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Beyond the Giants (18)

Updated: Oct 12, 2022

Conditions for survival in the manufacturing industry in VUCA era


Satoru Murakami CEO Goal-System consultants Inc.,




What is the difference between TPS and TOC?


Last time, I relived the achievement of the goal of "improving the flow" with the thinking procedure that Dr. Goldratt challenged.

This time, I would like to summarize the differences between TOC and TPS.


By actively utilizing the "time buffer" that was aggregated before the bottleneck and the "protective capacity" of the non-bottleneck process, TOC makes it difficult for "Kanban" to function and realizes stable flow even in an unstable environment. Protective capacity is the capacity to protect processes other than bottlenecks and neck processes. Simply put, it is the capacity to catch up with the neck process even if something goes wrong.  Larger buffers require less protection, but lead times are longer, and smaller buffers result in loss of throughput without more protection.


In TPS, the production capacity of the process is not linked to the throughput, but it is wasted and improved as much as possible to eliminate it. On the other hand, TOC responded to "variation" by making good use of the difference in environmental change conditions. After all, if the balance of line capacity cannot be achieved in an unstable environment, the instability should be actively utilized, and the capacity difference between bottleneck and non-bottleneck should be thoroughly utilized in the form of production capacity and protection capacity. I made it.


TOC does not manage all processes in sequence like the TPS post-process take-back method, but has succeeded in significantly improving the ability to respond to fluctuations by concentrating management points on the three points of input, bottleneck, and delivery date. Even if the number of varieties is large, TPS uses a mechanism called Kanban, which is a one-to-one individual correspondence to a specific cultivar, as a tool for synchronous production, but TOC is not limited to varieties, and is a general-purpose concept of "time" (time). It was replaced with a buffer), making it possible to produce a large number of varieties.


For example, when 30 minutes of work is completed in the bottleneck process, 30 minutes of new work (task) is input. In other words, it can be easily ported to an environment with higher uncertainty than the automobile industry by seeing the essence that the number of in-processes in the process can be controlled by the number of issued kanbans and making it more general-purpose. It made it possible to implement faster.


So far, we have considered variability. Did you know that the history of operations management that continues with Ford, Toyota, and TOC to date has been a battle between the changing environment and the volatility that accompanies it?


From the next time, let's think about how to confront today's VUCA environment.





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