Posts

The Conflict in the Pyramid

April 13, 2020
what-to-change

An individual with certain skills and resources creates a small business. Applying his knowledge, he elaborates a process that transforms market-acquired raw materials into products he intends to sell. In the beginning, he is the do-everything. Buy, produce, sell, invoice, pay and receive. Market acceptance is good and sales grow rapidly, driven by word of mouth from satisfied customers. The diagram below represents this stage of business, where the investor is very close to everything and everyone. ...

The Process

April 15, 2020
to-what-to-change

According to Deming’s process definition created in the ’50s: The Process would be divided into stages; the work would enter a certain stage, change state and continue, having as client the next stage. The final step would be for the user, buyer of the product or service, the main link of the production line. At each stage there would be production, that is, something would happen in the assets that enter the stage, causing its exit in a different state. ...

The Financial Indicators

April 15, 2020
to-what-to-change

Inspired on Goldratt’s indicators for the Theory of Constraints, the Financial Indicators are listed below. The simplicity of the equations is vital to their general acceptance and understanding. This is the basic financial information that companies of any type and size should maintain. Financial Indicators Initials Indicator Description RI Return on Investment Equals Net Profit divided by Investment. I Investment It is all the money the system invests by buying Inventory that the system intends to sell. ...

TPM: Total Productive Maintenance

April 16, 2020
to-what-to-change

TPM consists of a systematic program for enterprise development that addresses maintenance by optimizing equipment effectiveness. TPM consolidates failures and waste into a creative approach, using time as a common link. Working Time Working Time is defined as the total journey time that company works. From then on, we will be discounting the time spent on failures and waste, creating indexes that will selectively signal machine and equipment performance problems, operation failures and product defects. ...

The Cyclo

April 18, 2020
how-to-change

Gain is the most important measure In order to discuss the Cyclo, it is necessary to assume that Gain is the most important measure when it comes to increase the Net Profit. Check the Net Profit and Gain formulas below: \( \begin{aligned} NP&=(PS-RM)-(WF+OH) \\ G&=PS-RM \\ \end{aligned} \) NP: Net Profit; G: Gain; PS: Product Sales; RM: Raw Material; WF: Workforce; OH: Overhead Definitely, it is possible to improve NP just by decreasing any of the expenses. ...

Company & Planet

April 17, 2020
how-to-change

The Company and the Planet The following relationships rule the interaction between the Company and the Planet. COMPANY The Company has Investors that own Shares that decide how to manage a Facility that implements a bAmpli Circuit with at least one bAmpli that handles at least one Cyclo composed by one Stage or more. PLANET The Planet is a living System populated by Products made by a Process expressed by a bAmpli Circuit with at least one bAmpli that handles at least one Cyclo composed by one Stage or more. ...

P&Q Factory

April 20, 2020
to-what-to-change

This is the Process used as a sample when a process is needed in this project. The P&Q Factory gives no room for apology and demonstrates how the “Theory of Constraints” (ToC) can help managers with their decision-making logic. The fictional factory portfolio has products P & Q. P&Q Factory Using TPM to describe the P&Q Factory, there are very few reasons to blame poor corporate results: ati = 1 Equipment runs nonstop for the working time, available time index is 1. ...

The Stage

April 28, 2020
how-to-change

In order to analyze thoroughly the Stage of the Process, we should consider the production flows that results in the final Product for the consumer. The Production Flow Although the following example shows a manufacturing process, these flows can also be applied to generic environments where resources are used for tasks that require skills, to achieve a goal. In order to extract a process sample, the P&Q Factory, shown below, will be used as an example. ...

Times of Gain

May 17, 2020
how-to-change

Stage Model The Stage revised model shows below the Facility resources divided into two categories: FacilityInfra: includes infrastructure items, like Shop Floor Area, Energy, etc. FacilityOp: includes operational items with Skills, like Tools and People. mermaid.initialize({ flowchart: { useMaxWidth:true } }); classDiagram Planet -- "1..n" Product : populated_by Product -- "1..n" Process : made_by Process -- "1..n" Stage : composed_of Stage -- "1..n" Resource : uses Stage -- Stage : previous Stage -- Stage : next Worker -- " ...

Frequency distributions

July 1, 2022
how-to-change

The amount of time each Stage requires at run time should be treated as a frequency distribution to be designed by the Process, ultimately by the Cyclo. When implemented by the Facility, the Times of Gain from the running Cyclo should be captured and analyzed, in order to check how close they are from the expected timing. The timing analysis should detect variations due to existing common and special causes in the Process, according to SPC (Statistical Process Control) and TPM (Total Productive Maintenance) directives. ...