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N&S Presentation - Necessary AND Sufficient All...

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1 Necessary AND Sufficient All materials © Eliyahu M. Goldratt, 2000-2005 Visit us at: www.toc-goldratt.com
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2 1. Technology can bring benefits if and only if it diminishes a limitation. 2. Long before the availability of a technology we developed modes of behavior, policies, measurements and rules to help us accommodate the limitation. What benefits will any technology bring if we neglect to change the “rules”?
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3 The search for the new rules: 1. What is the main power of the technology? 2. What limitation does it diminish? 3. What rules helped us to accommodate the limitation? 4. What rules should we use now?
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4 The search for the new rules; Let’s try to answer these questions for MRP: 1. What is the main power of the technology? 1. What is the main power of MRP?
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5 Figure net requirement Order 1 Q=720 Order 2 Q=215 Order 3 Q=1175 Product A FG=314 Product B FG=689 S=268 S=98 S=0 S=66 S=0 S=1709 S=317 SC=7% U WIP=93 sc=10% WIP=100 sc=15% V V U T S=200 S=223 S=15 QP=4 QP=2 U=600gr. U=950gr. order 5 Q=73 Order 4 Q=40 QP=0.1
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6 The search for the new rules... answering these questions for MRP: 2. What limitation does it diminish? 3. What rules helped us to accommodate the limitation? 4. What rules should we use now?
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7 Now let’s try to do the same for ERP: 1. What is the main power of the technology? 2. What limitation does it diminish? 3. What rules helped us to accommodate the limitation? OOPS!
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8 EXAMPLES: 4. Trying to complete every project task on time. 2. Product cost 3. Min-Max replenishment levels . 1. The efficiency syndrome .
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9 Double OOPS! 4. What “rules” should we use now?
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10 The systematic search for the local optima rules and their replacement, the holistic rules .
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11 Complexity system A system B Fundamental belief: There are no complex systems in reality.
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12 Problem Fundamental belief: There are no conflicts in reality.
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13 Manage well. Control cost. Judge according to local impact. Protect sales. Don't judge according to local impact. The management conflict
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14 The production management conflict Manage well.
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