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Beyond the Giants (17)

Updated: Oct 12, 2022

Conditions for survival in the manufacturing industry in VUCA era


Satoru Murakami

CEO Goal-System consultants Inc.,



Knowing how to learn (Dr. Goldratt's thinking procedure)


Last time, I explained the "essence" and its "application", and the method of separating "hypotheses" and "conditions" that determine the application method, which were discussed in Dr. Goldratt's paper, "Standing on the shoulders of giants".


Now, let's relive this procedure with the method that Dr. Goldratt challenged in order to achieve the purpose of "improving the flow".


In the paper, it is repeatedly stated that the change of era from JIT to TOC changes from a stable and relatively stable environment to an unstable environment and the resulting imbalance.


If you apply this procedure and think about it

  1. Confirm our essential purpose ⇒ The universal "goal (principle)" is to improve the flow (Flow is No1 consideration)

  2. Confirm the hypothesis and conditions that are based on the basic procedures that have been applied so far. ⇒TPS (including the Kanban method) requires three stability (product demand, production process, factory load).

  3. Determine how the environment has changed ⇒ Today's environment is more unstable than the environment assumed by TPS, and the three stability cannot be secured. ⇒ If it is unstable, the manufacturing flow of the factory will be unbalanced and a "bottleneck" will occur. ⇒ If there is a bottleneck (prerequisite), the bottleneck determines the supply capacity of the system. ⇒The environment is becoming more complicated due to the progress of high-mix low-volume manufacturing.

  4. Define what is the method that does not change even in today's environment ⇒ Build into the organization a mechanism that responds to complexity and continues to improve

  5. Define conditions and procedures for what must be changed in order to adapt to change. ⇒ If environmental factors change, it is not possible to build a balanced line, and if it is unbalanced, the key to achieving high productivity and short lead times is the “bottleneck”. Therefore, we will thoroughly utilize bottlenecks, maximize the amount, actively utilize the protection capability of non-necked processes for zero work, and achieve the shortest lead time. ⇒ In order to deal with complexity, it is necessary to have a concrete methodology to recognize and improve physical constraints and invisible constraints at the same time.

TOC has spread all over the world by making the novel The Goal a bestseller.


The effect was particularly remarkable in equipment-intensive industries such as semiconductors and metal processing, where it was difficult to apply TPS. In his dissertation, he cites our customer Hitachi Tool (currently Mordino Co., Ltd.) as an example, introduces the dramatic profit improvement obtained by improving the flow, and introduces the dramatic profit improvement obtained by improving the flow, Japan, which is the fabric of TPS. Even in companies, it is difficult to introduce TPS depending on the environment, and he insisted that TOC is superior to TPS because it can be more effective.


* Please refer to my blog (Memories of Dr. Eli Goldratt) for interesting movements around the case of Hitachi Tools.





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