Discovering extra capacity through your constraint
Managing complexity can create anxiety because complexity suggests a lack of control. Managing an organization around a constraint and managing variation allows control over the entire organization through radically heightened focus.
Simply by introducing Drum, Buffer, Rope from the Theory of Constraints, identifying a physical constraint and subordinating to that constraint, an organization will gain at least 30% capacity without added investments. This alone is a huge result.
The traditional, non-systemic approach is to demand maximum “efficiency” from all parts of an organization and production process, whereas our systemic approach, combining Deming with the Theory of Constraints, only requires maximum efficiency from the constraint and therefore:
- avoids accumulation of work in progress between the various production phases
- shortens lead time
- frees up capital
- synchronizes production with the market
- makes evident where redundancies in activities exist and where processes can be improved
- increases the flow of throughput
- enables systemic and systematic approach to Sales and Marketing to increase sales and market penetration
- allows more effective organizational design
- improves Quality
- increases Involvement through well-thought-through processes and relationships
- increases Flow, including generation of cash