Can Industry 4.0 rejuvenate Total Productive Maintenance?

In this post: TPM in a nutshell Linking Industry 4.0 (smart factories) to TPM TPM autonomous maintenance in 4.0 environment Can Industry 4.0 rejuvenate Total Productive Maintenance? The youngest among my blog readers may not understand what I mean with Total Productive Maintenance, this pre-Lean management approach to maximize machines and equipment effectiveness and aiming … Continue reading Can Industry 4.0 rejuvenate Total Productive Maintenance?

OEE Rescue: OEE is composite and does not tell much per se

Overall Equipment Effectiveness (OEE) is probably the most widespread and well-known among KPIs in industry, which does not mean that everyone likes it. OEE rescue is a series of posts that aim to balance the love-hate comments about this KPI as well as debunking some myths and misconceptions. In this post: OEE is composite and … Continue reading OEE Rescue: OEE is composite and does not tell much per se

Goal Tree: Why must top management define the Critical Success Factors?

Top managers discovering the Goal Tree frequently ask what input they must give and how “deep” they should commit themselves, where is the point of handover to lower ranking managers? In this article I remind some basics about the Goal Tree as well as the necessity for top management to define the Critical Success Factors. … Continue reading Goal Tree: Why must top management define the Critical Success Factors?

Why the Goal Tree is more and more relevant

Command and control management style, based on standardized work and centralized decision-making, becomes increasingly irrelevant as more and more business environments become highly variable and the number and pace of decisions to make soar. What is required is autonomy and accountability as well as alignment on a well understood Goal. The Goal Tree is an … Continue reading Why the Goal Tree is more and more relevant

My takeaways from throughput accounting, the book

I knew the author, Steven M. Bragg from his podcast series “Accounting Best Practices with Steven Bragg” before I came across his book “throughput accounting, a guide to constraint management” published by Wiley & sons, 2007. Book presentation The hard cover book has 178 pages, 10 chapters, easy to read in neat presentation and legible … Continue reading My takeaways from throughput accounting, the book

What is Throughput Accounting?

Throughput Accounting (TA) can be understood as a simplified accounting system based on Theory of Constraints (ToC) principles. TA makes growth-driven management and decision making simpler and understandable even for people not familiar with traditional accounting. Beyond simplifying, TA has a different approach compared to traditional accounting. The latter will focus on cost control (cost … Continue reading What is Throughput Accounting?

Critical Chain Project Management alone is not enough

Critical Chain Project Management (CCPM) alone is not enough to drastically reduce a project’s duration and improve the development process efficiency. CCPM is a proven Project Management approach to ensure a project, any project, will meet its finishing date without compromising quality nor any of the requirements, and even though CCPM can lead to terminate … Continue reading Critical Chain Project Management alone is not enough

Introduction to Throughput Accounting

Throughput accounting comes early for all studying Theory of Constraints.  The simplest is about the 3 KPIs: Throughput (T), Operating Expenses (OE) and Inventory (I) – later changed to Investment – and their relationship for higher profits. Later, Throughput accounting is used to make sound decisions to maximize profit despite limited means, favoring the products with highest “octane”, which is the … Continue reading Introduction to Throughput Accounting