Table of Contents for Building Lean Supply Chains With the Theory of Constraints


Foreword xv
Preface xvii
Acknowledgments xxi
The Sixteen Lean Supply Chain Principles xxiii
chapter 1 The Lean Supply Chain Roadmap
1(30)
Challenges to the Lean Supply Chain
3(3)
The Internet and Commoditization
4(1)
Manufacturing Practices
5(1)
The Bullwhip Effect
6(13)
The Beer Game
9(4)
The Impact of Forecasting and POS Data
13(2)
The Impact of Lead Times
15(1)
Lessons from the Beer Game
16(3)
Structuring the Lean Supply Chain
19(2)
The Lean Supply Chain Roadmap
21(5)
Step 1 Develop Systems Thinking Skills
21(1)
Step 2 Focus on Throughput
22(1)
Step 3 Design Products and Services that Deliver Customer Needs
23(1)
Step 4 Develop a Competitive Operations Strategy
24(1)
Step 5 Form Strategic Alliances with Supply Chain Partners
24(1)
Step 6 Streamline the Value Stream
25(1)
Step 7 Create Flow Along the Supply Chain
25(1)
Implementing the Lean Supply Chain Roadmap
26(1)
Conclusions
27(1)
References
28(3)
chapter 2 Envisioning the Lean Supply Chain: Systems Thinking
31(32)
The Traditional Approach to Managing Systems
31(1)
Local Optimization
32(1)
Using Systems Thinking to Meet the Challenge
33(1)
Applying Lean Supply Chain Principle 1
34(4)
Management Philosophies to Enhance Lean Supply Chain Performance
38(6)
The Theory of Constraints
38(3)
Theory of Constraints and Un-common Sense
41(1)
Lean
42(2)
Synergies Between TOC and Lean
44(3)
The Business Ecosystem
47(13)
Personal Computer Ecosystems
51(9)
Conclusions
60(1)
References
61(2)
chapter 3 Adopting a Throughput World Perspective
63(40)
TOC and the Thinking Process
64(2)
An Un-common Sense Minute
65(1)
Focusing on the Constraint
66(3)
Physical Constraints
67(1)
Market Constraints
68(1)
Policy Constraints
68(1)
Estimating Product Costs with Cost Accounting Systems
69(13)
The Standard Cost Accounting System
70(3)
CSN, Inc
73(4)
Activity-Based Costing (ABC)
77(2)
Applying ABC to CSN, Inc
79(3)
Throughput Accounting
82(10)
Throughput Accounting Measures
82(1)
Relating Throughput Accounting to Traditional Accounting
83(2)
Kings of Neon
85(2)
Relating Throughput Accounting Measures to Financial Measures
87(1)
Cost World Versus Throughput World: Everclear, Inc
88(4)
The Five-Step Focusing Process of TOC
92(9)
Step 1 Identify the System's Constraint(s)
92(1)
Step 2 Decide How to Exploit the System's Constraint(s)
92(1)
Step 3 Subordinate Everything Else to that Decision
93(1)
Step 4 Elevate the System's Constraints
94(1)
Step 5 If a Constraint Was Broken in a Previous Step, Go Back to Step 1
94(1)
An Example of the Five-Step Focusing Process
95(3)
Interpreting T
98(1)
An Un-common Sense Minute
99(1)
Applying Throughput Accounting to CSN, Inc
99(2)
Conclusions
101(1)
References
101(2)
chapter 4 Designing Products and Processes to Fulfill Customer Needs
103(40)
The Viable Vision
103(3)
Defining the Market Segments
106(4)
Market Segmentation at Hindustan Unilever Limited
108(2)
Order Qualifiers and Order Winners
110(1)
Benchmarking Best Practices
111(3)
Managing Customer Demand Volatility
114(10)
Quick and Reliable Response
115(4)
An Un-common Sense Minute
119(1)
Risk Pooling
119(1)
The RAP Principle
120(4)
Customer-Time-Based Demand Profile
124(3)
The TOC Distribution and Replenishment Solution
127(12)
The Plant Warehouse
128(1)
Setting Target Inventory Levels at the Points of Consumption
129(2)
Safety Buffers to Accommodate Variation
131(1)
Looking for Opportunities to Reduce Safety Buffers
132(1)
The Make-to-Availability Replenishment Mechanism
132(1)
Monitoring Safety Buffers Based on Buffer Penetration
133(1)
Applying the TOC Distribution Solution at the POC
134(4)
Measures for Sustaining the Solution
138(1)
Conclusions
139(2)
References
141(2)
chapter 5 Building a Competitive Operations Strategy
143(40)
Gaining a Competitive Advantage
144(1)
Building a Structural Position
145(1)
Competing Through Process Execution
146(5)
Operational Effectiveness and the Productivity Frontier
146(3)
Operational Effectiveness and Competitiveness
149(1)
Operational Effectiveness: Necessary but Not Sufficient
149(2)
Building Strategic Flexibility
151(28)
A Model for Enterprise Growth
153(2)
Maintaining a Process Orientation
155(5)
Bringing New Products to Market Faster
160(5)
Coevolving Marketing and Operations Strategies
165(3)
Communicating Financial Benefits to Management
168(5)
Enabling the Operations Strategy
173(6)
Conclusions
179(1)
References
180(3)
chapter 6 Partnering in the Lean Supply Chain
183(40)
Partnering with Suppliers
185(8)
Arm's-Length Relationships
185(2)
Strategic Partnerships
187(4)
Vendor-Managed Inventory
191(2)
Partnering with Logistics Providers
193(6)
3PLs and 4PLs
194(2)
Postponement in Logistics
196(1)
Cross-Docking
196(3)
Supply Chain Metrics
199(3)
Creating Win-Win Partnerships: The Evaporating Cloud
202(19)
The Office Worker's Dilemma
204(2)
The Injection for the Office Worker's Dilemma: The Dabbawalas
206(14)
Takeaways from the Reo Motors Case
220(1)
Conclusions
221(1)
References
222(1)
chapter 7 Streamlining the Value Stream
223(42)
From Craft Production to Mass Production to Lean Production
223(6)
Henry Ford and the Origin of Mass Production
224(1)
The Toyota Production System
225(1)
The U.S. Response
226(1)
Lessons Learned
227(2)
Lean: A Growth Strategy
229(3)
Value-Stream Mapping
232(4)
The Tools and Techniques of Lean
236(24)
5-S
238(2)
Flowcharts
240(3)
Takt Time
243(6)
Average Labor Content and Minimum Operator Requirement
249(1)
Mixed-Model Scheduling and Small-Batch Production
250(2)
One-Piece Flow
252(2)
Cellular Layout
254(1)
Standard Work
255(1)
Pull Replenishment and Kanbans
256(3)
Point-of-Use Materials Storage
259(1)
Total Productive Maintenance
259(1)
Mistake-Proofing and Method Sheets
260(1)
Continuous Improvement and the Pursuit of Perfection
260(2)
Conclusions
262(1)
References
263(2)
chapter 8 Creating Flow Through the Supply Chain
265(42)
Creating Flow: Synergies Between TOC and Lean
266(3)
Comparing TOC and Lean Philosophies
266(2)
Exploiting the Synergy Between TOC and Lean to Create Flow
268(1)
Creating Flow: The Impact of Variability and Dependency
269(11)
The Frontier City Clinic
270(4)
The Impact of Variation on Dependent Events
274(6)
Creating Flow: The Impact of Batch Size
280(2)
Process Batch Versus Transfer Batch
281(1)
Controlling Flow Using Pull
282(8)
A Serial Production System
282(3)
Using a Push System to Address Flow
285(1)
Controlling Flow Using Kanbans
286(2)
Controlling Flow Using Con WIP
288(1)
Controlling Flow by Pulling from the Bottleneck
289(1)
The Drum-Buffer-Rope Model
290(5)
Time Buffers Versus Inventory Buffers
292(1)
Determining Buffer Size
293(2)
The Simplified Drum-Buffer-Rope Model
295(1)
Buffer Management
296(1)
The Dice Game
297(5)
Variations on the Dice Game
300(1)
Simulating the Con WIP System
301(1)
Pull Systems Are More Stable and Predictable Than Push Systems
302(1)
Comparing Pull and Push Systems for Efficiency
303(1)
Conclusions
303(1)
Con WIP Efficiency Law
303(1)
Corollary to the Con WIP Efficiency Law
303(1)
References
304(3)
chapter 9 Managing Projects the Theory of Constraints Way
307(38)
Characteristics of Projects
308(3)
The Impact of Variation on Project Completion Times
310(1)
Project Management with PERT/CPM
311(5)
Determining the Critical Path
312(4)
Causes of Avoidable Project Delays
316(4)
Multitasking
317(1)
Parkinson's Law
318(1)
The Student Syndrome
318(1)
Sandbagging
319(1)
Critical Chain Project Management
320(9)
Planning the CCPM Schedule in a Single-Project Environment
321(3)
Planning the CCPM Schedule in a Multiproject Environment
324(1)
Executing the CCPM Schedule Using Buffer Management
324(3)
An Un-common Sense Minute
327(1)
Sustaining the Change
328(1)
Visual Project Management
329(13)
A Firm, Aggressive Plan
329(1)
Frequent Reporting of Completed Tasks
330(4)
The Expert Resource Bench
334(2)
Implementing VPM
336(2)
Special Cases in VPM
338(4)
Conclusions
342(1)
References
343(2)
Index 345