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Genius , Guru to

industry

Management- a Science not

an Art

Introduced the concept of

ongoing improvement.

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Net Profit

Return On Investment

Cash Flow

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On being called by Alex, Jonah gave

him the 3 money measurements:

Increase

Throughput

Decrease

Inventory

Decrease

Operational Expense

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Gathers focus group for

operational solutions

Several concepts which are

polar opposites from general

business operations.

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Jonah reveals that a balanced

plant is where the capacity of

every resource is balanced

exactly with demand from the

market.

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A series of events

Predictive information that

cannot be determined precisely.

Interlinked.

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Final throughput-measured by rate

of slowest operation.

Inventory should be minimized.

Operational expense must be

conserved.

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Bottleneck - Capacity = or

than the demand placed upon it.

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Maximum speed = speed of theslowest operation

Bottlenecks must be identifiedand improved if the process is to

be improved.

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Allows management to take actionto alleviate the constraint in thefuture

Reduce cycle time

Improve manufacturing cycle

efficiency (MCE)

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Make sure bottleneck time is not

wasted

Take the load off the bottlenecks

Quality controls

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Types of elapsed time

Setup

time

Process

time

Queue

time

Wait

time

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15% increase on sales promised

Cutting the batch sizes to half.

Gets his plants improvement

marketed

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Manages a huge contract

Accomplishes an increase ofabout 17%

Promoted to the division head.

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Define

Goal

Define

Measurements

Determine

Bottlenecks

Relieve stress

from bottlenecksand increase

productivity of

bottlenecks

Increase

Sales

Cut batch

sizes in half

Reduce lead

times

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Minimum one constraint at atime in a system

Over time constraints maychange

The 5 focusing steps of theory ofconstraints are:

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Identify the systems

constraints.

Decide how to exploit

the systems constraints.

Subordinate everything

else to the decisions of

Step 2.

Elevate the

systems

constraints

If a constraint is

broken in Step 4,

go back to Step 1.

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Improves capacity decisions inthe short-run

Avoids build up of inventory

Improves communicationbetween departments

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Negative impact on non-constrained areas

Ignores long-run considerations

Not a substitute for otheraccounting methods

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Global principles ofmanufacturing

Helps to bring order and avoidchaos

Not only applicable tomanufacturing world

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Each concept and theoryelongated

Extremely technical

Lots of thinking required.Difficult to read at one go