The Goal: A Process of Ongoing Improvement, Third Revised Edition

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by Eliyahu M. Goldratt


  have been getting to final assembly faster. It's as if we've created

  an "express lane" through the plant for bottleneck parts.

  After putting Q.C. in front of the bottlenecks, we discovered

  that about five percent of the parts going into the NCX-10 and

  about seven percent going into heat-treat did not conform to

  quality requirements. If those percentages hold true in the fu-

  ture, we'll effectively have gained that time for additional

  throughput.

  The new policy of having people cover the bottlenecks on

  lunch breaks has also gone into effect. We're not sure how much

  we've gained from that, because we didn't know how much we

  were losing before. At least we're doing the right thing now. But I

  have heard reports that from time to time the NCX-10 is idle—

  and it happens when there is nobody on break. Donovan is sup-

  posed to be looking into the causes.

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  The combination of these has allowed us to ship our most

  critical orders and to ship a few more of them than normal. But I

  know we're not going fast enough. A few weeks ago we were

  limping along; now we're walking, but we ought to be jogging.

  Glancing back toward the monitor, I see the eyes are upon

  me.

  "Listen ... I know we've taken a step in the right direc-

  tion," I explain. "But we have to accelerate the progress. It's

  good that we got twelve shipments out last week. But we're still

  having some customer orders become past due. It's not as many,

  I'll grant you, but we still have to do better. We really shouldn't

  have any late orders."

  Everyone walks away from the computer and joins me around

  the table. Bob Donovan starts telling me how they're planning

  some refinements on what we've already done.

  I say, "Bob, those are fine, but they're minor. How are we

  coming on the other suggestions Jonah made?"

  Bob glances away.

  "Well . . . we're looking into them," he says.

  I say, "I want recommendations on offloading the bottle-

  necks ready for our Wednesday staff meeting."

  Bob nods, but says nothing.

  "You'll have them for us?" I ask.

  "Whatever it takes," he says.

  That afternoon in my office, I have a meeting with Elroy

  Langston, our Q.C. manager, and Barbara Penn, who handles

  employee communications. Barbara writes the newsletters, which

  are now explaining the background and reasons for the changes

  taking place in the plant. Last week, we distributed the first issue.

  I put her together with Langston to have her work on a new

  project.

  After parts exit the bottlenecks, they often tend to look al-

  most identical to the parts going into the bottlenecks. Only a close examination by a trained eye will detect the difference in some

  cases. The problem is how to make it easy for the employee to tell

  the two apart . . . and to make it possible for the employee to

  treat the post-bottleneck parts so more of them make it to assem-

  bly and are shipped as quality products. Langston and Penn are

  in my office to talk about what they've come up with.

  "We already have the red tags," says Penn. "So that tells us E.M. Goldratt

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  188

  the part is on a bottleneck routing. What we need is a simple way

  to show people the parts they need to treat with special attention

  —the ones they need to treat like gold."

  "That's a suitable comparison," I tell her.

  She says, "So what if we simply mark the tags with pieces of

  yellow tape after the parts are finished by the bottlenecks. The

  tape would tell people on sight that these are the parts you treat

  like gold. In conjunction with this, I'll do an internal promotion

  to spread the word about what the tape means. For media, we

  might use some sort of bulletin board poster, an announcement

  that the foremen would read to the hourly people, maybe a ban-

  ner which would hang in the plant—those kinds of things."

  "As long as the tape can be added without slowing down the

  bottlenecks, that sounds fine," I say.

  "I'm sure we can find a way to do it so it doesn't interfere,"

  says Langston.

  "Good," I say. "One other concern of mine is that I don't

  want this to be just a lot of promotion."

  "That's perfectly understood," says Langston with a smile.

  "Right now, we're systematically identifying the causes of quality

  problems on the bottlenecks and in subsequent processing. Once

  we know where to aim, we'll be having specific procedures devel-

  oped for bottleneck-routed parts and processes. And once they're

  established, we'll set up training sessions so people can learn

  those procedures. But that's obviously going to take some time.

  For the short term, we're specifying that the existing procedures

  be double-checked for accuracy on the bottleneck routes."

  We talk that over for a few minutes, but basically all of it

  seems sound to me. I tell them to proceed full speed and to keep

  me informed of what's happening.

  "Nice job," I say to both of them as they stand up to leave.

  "By the way, Roy, I thought Bob Donovan was going to sit in on

  this meeting."

  "That man is hard to catch these days," says Langston. "But I'll brief him on what we talked about."

  Just then, the phone rings. Reaching with one hand to an-

  swer it, I wave to Langston and Penn with the other as they walk

  out the door.

  "Hi, this is Donovan."

  "It's too late to call in sick," I tell him. "Don't you know you just missed a meeting?"

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  That doesn't faze him.

  "Al, have I got something to show you!" says Bob. "Got time to take a little walk?"

  "Yeah, I guess so. What's this all about?"

  "Well . . . I'll tell you when you get here," says Bob. "Meet me on the receiving dock."

  I walk down to the dock, where I see Bob; he's standing

  there waving to me as if I might miss him. Which would be im-

  possible. There is a flat-bed truck backed up to the dock, and in

  the middle of the bed is a large object on a skid. The object is

  covered by a gray canvas tarp which has ropes tying it down. A

  couple of guys are working with an overhead crane to move the

  thing off of the truck. They're raising it into the air as I walk up

  to Bob. He cups his hands around his mouth.

  "Easy there," Bob calls as he watches the big gray thing sway

  back and forth.

  Slowly, the crane maneuvers the cargo back from the truck

  and lowers it safely to the concrete floor. The workers release the

  hoist chains. Bob walks over and has them untie the ropes hold-

  ing down the canvas.

  "We'll have it off in a minute," Bob assures me.

  I stand there patiently, but Bob can't refrain from helping.

  When all the ropes are untied, Donovan takes h
old of the tarp

  and, with a flair of gusto, flings it off of what it's concealing.

  "Ta-da!" he says as he stands back and gestures to what has

  to be one of the oldest pieces of equipment I've ever seen.

  "What the hell is it?" I ask.

  "It's a Zmegma," he says.

  He takes a rag and wipes off some of the grime.

  "They don't build 'em like this anymore," he says.

  "I'm very glad to hear that," I say.

  "Al," he says, "the Zmegma is just the machine we need!"

  "That looks like it might have been state-of-the-art for 1942.

  How's it going to help us?"

  "Well ... I admit it ain't no match for the NCX-10. But if

  you take this baby right here," he says patting the Zmegma, "and one of those Screwmeisters over there," he says pointing across

  the way, "and that other machine off in the corner, together they

  can do all the things the NCX-10 can do."

  I glance around at the different machines. All of them are

  old and idle. I step closer to the Zmegma to look it over.

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  "So this must be one of the machines you told Jonah we sold

  to make way for the inventory holding pen," I say.

  "You got it," he says.

  "It's practically an antique. All of them are," I say, referring to the other machines. "Are you sure they can give us acceptable

  quality?"

  "It isn't automated equipment, so with human error we

  might have a few more mistakes," says Bob. "But if you want capacity, this is a quick way to get it."

  I smile. "It's looking better and better. Where did you find

  this thing?"

  "I called a buddy of mine this morning up at our South End

  plant," he says. "He told me he still had a couple of these sitting around and he'd have no problem parting with one of them. So I

  grabbed a guy from maintenance and we took a ride up to have a

  look."

  I ask him, "What did it cost us?"

  "The rental fee on the truck to haul it down here," says Bob.

  "The guy at South End told us just to go ahead and take it. He'll

  write it off as scrap. With all the paperwork he'd have to do, it

  was too much trouble to sell it to us."

  "Does it still work?"

  "It did before we left," says Bob. "Let's find out."

  The maintenance man connects the power cable to an outlet

  on a nearby steel column. Bob reaches for the power switch and

  hits the ON button. For a second, nothing happens. Then we

  hear the slow, gathering whirr from somewhere in the guts of the

  old machine. Poofs of dust blow out of the antique fan housing.

  Bob turns to me with a dumb grin on his big face.

  "Guess we're in business," he says.

  E.M. Goldratt

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  23

  Rain is beating at the windows of my office. Outside, the

  world is gray and blurred. It's the middle of a middle-of-the-week

  morning. In front of me are some so-called "Productivity Bulle-

  tins" put out by Hilton Smyth which I've come across in my in-

  basket. I haven't been able to make myself read past the first

  paragraph of the one on top. Instead, I'm gazing at the rain and

  pondering the situation with my wife.

  Julie and I went out on our "date" that Saturday night, and

  we actually had a good time. It was nothing exotic. We went to a

  movie, we got a bite to eat afterwards, and for the heck of it we

  took a drive through the park on the way home. Very tame. But it

  was exactly what we needed. It was good just to relax with her. I admit that at first I felt kind of like we were back in high school or

  something. But, after a while, I decided that wasn't such a bad

  feeling. I brought her back to her parents at two in the morning,

  and we made out in the driveway until her old man turned on

  the porch light.

  Since that night, we've continued to see each other. A couple

  of times last week, I made the drive up to see her. Once, we met

  halfway at a restaurant. I've been dragging myself to work in the

  morning, but with no complaints. We've had fun together.

  By some unspoken agreement, neither of us talk about di-

  vorce or marriage. The subject has only come up once, which

  happened when we talked about the kids and agreed they should

  stay with Julie and her folks as soon as school ends. I tried then to

  push us into some answers, but the old argument syndrome be-

  gan to brew quickly, and I backed off to preserve the peace.

  It's a strange state of limbo we're in. It almost feels the way it

  did before we got married and "settled down." Only now, we're

  both quite familiar to each other. And there is this storm which

  has gone south for a while, but which is sure to swing back some-

  day.

  A soft tap at the door interrupts this meditation. I see Fran's

  face peeking around the edge of the door.

  "Ted Spencer is outside," she says. "He says he needs to talk to you about something."

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  "What about?"

  Fran steps into the office and closes the door behind her. She

  quickly comes over to my desk and whispers to me.

  "I don't know, but I heard on the grapevine that he had an

  argument with Ralph Nakamura about an hour ago," she says.

  "Oh," I say. "Okay, thanks for the warning. Send him in."

  A moment later Ted Spencer comes in. He looks mad. I ask

  him what's happening down in heat-treat.

  He says, "Al, you've got to get that computer guy off my

  back."

  "You mean Ralph? What have you got against him?"

  "He's trying to turn me into some kind of clerk or some-

  thing," says Ted. "He's been coming around and asking all kinds

  of dumb questions. Now he wants me to keep some kind of spe-

  cial records on what happens in heat-treat."

  "What kind of records?" I ask.

  "I don't know ... he wants me to keep a detailed log of

  everything that goes in and out of the furnaces . . . the times we

  put 'em in, the times we take 'em out, how much time between

  heats, all that stuff," says Ted. "And I've got too much to do to be bothered with all that. In addition to heat-treat, I've got three

  other work centers I'm responsible for."

  "Why does he want this time log?" I ask.

  "How should I know? I mean, we've already got enough

  paperwork to satisfy anybody, as far as I'm concerned," says Ted.

  "I think Ralph just wants to play games with numbers. If he's got

  the time for it, then fine, let him do it in his own department. I've

  got the productivity of my department to worry about."

  Wanting to end this, I nod to him. "Okay, I hear you. Let me

  look into it."

  "Will you keep him out of my area?" asks Ted.

  "I'll let you know, Ted."

  After he's gone, I have Fran track down Ralph Nakamura for

  me. What's puzzling me is that Ralph is not what you'd call an

  abrasive person, and yet he sure seems to have made Ted very
/>
  upset.

  "You wanted to see me?" asks Ralph from the door.

  "Yeah, come on in and sit down," I say to him.

  He seats himself in front of my desk.

  E.M. Goldratt

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  Captured by Plamen T.

  193

  "So tell me what you did to light Ted Spencer's fuse," I say to

  him.

  Ralph rolls his eyes and says, "All I wanted from him was to

  keep an accurate record of the actual times for each heat of parts

  in the furnace. I thought it was a simple enough request."

  "What prompted you to ask him?"

  "I had a couple of reasons," says Ralph. "One of them is that the data we have on heat-treat seems to be very inaccurate. And if

  what you say is true, that this operation is so vital to the plant,

  then it seems to me we ought to have valid statistics on it."

  "What makes you think our data is so inaccurate?" I ask.

  "Because after I saw the total on last week's shipments I was

  kind of bothered by something. A few days ago on my own, I did

  some projections of how many shipments we would actually be

  able to make last week based on the output of parts from the

  bottlenecks. According to those projections, we should have been

  able to do about eighteen to twenty shipments instead of twelve.

  The projections were so far off that I figured at first I must have

  made a big mistake. So I took a closer look, double-checked my

  math and couldn't find anything wrong. Then I saw that the

  estimates for the NCX-10 were within the ballpark. But for heat-

  treat, there was a big difference."

  "And that's what made you think that the data base must be

  in error," I say.

  "Right," he says. "So I went down to talk to Spencer. And,

  ah. . . ."

  "And what?"

  "Well, I noticed some funny things were happening," he

  says. "He was kind of tight-lipped when I started asking him

  questions. Finally, I just happened to ask him when the parts that

  were being treated in the furnace at the moment were going to be

  finished. I thought I'd get a time on an actual heat by myself, just

  to see if we were close to the standard. He said the parts could

  come out at around 3 P.M. So I went away, and came back at

  three. But nobody was around. I waited for about ten minutes,

  then went to look for Ted. When I found him, he said he had the

  furnace helpers working somewhere else and they'd get around

 

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