The Goal

https://gyazo.com/61298237c85e6bc1926cb9804b0ee797

The Goal = corporate goal = to make money.

There are too many different indicators, especially in the management of a factory.

As a result, we make the mistake of focusing on something that is not a measure of the achievement of this "making money"

Especially bad for "occupancy rates".

[Example of Incorrect KPI setting

Financial Indicators

Values commonly used in factories, such as the number of units produced per hour, are not directly related to this financial indicator.

Goldratt's proposed indicators

Reducing production capacity by 100% to match market demand reduces throughput and increases inventories

You can slow down to suit the situation, but you can't go faster.

As a result, statistical variation is not averaged and lags accumulate

Throughput is defined by [bottleneck

Improve efficiency of bottlenecks

Devise a break time so that the machine does not stop.

Don't create something you won't need right away.

Do quality inspections before bottlenecks.

Reduce bottleneck load

If we can work on it in other ways, we'll channel it there.

Increasing non-bottleneck utilization creates inventory at the expense of operations.

Non-bottlenecks can afford to make more than the bottleneck can handle

Throughput does not increase because it is determined by bottlenecks

As a result, work-in-process inventory builds up.

Pace of bottlenecks determines overall material input timing (drums)

Materials needed in the process after the bottleneck should reach the bottleneck by the time the materials pass through the bottleneck to get there

Reduce work-in-process inventory before bottlenecks by not feeding front-end processes at a rate faster than the bottleneck can handle (rope)

Accidents and other unforeseen statistical fluctuations are not a problem because there is power outside the bottleneck, but they are a problem when the bottleneck is affected, and there is a buffer to prevent the bottleneck from stopping.

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