TOC – More output with less effort on the inputs.pdf

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1、TOC–MoreoutputwithlesseffortontheinputsLetustakeastepintothehypotheticalworldofasupplychainmanagerashegrappleswithachallengethrownathimfromahigherauthoritytoimprovetheareaofbusinessunderhiscontrol.Hisunderlyinglogicstartswiththepremisethatidlenessiswaste,andthatthebesthecandofo

2、rtheorganisationistoensurethatalltheresourceshehasunderhiscontrolarefullyutilised.Thestartingpointofanygoodmanageristounderstandtheprocessesthataddvaluetothebusiness.Inourhypotheticalcase,let’ssayheisinchargeofalargewarehousingoperationthathasfourbasicfunctions–replenish,pick,p

3、ackandship.Ourmanagernoticesthathehasmuchmorecapacityintheworkforcethatdoesthereplenishingthanhehasanywhereelse.Pickinghasmorecapacitythanpacking,whichappearsasarealbottleneckmostofthetimeandthecapacityforshippingismoreorlessbalancedwiththatofpicking.Immediatelyouryoungmanagers

4、eescostsavingpotential–whatisrequiredhedecidesistobalancetheline.Whathedeterminesisthathewillmovevariouspeoplearoundandmakesomechangestotheprocessesanddepartmentalresponsibilitiessuchthathehasbalancedcapacityequaltothatoftheaveragedemandonthebottleneck(packing)andhewillimmediat

5、elygetsomecostsavingfromemployingfewerpeopleandtheutilisationratewillincrease.Sadlyhecannotworkaccordingtohisexactcalculations,asthatwouldrequirehimhavingonly2/3ofapersondoingaparticularpieceofwork,butallthesameheisreasonablysatisfiedwithhisefforts.Heisparticularlypleasedthathe

6、doesn’thavetowearthecostofretrenchment,asthecompanyhasapolicythatmoves“excess”peopletootherdepartmentsthatmayhaveaneedofthem.Hisdepartmentisbeginningtolookgoodonpapereventhoughtheneteffectonthecashflowofthecompanyisnil.Ourintrepidmanagertrainsallthestaffintheirnewpositionsandco

7、mesinonMondaymorningreadytoprovehisworthtoallwhomightbeinterested.ByFridayevening,whenheeventuallygoeshomeatclosetomidnight,hecannotbelievethefirefightshehasbeendealingwithallweek.Expediteseverywhere,hisairfreightbillblownoutcompletely,overtimeatarecordhigh,disgruntledcustomers

8、screamingandshoutingandanexhaustedandconfusedworkforce