ž๐ง๐ญ ๐ฐ๐ข๐ญ๐ก ๐ญ๐ก๐ž ๐€๐ฌ๐ฌ๐ž๐ฆ๐›๐ฅ๐ฒ ๐‹๐ข๐ง๐ž, demonstrates how strategic productivity improvements can yield significant financial and operational gains.

https://www.linkedin.com/posts/alin-posteuca_strategic-kaizen-case-study-by-alin-posteuca-activity-7240410881363197953-YvHF



Summaries of Book Chapters on TOC


Constraint Management - Important Points - Summary - Krajewski - 12th Edition

https://nraomtr.blogspot.com/2019/09/constraint-management-important-points.html


Synchronous Manufacturing and Theory of Constraints - Review Notes - Chase Aquilano Jacobs Book Chapter

https://nraomtr.blogspot.com/2011/12/synchronous-manufacturing-and-theory-of.html




Books on Theory of Constraints


The World of the Theory of Constraints: A Review of the International Literature


Victoria J Mabin, Steven J Balderstone

CRC Press, 29 Nov 1999 - Technology & Engineering - 240 pages

The Theory of Constraints (TOC) - as developed by Dr. Eliyahu Goldratt - has seen a rapid expansion since the publication of his book, The Goal. As with most fast growing areas, you can quickly feel out of touch with new developments. The World of the Theory of Constraints provides a summary of recently published research on TOC.

The authors explored databases, and sought out papers and books drawing on as wide a range as possible. Aside from the works by Dr. Goldratt himself, the authors focus on items published since 1990, highlighting the most recent developments in TOC. The scope of the material covers works containing specific reference to TOC, including Synchronous Manufacturing and Constraint Management.

The book is organized into three sections. The first section contains an analysis and interpretation of the results of the search. The second provides abstracts on all the material. The third supplies author, keyword, and subject indexes along with a list of books, journals, websites, and publishers.

Extensively researched and referenced, The World of the Theory of Constraints furnishes comprehensive material on TOC. The multi-search approach has made this arguably the most exhaustive bibliography on this subject available. If you are researching TOC, this is the best place to start. If you use or teach TOC, you will want this resource.


Manufacturer's Guide to Implementing the Theory of Constraints


Mark Woeppel

Lulu.com, 3 Aug 2010 - Business & Economics - 174 pages

There are, today, many good books on the Theory of Constraints, or "TOC". These books, however, generally focus on explaining the details of TOC. But subject matter knowledge alone is not enough, if you want to actually use TOC in business. You must also have a valid roadmap for implementing it. This book provides it. Throughout the book, you have the concrete and actionable voice of a successful TOC consultant leading you to understand how to implement TOC in a manufacturing organization. The book also provides examples of various charts, forms and procedures that you can use as patterns for the materials you will need in your implementations.


Theory of Constraints: Creative Problem Solving

Umesh P. Nagarkatte, Nancy Oley

CRC Press, 27 Nov 2017 - Business & Economics - 314 pages


This book is on application of TOC in educational institutue. Especially in mathematics course - student retention.

This book was written to assist professionals and students to become proactive in their own education, improve thinking, resolve personal and interpersonal conflicts, improve pedagogy, manage departmental affairs and guide administrative decisions. The text captures the practical experience of the authors with and formal training in TOC to address many of the issues facing today’s education stakeholders.


The text is designed to teach methods for 1) "win-win" conflict resolution, 2) decision-making, 3) problem solving, and 4) analysis of systems using TOC’s powerful logic-based graphical Thinking Process tools. A creative thinker can identify, plan and achieve his or her goals just knowing the Thinking Process Tools.




Papers/Articles on Theory of Constraints






Lessons learnt from Eliyahu Goldratt the founder of the Theory Of Constraints and author of bestseller “The Goal”
Philip Marris

Theory Of Constraints and Lean expert. CEO of Marris Consulting based in Paris, France. Been “doing” TOC and Lean for +30 years in +350 organizations worldwide.


Sep 24, 2021


Baxendale, S. J. and P. S. Raju. 2004. Using ABC to enhance throughput accounting: A strategic perspective. Cost Management (January/February): 31-38.
Summary by Erin Lagor
Master of Accountancy Program
University of South Florida, Fall 2004








Interesting




Ud.  1.9.2025, 14.9.2024, 10.9.2024
Pub. 3.9.2024









September 20, 2024

Minimizing Machining Time and Cost of Machine Tools Operations - Carpenter - 1908

 Chapter VI. 


MINIMIZING THE TIME OF MACHINE-TOOL OPERATIONS. 


TWO fundamental principles of cheap production.

They are of the greatest importance, and yet nine times out of ten a searching investigation will prove that little consideration has been given them in ordinary shop practice in most of the companies at present. They are so closely related that their simultaneous discussion is advisable. They are both essentially "time savers." These two principles are: 


1. — The determination of "standard time" for each job and its tabulation, introduction, and enforcement. 

2. — The absolute elimination from the workman's routine of every duty but that of running his machine continuously and efficiently; the bringing to him of tools and stock for his next job before he is ready for it. 


The first and possibly the more vital of the two is the determination of standard time upon each job — that is, the shortest space of time in which each job should be completed (including setting up), under normal conditions and with due regard to the fullest possibilities and capacity of the machine tool, the cutting tool, and the stock. 

An appalling undertaking, this, in most shops, under existing conditions; appalling and seemingly impossible because of lack of knowledge of the best shapes for cutting tools, of the best methods of hardening and grinding, of the results to be secured from the use of high-speed steel cutting tools, of the best methods that can and should be adopted by a skilled workman, of the capacity of the machine tools in the shop, and, worst of all, because of the lack of men skilled in the best methods for handling these cutting tools — men capable of doing the work and of seeing that the workmen do it. 

It scarcely seems necessary to argue in favor of this determination of standard time. But in many manufacturing firms,  the question of the rapidity of production is determined by e foreman's judgment and skill alone. No man with real shop experience will assert that the average foreman does, or in fact can, know the best results that can be secured in machining today, unless he has been afforded and has accepted exceptional opportunities for making thorough tests of a really scientific character — something that rarely happens. Even should a foreman possess this desirable knowledge, it is beyond the power of any one man to supervise properly any group of men, even though small, so that the high point of efficiency may be assuredly reached, and at the same time do the other work that usually falls to the foreman's lot. 

Again, the use of high-speed steel for cutting tools is a development of recent years. Notwithstanding all that has been published on this subject, comparatively few shop foremen really know what the fullest possibilities of its use are, and fewer still ever force their departments to use it to its fullest efficiency even after its value has been recognized. In fact, there have been comparatively few tables ever published that show in a practical maimer just what can be done with it. The machine-tool builders themselves, singularly enough, seem to be unable to give any positive, accurate advice as to the actual conditions of cutting speeds, feeds, and depth of cut under which their own tools can best operate, and even the makers of the tool steels do not provide tables of much practical use. 

Nevertheless the work of such a man as F. W. Taylor, in his remarkably thorough and extremely valuable publication, " The Art of Cutting Metals," clearly shows the possibilities that lie in the use of these modem cutting tools — Messrs. Taylor and White being the discoverers of these possibilities and Mr. Taylor himself leading the van in the application to practical use of these principles. This one work makes clear not only the great possibilities but also the great difficulties that originally lay in the path of the investigator. With all of these points in mind, it is simply "rot" to give heed for a moment to any claim of any shop man that his knowledge of this subject is at all exhaustive. 

Standard times should be determined by some one, some how. Certainly no one can dispute the fact. Experiments and experience show that the present practices of foremen  gives results 40 to 60 per cent short of maximum efficiency. Inasmuch as your entire business is built upon and depends upon the cost of production — or, in its last analysis, simply "the time it takes each man to do his job of work," it is of fundamental importance that that standard time be first determined by methods that will ensure accuracy. 

The second cardinal principle of cheap production stated at the outset was " the absolute elimination from the workman's routine of every duty but that of running  his machine continuously and efficiently; the bringing to him of tools and stock for his next job before he is ready for it." 

The machine hand, assembler, or other worker must be forced to concentrate his skill and attention upon his own work and that work alone, making it impossible for him to waste his time (and thus the employer's money) upon work he should not do. Consider for a moment the many things that a machine hand, for example, will ordinarily do other than operate his particular tool, and then give a moment's thought to analyzing the result. The worst "time wasters" can be classified somewhat as follows: 


a. Rxmning to the supply room for stock for a new job. Result, the machine tool is shut down. 

b. Getting tools, clamps, etc., from the tool room for a new job. Result, the machine tool is shut down. 

c. Grinding his own tools (and very badly at that). Result, the machine is shut down. 

d. Excessive time in "setting up" a job, due to lack of proper instruction, or to a tendency to "soldier" because of lack of supervision. Result, the machine is shut down. 

e. To these add the fiurther tremendous loss of output because the workman fails to use the proper — the very best — cutting speeds, feeds, and depth of cuts, through either lack of knowl- edge or lack of supervision, and you have a combination that cuts the output of the ordinary shop far below what it should be. 


If your shop is running imder ordinary foremanship supervision, with no thorough method for bringing to the workman his stock; for providing him with tools for the next job before he is ready for it; with no method of instructing him what to do and how to do it, and no thorough way of comparing his output with what it should be according to the best standards of today, (mark me ! not your fore- man's standards) — then you can make up your mind that your output is far too low according to the best standards of production. 


You may imagine that "carefully calculated" piece-work rates will protect you; but if your piece-work rates have to allow for the conditions stated just above, you are deceiving yourself grossly as to the possibilities of your output. 

The important consideration is time! time! Time of the workman running his tool — that is the vital point. Every minute counts for profit if this tool is operating continuously and efficiently; for loss if it operates under the nullifying influences detailed above. 

Consider for a moment! Your entire factory investment — building, power plant, transmission plant, all probably built and selected with great care and expenditure of money — is simply to care for and operate the separate units of machine tools, or to house properly your assembling spaces. Your investment in machine tools repre- sents large sums. This vast expenditure is made with but one object  in view — that of producing work and producing it as cheaply as pos- sible. Calculate accurately your indirect charges of every character; proportion the total against each machine tool according to the "machine-rate" method of apportionment, and note carefully how large must be the rate per hour for each machine. This will be found to be an astonishingly large proportion of the labor rate per hour and will prove a good index of the great cost of lost time in the shop. 


Is it not clear, then, that each machine tool should be, nay must be, brought to as high a factor of operating efficiency as possible? Is not your entire investment made with that one end in view? Does it pay to have the efficiency of any collection of these units reduced 15 per cent to 25 per cent by the existence of such shop methods as those detailed, by which the men operating the machines are actually compelled to shut them down to hunt up their next job, to collect their tools, to grind their tools, and to do many things that should be done for them? Can you afford to suffer an even heavier reduction in effi- ciency due to lack of knowledge of the " best time for each job?" 


The importance of these points can be further emphasized by considering that all such delays, which in their total represent a large amount, directly affect cost and profits, output, indirect expense of every description, quick movement of stock, and hence ultimately the amount of working capital needed in the business, and the possibilities of quicker deliveries, with a resultant direct effect upon the sales department and customers. Indeed, aside from the question of costs and profits, nothing is more important to the separate mem- bers of a company— from the executives with their financial problems,through the sales departhient with their selling problems, to the harassed factory manager— than the quick movement of stock. 


The reason for the continual absorption of working capital into machinery or stock that worries many a financial officer, or for deliveries so delayed as to affect seriously the efficiency of the selling organization, or for excessive and unreasonable and possibly unex- pected costs that seem and, in fact, are out of reason — the reason for all lies hidden away back in the shop processes and methods. It crops out at the individual lathe, planer, shaper or assembling bench, and then only to the keen experienced eye. The workmen busy? Surely. Look at them hustling! But — see that group around the tool-supply window waiting for tools? How many are waiting at the tool grind- ers to grind their own tools each in his own "iadividual" manner? There is a mechanic who has taken twenty minutes to " set up" his job instead of ten. Then pause and wonder how in the world anyone or two or more foremen can be sure that the men now operating the machines are using proper speeds and feeds and getting the most out of the machine and the tool. 


In fact, the causes for all these serious troubles are located so far back toward the fundamentals of production — the individual units affording the causes are so seemingly unimportant, and such is the difficulty of recognizing these conditions, buried as they are in a busy shop — that they are overlooked or ignored. 

As a general proposition, the greater the difiiculty of solving such problems the more important and necessary becomes that solution, simply for the reason that in this you are dealing with humane elements to whom is given the opportunity of slowing up in production solely because of that very difficulty that lies within the problem itself and its solution. And yet so fundamental and vital is their importance that they cannot be ignored. 


The Starting Point for Minimizing Operation Costs. 


Investigation of Existing Machinery.— Any plan for the introduction of proper methods for the determination of standard time and the elimination of wasted time must begin by an investigation of the existing shop machinery — an individual report upon each machine tool, especially touching upon the defects, and a recommendation as to what types should be purchased in the future to meet modem production requirements. This is a matter of great importance, but machinery, designed to stand up under the latest high-production requirements, are recognized and listed up at the beginning of the introduction of any new plans, this important matter is liable to be lost sight of later, with the consequence that when the time for purchases of new machinery does come, the older inefficient types are citing to and the shop is further encumbered with old-style tools. 


Nor is the question of securing a more rigid and efficient tool such a simple question as at first appears. Few machine-tool manufacturers are making an earnest attempt to place upon the market tools strong enough to meet the more severe requirements of today. Why? First, because comparatively few have made tests of sufficient scientific worth to determine where the points of greatest weakness really are and how to strengthen them properly. Second — there is the money tied up in old patterns, old stock in the factory bins, in ma- chines going through the process of manufacturing, and finally in finished machine tools carried in the sales rooms. Changes of a radical character would prove a serious matter under such conditions. And, again, the demand of the manufacturer for better and heavier tools has not been urgent enough to force the machine-tool builder into the tremendous trouble that a thorough redesigning of the older types would surely cause. Therefore the latest product of a machine- tool manufacturer is not necessarily adapted to the methods of production that I am advocating. 


Greater driving power is usually the first requirement. Accurate tests have shown that modern lathes, for instance, should have fully double the driving power usually contemplated in their design. This is a point that must be considered carefully. Of course a proper increase in driving power of a lathe, for example, means wider cones, heavier bearings, and stronger heads. Immediately there follows the question of the rigidity of the bed. It is at once apparent that this is a very important point, and yet too little attention has been paid to the design of bed best suited for withstanding the strains and stresses due to the use of new high-speed cutting tools. Solidity is very necessary. The consideration of the need of strength and rigidity should certainly be applied to the tail stock. Slide rests and tool holders should be simple and strong. The tool must be held rigidly under all conditions. The tool posts should be set down lower than is customary in everyday practice. Under modem conditions much greater feeding power is needed. 


But however certain we may be that defects in machine tools have a direct effect upon the rate of production and the cost of the product, existing conditions may prevent purchase of new tools. Inasmuch as I have been through the mill several times with nm-down concerns, I appreciate fully the fact that most manufacturers are obliged, through sheer financial stress, to ignore any scheme, no matter how promising, that involves at the outset a thorough replacement of the existing machinery with the most modern types, even though it can be demonstrated that the latter are 50 per cent more efficient. 


The practical question that confronts many a manager is: "What on earth can I accomplish with my present old' rattle traps' of machine tools? I couldn't buy gold dollars for 98 cents if I had to pay cash, much less spend thousands for replacing my present machinery. I must first make good with what I have. After we are on firm ground we'll talk about stronger and better machine tools." 

True! Very true! A viewpoint very often overlooked by the manager, or by the man who has this work in charge but doesn't have to produce the dollars to "keep the old ship afloat." This latter situation, which is a stern actuality with many a man who is eager to improve conditions, is all compelling and must give shape to the preliminary methods of procedure. This I shall try to keep in mind. 


Granting, however, the hard fact that many concerns are obliged first to dig out the problem, using their existing facilities, it is of all the greater importance that two reports relative to machine tools be made out: — 

First, a report showing what heavier, stiffer, and more efficient types of machines should be substituted for existing types when the proper time comes. 

Second, a full report upon each and every machine tool in the shop, showing its points of weakness and its limitations in cutting speeds, feeds, and depth of cuts ; how it can be strengthened ; a description of the kind of work that should be done on it ; a record of best times on jobs ; a full statement of the best machine tool to substitute for it, and a clear-cut comparison of possible production by the use of the latter machines. 


I warn you again that unless this be done systematically at the start, it probably never will be done ; then as time goes on you will find yourself burdened with many a newly purchased machine tool just as weak and inefficient as the older one it replaces. 


In considering the problems of increasing production in any particular shop, we find therefore that they become problems of devising methods and making tests upon the supposition that existing machines and facilities must be used in regular production — that, however advantageous the latter types of tools, the important question of lowering costs must be considered on the basis of developing to the uttermost the efficiency of the present machinery. We must there- fore keep in mind these points in the building up of our system. The great importance of gathering all our data systematically and of using them scientifically cannot be too strongly insisted upon. 


PEOFIT MAKING IN SHOP AND EACTORY MANAGEMENT 

BY

CHARLES U. CARPENTER

NEW YORK 

THE ENGINEERING MAGAZINE 


1908 

Copyright, 1908 

By JOHN R. DUNLAP 

https://archive.org/stream/cu31924002748576/cu31924002748576_djvu.txt

CONTENTS. 


Chapter I. The Reorganization op a Run-Down Concern 


The Necessity for Analysis of Existing Conditions — ^Advantageous Posi- 

tion of a Well Organized Concern — The Manufacturer with his Eyes Closed — 

The Manufacturer with his Hands Tied — Organizing the Methods of Inves- 

tigation and Analysis — The Usual Defects of Organization, System and 

Methods in Manufacturing Plants — ^The Superintendent — ^The Foremen — 

Job Bosses and Workmen — Systems of Pay and their Effect — ^The Stock 

System — The Order and Tracing System — ^The Cost System — ^Machining 

Methods — Defects of the Sales Department — Defects of Executive Con- 

trol 9 


Chapter II. The Practical Working op the Committee System 


No Ready-Made System is a Panacea — ^Why New Systems so Often 

Fail — Co-operation of the Working Force is Essential — ^The Human Element 

and the Get-Together Spirit — Formation of the Committee System — ^The 

General Factory Committee — Its Personnel — Its Work — Its Meetings — 

Subsidiary CoHimittees — Job Bosses' Meetings — General Foremen's Meet- 

ings — ^The Workmen — Promotions 23 


Chapter III. Reports; Their Necessity and Their Uses 


The Necessity for Reports of Varied Kinds — ^What they should be and 

what they should Cover — A General Outline of the Essential Reports — ^The 

Monthly Analyzed Profit and Loss Sheet — ^The Sales Reports — ^The Factory 

Reports — ^The Cost Reports — ^The Points to be Shown and the Methods of 

Use 36 


Chapter IV. The Designing and Drafting Department 


Results to be Secured — Close Relations with the Tool Room — Require- 

ments of an EflScient Drafting Department — ^Meetings with the Com- 

mittees — Co-operation with Shop Foremen — Standardization in Design — 

Designing for Cheap Machining and Assembling — ^Making and Following 

of Drawings to be Invariable — Reports from Machining and Assembly 

Departments — ^The Use of the Coiimaittee System 42 


Chapter V. The Tool Room; the Heart op the Shop 


The Full Functions of the Tool Room — Systems of Tool Supply — 

Speed of Production in the Tool Room of Vital Import — ^Methods for 

Hastening Production — ^The Choice of the Foreman — Specialization of 

Labor — Standaxdization — Duplication of Standard Parts — Subdivision of 

Labor — ^The Small Shop — Speeding up Tool Production and Checking the 

Cost — Tool-Cost Cards — Examples — ^Method of Use — Tool-Room Commit- 

tee Membership 50 


Chapter VI. Minimizing the Time of Machine-Tool Operations  


The Determination of Standard Times — ^The Concentration of the Work- 

man's Time on Running his Machine — ^The Adoption of High-Speed Steel — 

Causes of Lost Time — The Starting Point in Minimizing Operation Costs — 

Investigation of Existing Machinery — Systematic Report upon Improve- 

ments in Old Machines and Recommendations for Replacements or New 

Purchase 64 


Chapteb VII. Possibilities Attending the Use of High-Speed Steel 

What Percentage of Increase may be Expected in the Output — ^The 

Abundant Provision of Cutting Tools — Standard Shapes for Tools — ^How 

Determined — Forging — Hardening — Form for Records — CooHng — Grind- 

ing — Use of Automatic Grinders 73 


Chapter VIII. The Determination or Standard Times por Machining 

Operations 


The Shop Conditions upon which Standard Times Depend — Tests of 

Times which should be Attained — ^How to Begin — Classification of Parts — 

The Expert Tester — ^His Qualifications — Practical Speeds in Lathe Work — 

In Planer Work — In Drilling — ^Tables — How to Use the Tables — ^The Com- 

mittee at Work — Requirements for Maximum Production by the Work- 

man 83 


Chapter IX. Standard Times for Handling the Work 


The Elements which must be Considered — Causes of Lost Time in Hand- 

ling—Injuries to Stock or Parts in Handling — ^The Use of Standard Boxes — 

Standard Places for Stock and Parts — Records of Handling Times — 

Forms — Setting-up Time— Times for Work on the Machines — ^Time for 

Removing Work from the Machines — ^The Use of Committee Action 94 


Chapter X. Standard Times for Assembling 


Special Difficulties to be Found in this Subject — ^Methods of Procedure 

which Succeed — Examples of Results Secured — ^An Instructive Case 

Described — ^Foremen's Co-operation Essential — How it can be Enlisted. . . . 101 


Chapter XI. Stimulating Production by the Wage System 


The Attitude of the Workman — ^Mischief Caused by Cutting of Rates — 

The True Theory of Costs — ^The Wage Problem in Introducing Standard 

Times — ^How to Get the Workman to Stand for Them — Systems of Pay — 

Day Work — Piece Work — Premium Plan — ^The Differential Plan — ^The 

Bonus Plan — Special Modifications of the Bonus Plan Recommended 109 


Chapter XII. Stock and Cost Systems as a Factor in Profit Making 


The Prime Requisites of a Cost System — Wha,t it should Accomplish — 

The Three Fundamental Problems at a Stock System — A Simple and Suc- 

cessful System Described — ^The Forms and Cards and their Mode of Use — 

Storage Platforms and" what they AccompUsh — Stock-Tracing and Cost 

Sheets — ^Forms — ^How the Data are Used 116 


Chapter XIII. The Upbuilding of a Selling Organization 


The Various Methods of Selling Manufactured Goods Defined — ^What is to 

be Considered in Developing a Selling Force — ^Training of Salesmen — Its 

Possibilities Proved — Development of a Selling System — Salesmen's Demon- 

stration Meetings — A Typical Programme — ^Modes of Stimulating Interest — 

Salesmen' Training Department — Selection of an Instructor— Prepara- 

tion of a Manual — Reports and their Importance — ^Forms — Lists — Adver- 

tising ._ 124 


Chapter XIV. Effective Organization in the Executive Department 

Difficulties Peculiar to the Executive Division — The Personal Element — 

The Use of the Report System — Reports from the Selling Division — ^Forms 

— Factory Reports — ^Forms — ^Executive Reports — ^Forms — The Methods 

Illustrated by an Example and a Typical Programme — ^The Results 

Secured 138 


About Carpenter

https://en.wikipedia.org/wiki/Charles_U._Carpenter


Charles Underwood Carpenter (Indiana, January 1872 – January 15, 1928[1]) was an American business manager, management author, and inventor, known as "one of the earliest advocates of the committee system in factory management."

Carpenter got his degree from Princeton University in 1893, and started his career in industry.

September 10, 2024

Constraint Management - Important Points - Summary - Krajewski - 12th Edition

Chapter 5. CONSTRAINT MANAGEMENT

The Theory of Constraints

  • Explain the theory of constraints.
Managing Bottlenecks in Service Processes
  • Identify and manage bottlenecks in service processes.
Managing Bottlenecks in Manufacturing Processes
  • Identify and manage bottlenecks in manufacturing processes.
Applying the Theory of Constraints to Product Mix Decisions
  • Apply the theory of constraints to product mix decisions.
Managing Constraints in Line Processes
  • Describe how to manage constraints in line processes and balance assembly lines.

Detailed Notes on Each Topic


Microsoft Corporation Case

A constraint is any factor that restricts its output or performance. Capacity is the maximum rate of output of a process or a system. Due to constraint at any operation of a process, the overall performance of the system means overall output suffers. A bottleneck is a special type of a constraint that relates to the capacity shortage of a process and is defined as any resource whose available capacity limits the organization’s ability to meet the service or product volume, product mix, or fluctuating requirements demanded by the marketplace.  In case market demand in the not the limit, the output of a business system or a process is limited by its bottleneck.


The Theory of Constraints
Key Principles of the TOC

The theory of constraints (TOC) is a  management approach that  directs attention of the management to identifying and  actively managing those constraints that are limiting its  profits and effectively using its resources. The process focuses  on the efficiency of  bottlenecks that constrain the system as a whole. TOC methods increase the firm’s profits  by focusing on making materials flow rapid and convert it into sales instead of inventory.

The chief concept behind the TOC is that the bottlenecks should be given special attention and scheduled to maximize their throughput of services or products while adhering to promised completion dates.


SEVEN KEY PRINCIPLES OF THE THEORY OF CONSTRAINTS

1. The focus should be on balancing flow, not on balancing capacity.
2. Maximizing the output and efficiency of every resource may not maximize the throughput of the entire system.
3. An hour lost at a bottleneck or a constrained resource is an hour lost for the whole system. In contrast, an hour saved at a non-bottleneck resource is a mirage, because it does not make the whole system more productive.
4. Inventory is needed only in front of the bottlenecks to prevent them from sitting idle and in front of assembly and shipping points to protect customer schedules. Building inventories elsewhere should be avoided.
5. Work, which can be materials, information to be processed, documents, or customers, should be released into the system only as frequently as the bottlenecks need it. Bottleneck flows should be equal to the market demand. Pacing everything to the slowest resource minimizes inventory and operating expenses.
6. Activating a non-bottleneck resource (using it for improved efficiency that does not increase throughput) is not the same as utilizing a bottleneck resource (that does lead to increased throughput). Activation of non-bottleneck resources cannot increase throughput, nor promote better performance on financial measures.
7. Every capital investment must be viewed from the perspective of its global impact on overall throughput (T), inventory (I), and operating expense (OE).



Managing Bottlenecks in Service Processes


Where a bottleneck lies in a given service or manufacturing process can be identified in two ways. 

A workstation in a process is a bottleneck if 
(1) it has the highest total time per unit processed, or 
(2) it has the highest average utilization and total workload.


The variability in workload  creates floating bottlenecks. In one week,  the mix of work may make one operation  a bottleneck, and the next week  another operation.  This varying bottlenecks  increase the complexity of day-to-day scheduling. In this situation, firms requires  greater slack in various operations to absorb unexpected surges in demand.

Service organizations, such as Delta Airlines, United Airlines, and manor hospitals across the  United States, including the U.S. Airforce  health care system , use the TOC for improvement of performance.

Managing Bottlenecks in Manufacturing Processes

Identifying Bottlenecks
Relieving Bottlenecks
Drum-Buffer-Rope Systems


Identifying Bottlenecks

Identifying the bottlenecks becomes considerably harder when setup times are lengthy and the degree
of divergence in the process is greater in manufacturing.  When the setup time is large, the operation with the highest total time per unit processed would typically tend to be the bottleneck. Variability in the workloads will create floating bottlenecks.  In practice,  bottlenecks can also be determined by asking workers and supervisors in the plant where the bottlenecks might lie, and looking for piled up material in front of different workstations.

Relieving Bottlenecks

The key to preserving bottleneck capacity is to carefully monitor short-term schedules and keep bottleneck resource as busy as is practical. Managers should minimize idle time at the bottlenecks caused by delays elsewhere in the system and make sure that the bottleneck has all the inputs: materials, tools, spare parts etc. it needs to stay busy. When a changeover or setup is large at bottleneck, batch sizes have to be large to reduce number of setups.

The  capacity of bottleneck operations can be expanded through  Investments  in new equipment. The bottleneck’s capacity also can be expanded by operating it more hours per week,  and going from a one-shift operation to multiple shifts, or by hiring more employees and operating the plant six or seven days per week versus five days per week. The bottleneck can be redesigned by industrial engineers and process engineers. Industrial engineers do more periodic small improvements.


Drum-Buffer-Rope Systems


The bottleneck schedule is the drum.  It sets the beat or the production rate for the entire plant and is linked to the market demand.

The buffer is a time buffer that plans early arrival of material  to the bottleneck and thus protects it from disruption due to shortage of work.  A finished-goods inventory buffer is  placed in front of the shipping point to decouple planning of the bottleneck from customer requirement urgencies. The bottleneck production must be optimized to get maximum production from the bottle neck.  

The rope represents the tying of material release to the drumbeat, which is the rate at which the bottleneck controls the throughput of the entire plant. It is thus a communication device to ensure that raw material is not introduced into the system at a rate faster than what the bottleneck can handle. Rope is a device like kanban in Toyota Production System (lean).

Buffer management constantly monitors the execution of incoming bottleneck work.

Illustration
Assume a simple process with three operations. A. B and C. Capacity of A is 750 units per week, Capacity of B is 600 units and Capacity of C is 650 units. B is bottleneck unit to supply production to the market the demand being 650 units per week. Capacity of B has to be used without any waste. Therefore a buffer is placed before B and a finished goods buffer is created to serve the market without disturbing the schedule of B. B is drum, buffer is buffer stock of material before B and the rope is connection between A and the buffer. The material flow is pulled forward by the drumbeat prior to the bottleneck meaning A will produce what is scheduled on B with some advance time delivery plan.. What is produced in B is pushed forward onto C and it will process it immediately and push it to finished goods buffer. 

Thus, DBR specifically strives to improve throughput by better utilizing the bottleneck resource. So e the process batch in the DBR is any size that minimizes setups and improves utilization at the bottleneck and , at non-constrained resources the process batches are equal to what is needed for production as per buffer requirement. 

Transfer batches between operations can be as small as one unit each, to allow a downstream workstation to start work on a batch before it is completely finished at the prior process. Using small transfer batches facilitates a reduction in overall lead time (This is a TPS feature).

Effectively implementing a DBR system requires a good understanding of the TOC principles.

Applying the Theory of Constraints to Product Mix Decisions


The firm’s actual throughput and overall profitability depend more upon the contribution margin generated from the products produced at the bottleneck, therefore the bottleneck method of taking product mix decision will generate more profit. 

In the book example 5.3 illustrates this point. 

Product mix is first calculated to maximize total contribution based on the contribution margin of each product.

Then contribution margin per minute of bottleneck facility is calculated for each product. Product mix is recalculated to maximize contribution from the use of bottleneck facility.

The new total profit margin is $2,490 versus earlier $1,560. It shows the importance of identifying bottleneck and using the bottleneck capacity for realizing the maximum contribution from the plant in taking product mix decision.





Managing Constraints in Line Processes
Line Balancing
Rebalancing the Assembly Line
Managerial Practice 5.1 Assembly Line Balancing at Chrysler
Managerial Considerations

In this section traditional line balancing is only described. No special theory of constraints point of view is given.




Experiential Learning 5.1 Min-Yo Garment Company
Video Case Constraint Management at Southwest Airlines

Process Improvement - Process Industrial Engineering - Relevant Chapters in Operations Management

Process Strategy and Analysis - Important Points - Operations Management - Krajewski - 12th Edition

Quality and Performance - Important Points - Summary - Krajewski - 12th Edition

Lean Systems - Important Points - Summary - Krajewski - 12th Edition

Constraint Management - Important Points - Summary - Krajewski - 12th Edition

Index to Summaries of all Chapters of Krajewski's Book

Operations Management - Krajewski - 12th Edition - Chapter Summaries - Important Points


Ud. 11.9.2024, 2.9.2024
pub. 6.9.2019


Theory of Constraints - Success Stories

 2024 - 40 Years of the book  "GOAL"  first published in the year 1984.

Transforming Tata Motors spares supply chain using Theory of Constraints



Results & Testimonials – Theory of Constraints at Work in Real Companies

We show charts and graphs of some of our customer results

https://www.synchronix.com/results-testimonials/



Auto Engine Parts Factory: A TOC Success Story

Rudolf Burkhard   

September 25, 2023


At the start, the company was advised to negotiate with the union and make sure the constraint machine is running all the time without any breaks for lunch, tea and toilet going. Once arrangement was done to keep it running, 30% increase in production was obtained. A success story to being with.


https://rudolfburkhard.com/2023/09/25/auto-engine-parts-factory-a-toc-success-story/




Manufacturing + TOC = 400 success stories YouTube presented by Dr. Lisa Lang

TOCICO

Premiered on 3 Aug 2022

Can adding a little TOC to the production process of custom manufacturers get results? What if the manufacturers are highly custom job shops and machine shops? What if the TOC Consultant never steps foot on site? What if no software was used? Drum Buffer Rope was simplified, customized, and implemented remotely via an online coaching program from 2007 to 2020 at over 400 custom manufacturers and job shops. This presentation reviews the learnings and results. Subscribe today for more videos like this. Want even more TOC case studies like this? Become a Member today and continue your journey with a TOCICO Membership housing one of the largest repositories of TOC content.


Business Transformation at Jindal Steel & Power Using TOC Measurements and Weekly Review Process

TOCICO
23 Aug 2021
This case study shows the focus, alignment and speed of applying TOC. Declining global steel prices combined with policy changes in India resulted in a challenging 2015 for Jindal Steel & Power Ltd (JSPL). Management concluded that increasing sales alone was not the solution—operational cash flow had to be improved as well. This is the story of JSPL’s TOC journey to increased cash flow through improved gross contribution and reduction in working capital. You’ll learn the critical measurements put in place to drive new behavior and more importantly, what each different division had to cease immediately in the pursuit of the greater goal. Watch GM's full presentation for an update on their progress and latest success.


Shelja Jose Kuruvilla

Create, Curate and Disseminate Knowledge| Vector Consulting Group

November 14, 2016

https://www.linkedin.com/pulse/transforming-tata-motors-spares-supply-chain-using-theory-shelja-jose/


Godrej Consumer Products

https://www.linkedin.com/pulse/godrej-consumer-products-team-presents-washington-theory-chaudhari/


2011

Don't know what's holding your company back? 

Theory of Constraints might give you the answer.

Dec 16, 2011,



Managing and Improving Coca Coca Bottling in Brazil with TOC
Presented By: Bill Taylor Taylors Of Curitiba
18 November 2009, 2009 TOCICO Conference
PDF file





1991
Ford Motors


Case studies search list


















September 9, 2024

Tata Steel - Applications of Theory of Constraints (TOC) in Continuous Improvement, Productivity Improvement and Industrial Engineering

Thefollowing are the top ten practices on the EDGE portal, ranked according to AdvantEDGE points, which areearned on the basis ofthe number of views, shares, likes,commentsand discussions related to the practice.

Number one is:

1 Application ofTheory ofConstraints in SupplyChain Tata Steel


So TOC application practice is the most read application in the database of best practices in TATA group companies.

To know more about other exciting activities on the Portal or foradditionalinformation related to the Tata Best Practices Initiative, visit

https://www.tatabex.com/best-practices 


Tata Steel launches 'ASPIRE Unlimited' Campaign based on the 'Theory of Constraints'

Bangalore, June 02, 2005

Tata Steel launched "ASPIRE Unlimited" as part of its continuous march towards excellence in all spheres of its business processes. The programme was launched by Mr B Muthuraman in the presence of Dr Eliyahu M Goldratt.  The Company has appointed Goldratt Consulting Limited of UK for implementing its 'Viable Vision Programme', which has been branded by Tata Steel as "Aspire Unlimited" and will run as a campaign internally. It is based on the principles of "Theory of Constraints" (TOC) developed by Dr Eliyahu M Goldratt.


Dr Goldratt explained that the Theory of Constraints looks at business problems from a system level, in contrast to some other methods that are focused on specific processes. Focusing on Viable Vision implementations, he further emphasised on the need to identify and capitalise on those few elements that govern an organisational system.


The programme is expected to deliver measurable improvements in operational performance and profitability. The scope of the programme is primarily aimed at steel business unit, which includes mines, collieries, iron and steel operations. The programme will also include the Company's Project Management and profit centres like Tubes Division, Wire Division and Tata Growth Shop. The entire programme will operate under the overall ASPIRE programme - the Tata Steel brand for integrated set of improvement interventions adopted by the company since 2003. The ASPIRE programme aims to ensure a manifold acceleration in the pace of growth and make Tata Steel Economic Value Added (EVA) Positive on a sustainable basis.


https://www.tatasteel.com/media/newsroom/press-releases/india/2005/tata-steel-launches-aspire-unlimited-campaign-based-on-the-theory-of-constraints/

2007

Bimlendra Jha keynote on Tata Steel India's Viable Vision journey using Theory of Constraints

2007 Keynote.


In this keynote, Bimlendra Jha, presents the inspirational history ofTata Steel with a specific focus on their Viable Vision journey where they partnered with the team from Goldratt to use Theory of Constraints to dramatically accelerate and increase profitability and ROI.

https://www.youtube.com/watch?v=hddydplrUYw


Applying TOC in Tata Steel - Bimlendra Jha - 2008 Presentation


2017

Tributes to Eli

Bimlendra Jha's comments and phtos are also there.

https://tocpractice.org/conferences/2017/04/09/tribute-to-eli/


2020

Interview with Mr. Bimlendra Jha, Tata Steel - What does it take to become a TOC company?

April 1, 2020


Mr. Bimlendra Jha is a B. Tech in Ceramic Engineering from IIT Varanasi and a Post Graduate Diploma in Business Management, Marketing and Finance from XLRI Jamshedpur. He has been associated with Tata Steel Ltd. for nearly three decades and over the past six years, he has held multiple leadership roles including CEO Tata Steel UK and Executive Director on the Board of Tata Steel Europe, looking after operations in UK, Sweden, and Canada. He has been actively involved in strategic portfolio restructuring and supply chain transformation in Europe and market development, sales and brand management, and innovation in construction practices in India. This includes the design of new processes in Marketing, Value Selling, Channel Loyalty programs and launch of new product concepts such as SuperLinks and BuildWise.


https://www.tocico.org/events/EventDetails.aspx?id=1342409&group=














September 6, 2024

Cost Reduction Focused Productivity Improvement and Management

 

TPS

Jidoka

Automation

Autonomation

Reducing manpower devoted to observing automatic machines

Attend to a machine only when it sounds alarm and asks you  to take care of it.

Work station improvement

Motion study

Plant Layout Improvement to Reduce Transport and Material Handling

Process Chart Analysis and Improvement

Inventory Reduction Focused Productivity Improvement and Management

 


TPS

JIT

Reducing Economic Batch Quantity through Setup Time Reduction.

Reducing Safety Stock through Reducing Breakdowns, Accidents and Defects.

December 9, 2023

Producrt Industrial Engineering - GAN PCB

 Optimizing PCB layout for GaN transistors

The fast switching speed of GaN transistors brings various advantages ranging from higher efficiency to power density but can make PCB layout more challenging.


For years, the standard solution has been to slow down the switching speed of power devices, coming at the cost of increased power consumption and reduced efficiency. Obviously, this solution is no longer ideal.


The Top 10 recommendations for PCB layout optimization at a glance

https://www.infineon.com/cms/en/product/promopages/gan-pcb/


Detailed PDF

https://www.infineon.com/cms/en/product/gated-document/optimizing-pcb-layout-for-hv-coolgan-power-transistors-8ac78c8c8929aa4d0189ba64ffb262a2/


As a global semiconductor leader in power systems and IoT, we enable game-changing solutions for green and efficient energy, clean and safe mobility, as well as smart and secure IoT.


We make life easier, safer, and greener. Together with our customers and partners. For a better tomorrow.


In the 2023 fiscal year (ending 30 September), Infineon reported revenue of more than €16 billion with a workforce of some 58,600 people worldwide.

https://www.infineon.com/cms/en/about-infineon/company/



2023

Optimizing PCB Layout for HV GaN Power Transistors


Abstract:

Printed circuit board (PCB) layout has been an integral aspect of power electronic design since the first switching power supplies appeared more than 40 years ago. Regardless of the transistor technology, the parasitic impedances added to the circuit by the PCB layout must be understood and managed for the circuit to function correctly, reliably, and without causing undue electromagnetic interference (EMI).

Published in: IEEE Power Electronics Magazine ( Volume: 10, Issue: 2, June 2023)

Page(s): 65 - 78

Date of Publication: 28 June 2023

https://ieeexplore.ieee.org/document/10167536











August 27, 2022

Understanding Japanese Management - Publications in English

 

First-generation writings on Japanese management:  various published articles, then books, notably Ezra Vogel’s Japan as Number One (1979), William Ouchi’s Theory Z (1981), and Richard Pascale and Anthony Athos’s The Art of Japanese Management (1981). 



1979

Book: Japan As Number 1: Lessons for America

Ezra Vogel

My first inclination was to examine how such Japanese virtues as hard work, patience, self-discipline, and sensitivity to others. contributed to their success. But the more I examined the Japanese approach to modern organization, the business community, and the bureaucracy; the more I became convinced that Japanese success had less to do with traditional character traits than with specific organizational structures, policy programs, and conscious planning. For several years I have been. wrestling with the problem of understanding Japan’s successes, and this book is the result of my intellectual labors.


William Ouchi’s Theory Z (1981)

Theory Z - Type Z Organizations

https://nraombakc.blogspot.com/2012/02/theory-z-type-z-organizations.html

Richard Pascale and Anthony Athos’s The Art of Japanese Management (1981)

https://books.google.co.in/books?id=fEFhBQAAQBAJ&pg=PT133#v=onepage&q&f=false


https://books.google.co.in/books?id=7A3SBgAAQBAJ&pg=PA385#v=onepage&q&f=false


B. Keys, T. Miller, ‘The Japanese Management Theory Jungle’, 

Academy of Management Review, Vol. 9, No. 2, 1984, p. 342.


THE ART OF JAPANESE MANAGEMENT REVISITED,

DES DEARLOVE,

BUSINESS STRATEGY REVIEW ISSUE 3 – 2011



TOMASZ OLEJNICZAK

Japanese Management: 50 Years of Evolution of the Concept

ACTA ASIATICA, VARSOVIENSIA

No. 26, 2013



REFLECTING ON JAPAN’S CONTRIBUTIONS TO MANAGEMENT THEORY

D. Eleanor Westney

Sloan Fellows Professor of Management Emerita, MIT Sloan School of Management

Westney, Eleanor. "Reflecting on Japan’s contributions to management theory." Asian Business & Management 19, 1 (July 2019): 8–24 © 2019 Springer Nature Limited






January 29, 2021

Technology Management - Case Studies

 

Lucas TVS 2011


Technology development


Technology development has been slow in the initial years and improved pace after 1990.  The in house R&D set up  way back in 1978.  Lucas TVS has continuously evolved and ventured into new technology and product domains from time to time. 


Technology Management

LUCAS TVS had more than 250 qualified and experienced staff in the Research and Development Division. The New Product Development Process of Lucas TVS is carried out on the basis of concurrent engineering, design for manufacture and assembly, design to target cost, design for reliability, meeting the requirements of TS16949. This NPD process has been developed with the help of Japanese consultants.  The  requirements of customers are transformed into new products by the Engineering R&D teams. 

Product design is carried out using 3D software such as Pro/E, Catia, Unigraphics as required by the customers for easy interaction and on-line design reviews, while designing Lucas TVS products for the engine and vehicle systems of the customers. Computer aided engineering is extensively used for product design and development, through computerized electromagnetic design, motor design, stress and fatigue analysis, optimization of design, reliability engineering, etc. Techniques like FMEA (failure mode and effect analysis) are used extensively to detect potential failures in design and process. Test facilities have been set up in-house.   Lucas TVS has set up an extensive benchmarking area for benchmarking of its products with competitors. This helps R&D engineers to keep track of latest techniques being used by competitors and continuously update product technology and quality. 

The Head (R&D) is primarily responsible for technology management function. He reports directly to the CEO. The role is at a higher level plays a crucial role in the decision making process. He is responsible for strategic technology planning, initiating new ventures, product upgradation and improvements and new product developments. He looks after the engineering & design function, new developments, tool design.  This helps to have an overall control over the major activities in a new product introduction set up. 

Lucas TVS employs the autonomous cross-functional team structure called- NPIT (New Product Introduction Teams) for new projects. In the NPIT, people from different functional areas form the team and the team is headed by a General manager designated for the new projects. The team is disbanded after successful implementation of the project. Technology absorption from TA/JV partners is done through short-term visits of Lucas TVS engineers to technology partners.


 The industry Lucas TVS operates being technology intensive, technology forms a part of the strategic plan. Both medium term and long term technology plans are prepared for product, process and businesses. Head (Business planning) is responsible for strategic planning & business development. 

He works in close coordination with Head (R&D), Head (Marketing) & Head (operations). This helps in integrating the business strategy, technology development strategy and operations strategy in a seamless manner. Specific targets for parameters such as Localization, Quality improvement productivity improvements etc are fixed up on yearly basis. 


Business Performance

 Lucas TVS has been showing impressing sales performance over the years. Lucas TVS ranks 2nd among the auto electrical component manufacturers in India. Exports contribute about 8% of sales as on 2007-08; it has grown by about 4 times in the last 5 years. Lucas TVS intends to improve it further by 2010. 

Lucas TVS has been able to develop several new products simultaneously (distributor, starters, alternators, sensors) for all the MPFI models for major customers within a short time span. The productivity has increased after the single piece flow concept was introduced by Lucas TVS.  


Over 70% of the current sales turnover is realized from new products developed by in-house R&D. Lucas TVS was awarded the Golden Trophy for Technology Excellence by Automotive Component Manufacturers Association of India in 2007, among the automotive component manufacturers. 

 SAP-LAP analysis

Context

Technical collaboration on a select basis and emphasis on creation of a strong manufacturing base 

Situation

 Lucas TVS is a leader in auto electrical segment and has expanded its product portfolio gradually 

 A strong manufacturing base and has been able to achieve economies of scale

 Emphasis on In-house R&D, to achieve core competency in key technology areas


Process of Technology management

 Impressive track record in technology transfer, adoption and adaptation

 Emphasis of technology management in corporate strategy

 Strong In-house R&D and manufacturing facilities provide the strength for bargaining

 TA/JV has been a preferred route for acquisition of new product technology

 Cost control by effective implementation of localization programs within specified time frame

 Successful project management by forming NPIT (New product Introduction Teams)

 Continuous improvement of manufacturing technology by adopting techniques of TPM, TQM

Learning Issues:

 Lucas TVS has been able to achieve tremendous growth after forming strategic alliances / joint ventures in different areas

 It has been able to plan its Technology strategy well and has been able to align its technology strategy and business strategy.

 Technology forecasting and timely implementation of plans has helped Lucas TVS to stay ahead of the competition.

 Setting up of green field projects has also helped Lucas TVS to bring in new technology and induce a new culture for betterment of the company.

 A highly skilled and motivated workforce has contributed in a big way for success of Lucas TVS.

 Parallel strategy of TA/JV and in-house R&D has helped Lucas TVS to address varied customer expectations like low cost (optimized performance) or higher reliability and high performance

 Investing in R&D at an early stage has helped Lucas TVS to be able to benefit in terms of garnering high chunk of revenue from indigenously developed products

Recommended actions:


 Lucas TVS may explore the option of technology acquisition to develop capability in new technology areas

 With increasing demand in the automotive sectors, Lucas TVS may need to look at higher capacity production lines with minimum investment. 

 Need to continue to invest in R&D for traditional as well as future technologies Expected performance:


 With sustained focus, Lucas TVS can become an Indian multinational in next decade.


Sahoo, T., Banwet, D. K., & Momaya, K. (2011). Strategic technology management in the 

auto component industry in India: A case study of select organizations. Journal of Advances in 

Management Research,8(1), 9-29.



Analysis of Technology Management Using the Example of the Production Enterprise from the SME Sector☆

Elลผbieta Krawczyk-Dembicka

Procedia Engineering

Volume 182, 2017, Pages 359-365

https://www.sciencedirect.com/science/article/pii/S1877705817312481


Technology Management - Case Studies

https://www.macmillanihe.com/companion/Cetindamar-Phaal-And-Probert-Technology-Management/learning-resources/Case-studies/

Part of the book

Technology Management: Activities and Tools

Dilek Cetindamar, Rob Phaal, David Probert

Macmillan International Higher Education, 20-Jan-2016 - Business & Economics - 256 pages

The Technology Management (TM) discipline has a history of more than 50 years. It is inherently interdisciplinary and multifunctional, and when managed correctly it can deliver a decisive competitive advantage.

https://books.google.co.in/books?id=gG2eCwAAQBAJ



A simple case study on core concepts of technology management. HP is the firm under study.

Jul 24, 2009

https://www.slideshare.net/divi.lekha/a-case-study-on-technology-management


2005


https://pubsonline.informs.org/doi/pdf/10.1287/ited.6.1.13


Phaal, R., Farrukh, C.J.P. and Probert, D.R. (2001), "Technology management process assessment: a case study", International Journal of Operations & Production Management, Vol. 21 No. 8, pp. 1116-1132. https://doi.org/10.1108/EUM0000000005588





















June 28, 2020

Zero-Based Productivity Management

Online MBA Management Theory Handbook 



Last Post of Operations Management A to Z Articles - 2019 A to Z Blogging Articles

_____________

_____________

Zero-Based Productivity - Cost Savings


When implemented throughout the enterprise, zero-based productivity can not only create a fit-for-purpose cost structure but also free up funds to invest in strategic growth initiatives. When zero-based productivity is rolled out as an overarching philosophy to promote a high-performance culture, an organization can achieve cost savings of 10 to 40 percent (depending on the spending area) while allocating more resources to strategic priorities. - McKinsey Consultants


Zero-Based Productivity Management


McKinsey consultants provided the concept of zero-based productivity based on zero-based budgeting to provide a new direction to productivity management.

The idea of zero-based productivity proposed by them has application in planning, organizing, resourcing, directing, and control, the five functions of management.

Budgeting basically is planning. The consultants published an article explaining its role in organizing. Resources have to removed from low value generating activities and have to be allocated to new strategic initiatives. That is the main theme of zero-based productivity. The culture of the organization needs to be changed. Culture is basically behavior and hence it is part of directing function of management. The whole exercise is aimed at increasing effectiveness and efficiency. Hence control action is required to see that new plans are implemented through new organizations, newly acquired or modified resources, new behavior or processes. Also measurement of results has to be done and to take feedback based action to move the enterprise in the desired direction.


Zero-based Productivity - Basic Concept

Zero-based productivity: The power of informed choices

July 2018  Article

In this article, the first in a series, we examine the distinctive elements of zero-based productivity.

When implemented throughout the enterprise, zero-based productivity can not only create a fit-for-purpose cost structure but also free up funds to invest in strategic growth initiatives. When zero-based productivity is rolled out as an overarching philosophy to promote a high-performance culture, an organization can achieve cost savings of 10 to 40 percent (depending on the spending area) while allocating more resources to strategic priorities.

Internal and external benchmarks, from relevant peers as well as across internal markets and functions, are used to intelligently challenge current spending levels. These comparisons provide business leaders with the perspective to gauge the full potential savings available to their company and turn that potential into year-over-year targets for each function and market. 

Zero-based productivity is an exercise to realign a company’s profit-and-loss statement with its strategic priorities. The organizaton may decide to operate  with a smaller cost base or by redirect spending to more productive investments. The structural and cultural elements of zero-based productivity help to guide organizations and their management teams to achieve performance improvements. The journey toward productivity is more than a planning and budgeting activity, Executives should view it as a significant mind-set shift initiative that requires change management and system improvements to help employees deliver more than they ever thought possible.

About the author(s)
Sรธren Fritzen is a senior partner in McKinsey’s Copenhagen office; Matt Jochim is a partner in the London office; Carey Mignerey is a partner in the Atlanta office; and Mita Sen is an associate partner in the Zurich office.
https://www.mckinsey.com/business-functions/operations/our-insights/zero-based-productivity-the-power-of-informed-choices


Building the zero-based culture
November 2018  Article
By Ronald Falcon, Hanspeter Hueter, Matthew Maloney, and Abhishek Shirali

ZBB evolves into zero-based productivity (ZBP), a performance-improvement dynamo that transforms the entire enterprise—achieving the ideal of fact-based, data-driven decisions that boost sales, reduce waste, and accelerate improvement year after year.

Zero-based productivity—Marketing



Zero-based productivity—Marketing: Measure, allocate, and invest marketing dollars more effectively
August 2018  Article
By Jeff Jacobs, Roberto Longo, Mita Sen, and Bjรถrn Time

Marketing is a function for consumer engagement,sales and revenue. Its costs can account for more than 10 percent of revenues in many consumer-facing businesses and this cost has to be understood and spent wisely. Waste in marketing cost has to be identified and eliminated.


Zero-based Productivity - Organization Redesign


Zero-based productivity—Organization: Using zero-based principles to forge a purpose-built organization
December 2018| Article
By Onno Boer, Shaun Callaghan, Mita Sen, and Alexander Thiel


McKinsey consultants have published a series of articles on zero-based productivity. This article is on zero-based organization.

Using zero-based principles as a lens to assess organization combines planning for  effectiveness  and efficiency. With this approach, companies can capture significant efficiencies while upgrading capabilities and increasing effectiveness across functions. These principles also can ensure that the highest-value roles within the organization are clearly identified and staffed with the most qualified workers.

Traditional approaches to operations can miss opportunities to harness technology to boost efficiency. Assuming the current organizational structure as a starting point  can hinder efforts to improve efficiency and reduce costs. Zero-basing organization, using  zero-based principles as a lens to reshape organizational structure and operations, can unleash greater productivity. In the zero based organized structure,  enterprise ensures that staff and resources are allocated to the highest-value areas of the business.


Zero-based Productivity - The Supply Chain Redesign



Zero-based productivity: Going granular and end-to-end across the supply chain
March 2019  Article
By Matt Jochim, Rehana Khanam, Cecilia Martensson, and Curt Mueller


By undertaking zero-based productivity improvement programes in supply chain, businesses have achieved overall cost savings of up to 50 percent. Rigorous productivity management and the right productivity improvement methods and techniques have to be in place to capture and sustain this level of improvement.
https://www.mckinsey.com/business-functions/operations/our-insights/zero-based-productivity-going-granular-and-end-to-end-across-the-supply-chain



Related article

Productivity Management in Operations Management