Front cover image for Factory physics for managers how leaders improve performance in a post-lean six sigma world

Factory physics for managers how leaders improve performance in a post-lean six sigma world

A guide that cuts through the hodgepodge of copycat initiatives, overblown buzzwords, confusing mathematics, and misguided software. It helps you: achieve best possible profit, cash flow, and customer service; attain highest return with existing Lean, Six Sigma, and ERP initiatives; and simplify management of complexity using existing IT systems.
eBook, English, 2014
[Verlag nicht ermittelbar], [Erscheinungsort nicht ermittelbar], 2014
1 online resource (2923 Seiten)
9780071822503, 9780071822619, 007182250X, 0071822615
1030396144
Prologue 1The Book in Brief 1Why Is This Book Needed? 2CHAPTER 1 Science—Use It or Lose 5Of Theories and Buzzwords 6Toyota and Science 9How Toyota Did It 10Batch and Queue Production 14A Balanced Approach 15The Track Record: Lean and Six Sigma 15A Confused Landscape 16Boeing’s Moving Assembly Line 18Looking Ahead 22CHAPTER 2 The Nature of Business—A Secret Hidden in Plain Sight 25Leading Performance Improvement More Productively 27Tradeoff Illustrations 31Leadership and Tradeoffs 34The Factory Physics Approach 34CHAPTER 3 Practical Science for Leaders 37Knowledge and Science 37Science, Math, Software, and Intuition 40Practical Theory 45The Value Stream: Demand, Stocks, and Production 46Buffers 50Types of Buffers 51Conceptual Illustrations: Something or Someone Is Always Waiting 53A Manager’s World: Environment, Tactics, Controls, and Measures 60Putting Practical Science to Practice 65Defi nitions 65Factory Physics Science: As Simple as Possible but No Simpler 69Advancing the Practical Science of Management 70The VUT Equation 72Cycle Time versus Utilization Graph 74Production and Stocks 80Little’s Law 82Production-Flow Graph 84Variance of Replenishment-Time Demand Equation 92Tradeoff Plot: Inventory versus Fill Rate Graph 98Effi cient Frontiers 100Insights from the Tradeoff Plot 104Visual Management of Stock-Point Performance 106Stocks and Flows, the Lot-Size Graph 108CHAPTER 4 Practical Math for Managers 113Defi ning Terms 114Modeling Stocks 115A Perfect World 115Replenishment Times 116Demand 118Forecast Error and Lead Time 120Inventory Performance Measures 123Computing Inventory Policies 133Inventory in an Assembly System 135Modeling Flows 137Little’s Law 137Capacity Analysis 138Overall Equipment Effectiveness 144Best-Case Performance 146Effect of Variability 147Measures of Variability 150Queuing Effects 151Total Cycle Time 154Raw Process Time 155Move Time 156Shift-Differential Time 156Batch Time 157Pull Systems 160Combining Stocks and Flows 163Cash-Flow Optimization 165Examples of Cash-Flow Optimization 166Conclusions 167CHAPTER 5 Profit, Cash Flow, and Factory Physics Science 169The Value-Added Fantasy 172Financial Statements and the Science of Operations 176Financial Performance Driven by the Science of Operations 179Contribution Margin at the Bottleneck 179When Lean Manufacturing Adds Cost 185Inventory Optimization 188Managing the Portfolio of Buffers 190Marketing and Operations Strategies Drive Financial Results 195CHAPTER 6 Operations Strategy and Planning 197Operations Strategy 197Strategy 198Tactics 199Controls 199Measures 199Execution 200Information Technology Control and Control Limits 200Factory Physics Sales and Operations Planning 202S&OP Event Sequence and Participants 203S&OP Meeting Practices 208S&OP+ 211S&OP+ Process 212CHAPTER 7 Implementing Tactics, Controls, and Measures for Optimal Results 219Demand Tactics and Controls 221Describing and Forecasting Demand 221Lumpy Demand 222Inventory Tactics 224Inventory Strategy Considerations 225Capacity Considerations 225Current Performance versus Predicted Performance 226Strategic Options 227Tactics for Inventory Management 232Inventory Control 235Capacity Tactics 240Utilization 241WIP Control and CONWIP 245Virtual Queues and Due-Date Quoting 248Rework and Scrap 251Response-Time Stratagems 254Predictive Control Using MRP/ERP Systems 257Common Practices 257MRP for Inventory Control 261MRP for Production Control 265Dynamic Risk-Based Scheduling 265Dynamic Risk-Based Scheduling inAssemble-to-Order Environments 271Measures Alignment and Insight 277CHAPTER 8 Leadership, Measures, and Culture Change 283An Approach to Sustainable Leadership 285A High-Level Plan So That Strategies Can Be Shared and Understood 288Vision and Mission 289Critical Strategies 290Monthly or Quarterly Plans to Establish Prioritized Initiatives 291Inventory Optimization 292Utilization Targets 293Weekly Scheduling Meetings to Plan the Work 295WIP Caps 296Due-Date Quoting 297Weekly Operations Meetings to Check Progress 298Daily Mechanisms for Feedback 301Personal Plans So That Individuals Understand Their Roles 303CHAPTER 9 Examples from Industry 307Learning to See—Farther 307Beyond ABC—Optimal Inventory Policies 316Reducing Cycle Times in a Traditional Pharmaceutical Plant 320Restoring Customer Service in a Fabrication and Assembly Plant 325Increasing Throughput in a Biopharmaceutical Facility 330Dynamic Risk-Based Scheduling in the Textile Industry 331CHAPTER 10 Final Word on Factory Physics Science (for Now) 339Quick Wins 342Operations Strategy Alignment with Business Strategy 343Absolute Benchmarking 343High-Level Assessment of Utilization 344Bottleneck Analysis 344Potential for WIP Cap Deployment 346High-Level Analysis of Lead Times 346ERP/MRP Mechanics 347More Complex Implementations 347A Large Company Implementation 349Alternative Histories 351The Future 353Notes 355Acknowledgments 358Index 359