Theory of Constraints

In the last post, I provided a link to an article I wrote some time ago on how to utilize TOC to focus Lean / Six Sigma improvement efforts.   If you haven’t already, I recommend reading that article as it provides a good overview of Lean, Six Sigma, TOC and how they can best work together to maximize value.

The problem of these types of programs not being successful or not achieving their maximum potential value continues today.   In this article, I discuss principles to ensure that your program is successful.  I recognize that some of these principles, such as “Top management must be committed and actively involved” are much easier said than done.   In fact, my most recent thinking is that the issue of top management commitment is at the top of the list as to why these initiatives aren’t nearly as successful as they could be.    In my view, this area needs to be focused upon in more detail in terms of what CI practitioners can practically do to get this commitment and involvement.

In order to address this problem, we need to understand what is the root cause.   From recent discussions with Richard Schonberger, a leading lean advocate, these types of initiatives may not be viewed as “strategic” enough to warrant continued senior management attention and commitment.   From what I’ve seen, there appears to be a lack of understanding of how lean and Six Sigma can be utilized to drive strategic benefits.   One theme that I’ve consistently seen is that of these programs being short term approaches to drive cost reduction.  This is a perception that needs to change if we want to be successful.

I’m currently writing an article that covers this topic in more detail, but I’m interested in your comments.

In the previous blog post, I wrote about the challenge that arises once companies have decided they need to undertake improvement efforts, they frequently take on more improvement projects than they can handle.  I have seen this over and over again in my career, especially with companies that are starting Six Sigma efforts.    One of the success measures used is the number of certified “belted” practitioners.  In order to get certified, there is usually a requirement to undertake training and achieve results with a project.   As a result, the organization can take on projects that may not drive significant value, but drain the organization’s valuable capacity.

One approach to focus improvement efforts where they drive the most value is the Theory of Constraints.  I was lucky enough to be exposed to TOC when I started my career.   I wrote an article in 2006 that described what is TOC and how it can be used to enhance lean and Six Sigma efforts.    Take a look, and leave any comments you have below.