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What are Lean Thinking & TOC?

Through the synthesis of the Theory of Constraints with Lean Thinking tools, continuous improvement efforts and ultimately, business performance improvement are no longer measured in years, but weeks.

The Five Steps of focusing, Theory of Constraints

Identify the constraint

• This is the weakest link in the chain from supply to market, usually a physical resource, a policy or a rule

Exploit the constraint

• Make the constraint do the right work, target effectiveness not efficiency

Subordinate the constraint

• Make all other organizational functions and activities support the constraint, no exceptions!

• Measure function performance on their ability to keep the constraint properly fed

Elevate the constraint

• Once the constraint is under control and the system is stable it is possible to elevate the constraint

Prevent inertia - go back to step one

• Elevation often means the constraint will move so loop back to step one and continue the on-gong improvement loop

(Adapted from Dr Ted Hutchin)

 

The Lean Thinking Road Map

Define value from the customers perspective

• Understand value in terms of the whole product offering
  • Why customers do what they do

Identify and understand the product’s value stream

• Map the value stream using full systems analysis
  • Product development > order taking > production > delivery
• Review the value stream and identify waste at every step
• Identify the waste free cost of the product.

Make Value flow

• Focus on the value adding elements
• Remove impediments to flow, physically reorganize for flow.
• Eliminate waste and back flow (scrap/ rework/ stoppages)

Make the shift to Pull

• Challenge the prevailing realities
• Drastically reduce change over times and batch sizes
• Flow only when pulled by the next step
• Strive to respond daily to daily ordering from customers

Strive for Perfection

• Create a vision of perfection through idealized redesign
• Plan actions to approximate the vision as closely as possible
• Plan backwards from the ideal to the present.

(Adapted from Womack & Jones)