Lean Business Specialists - Nestadt Consulting

Goldratt

This section deals with the remarkable contributions of Eli Goldratt. Sometimes the Goldratt ideas have been seen as being in conflict to Lean operations. In fact, there is a remarkable synergy. Possibly the only real conflict is in the use of OPT, black-box type, software rather than JIT style visual control. (OPT was the computer based finite scheduling package originally developed by Goldratt, but now owned by STG). In particular the Theory of Constraints (TOC) principles, which have developed from OPT, have been used by many successful lean organisations, even though they do not use the software.

In an excellent paper, Moore and Schienkopf explain the synergy between TOC and Lean. TOC is able to identify the constraints that Lean is then able to target for waste reduction. Both are logical and pragmatic. Both share the goal of flow and throughput. TOC is better at identifying that handful of potential improvements that will make a real difference. Lean has a battery of useful tools and an attractive philosophy. Lean's mapping techniques enable one to understand the system and its dependencies more clearly. TOC helps to identify and quantify the opportunities without taking the "leap of faith" sometimes associated with some lean implementatoins. Both encourage pull rather than push. But in some circumstances, for example where demand is erratic, the "drum buffer rope" may be more effective than kanban.

Throughput, inventory, operating expense

Dependent Events, Statistical Fluctuation

Constraints, bottlenecks and the synchronous rules

Drum, Buffer, Rope

Theory of Constraints and Thinking Process

The above are extracts taken from the book "The Lean Toolbox" available through Nestadt Consulting
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