book

Factory Physics for Managers: How Leaders Improve Performance in a Post-Lean Six Sigma World

by Edward S. Pound, Jeffrey H. Bell, Mark L. Spearman

April 2014

Intermediate to advanced

304 pages

10h 1m

English

McGraw-Hill

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The Book in BriefWhy Is This Book Needed?
Of Theories and BuzzwordsToyota and ScienceHow Toyota Did ItBatch and Queue ProductionA Balanced ApproachThe Track Record: Lean and Six SigmaA Confused LandscapeBoeing’s Moving Assembly LineLooking Ahead
Leading Performance Improvement More ProductivelyTradeoff IllustrationsLeadership and TradeoffsThe Factory Physics Approach
Knowledge and ScienceScience, Math, Software, and IntuitionPractical TheoryThe Value Stream: Demand, Stocks, and ProductionBuffersTypes of BuffersConceptual Illustrations: Something or Someone Is Always WaitingA Manager’s World: Environment, Tactics, Controls, and MeasuresPutting Practical Science to PracticeDefinitionsFactory Physics Science: As Simple as Possible but No SimplerAdvancing the Practical Science of ManagementThe VUT EquationCycle Time versus Utilization GraphProduction and StocksLittle’s LawProduction-Flow GraphVariance of Replenishment-Time Demand EquationTradeoff Plot: Inventory versus Fill Rate GraphEfficient FrontiersInsights from the Tradeoff PlotVisual Management of Stock-Point PerformanceStocks and Flows, the Lot-Size Graph
Defining TermsModeling StocksA Perfect WorldReplenishment TimesDemandForecast Error and Lead TimeInventory Performance MeasuresComputing Inventory PoliciesInventory in an Assembly SystemModeling FlowsLittle’s LawCapacity AnalysisOverall Equipment EffectivenessBest-Case PerformanceEffect of VariabilityMeasures of VariabilityQueuing EffectsTotal Cycle TimeRaw Process TimeMove TimeShift-Differential TimeBatch TimePull SystemsCombining Stocks and FlowsCash-Flow OptimizationExamples of Cash-Flow OptimizationConclusions

The Value-Added FantasyFinancial Statements and the Science of OperationsFinancial Performance Driven by the Science of OperationsContribution Margin at the BottleneckWhen Lean Manufacturing Adds CostInventory OptimizationManaging the Portfolio of BuffersMarketing and Operations Strategies Drive Financial Results
Operations StrategyStrategyTacticsControlsMeasuresExecutionInformation Technology Control and Control LimitsFactory Physics Sales and Operations PlanningS&OP Event Sequence and ParticipantsS&OP Meeting PracticesS&OP+S&OP+ Process
Demand Tactics and ControlsDescribing and Forecasting DemandLumpy DemandInventory TacticsInventory Strategy ConsiderationsCapacity ConsiderationsCurrent Performance versus Predicted PerformanceStrategic OptionsTactics for Inventory ManagementInventory ControlCapacity TacticsUtilizationWIP Control and CONWIPVirtual Queues and Due-Date QuotingRework and ScrapResponse-Time StratagemsPredictive Control Using MRP/ERP SystemsCommon PracticesMRP for Inventory ControlMRP for Production ControlDynamic Risk-Based SchedulingDynamic Risk-Based Scheduling in Assemble-to-Order EnvironmentsMeasures Alignment and Insight
An Approach to Sustainable LeadershipA High-Level Plan So That Strategies Can Be Shared and UnderstoodVision and MissionCritical StrategiesMonthly or Quarterly Plans to Establish Prioritized InitiativesInventory OptimizationUtilization TargetsWeekly Scheduling Meetings to Plan the WorkWIP CapsDue-Date QuotingWeekly Operations Meetings to Check ProgressDaily Mechanisms for FeedbackPersonal Plans So That Individuals Understand Their Roles
Learning to See—FartherBeyond ABC—Optimal Inventory PoliciesReducing Cycle Times in a Traditional Pharmaceutical PlantRestoring Customer Service in a Fabrication and Assembly PlantIncreasing Throughput in a Biopharmaceutical FacilityDynamic Risk-Based Scheduling in the Textile Industry
Quick WinsOperations Strategy Alignment with Business StrategyAbsolute BenchmarkingHigh-Level Assessment of UtilizationBottleneck AnalysisPotential for WIP Cap DeploymentHigh-Level Analysis of Lead TimesERP/MRP MechanicsMore Complex ImplementationsA Large Company ImplementationAlternative HistoriesThe Future

Content preview from Factory Physics for Managers: How Leaders Improve Performance in a Post-Lean Six Sigma World

CHAPTER 2 The Nature of Business—A Secret Hidden in Plain Sight

The best way of keeping a secret is to pretend there isn’t one.

—Margaret Atwood

Sustained operations leadership success requires understanding the natural behavior of business. This natural behavior is a secret hidden in plain sight. We will talk a fair amount about natural behavior of operations and businesses in general because we see so very often that executives do not clearly understand the natural behavior of the operations they are trying to manage. If they did, they would not use brute force approaches such as:

Install a directly coupled moving assembly line for airplane ...