| Description |
1 online resource (1 volume) : illustrations |
| Note |
Includes index. |
| Summary |
"Implement demand driven smart metrics to drive and sustain dramatic gains in flow and improve ROI performance. What if the objective of minimizing unit product cost that is hard coded into all reporting and measurement systems is simply "bad math" that drives decisions and actions that destroy ROI? In today's volatile, globally competitive environment, new decision-making tools are required to monitor, measure, and improve total organizational performance. Adherence to "old" operational rules, tools, and behaviors is killing competitiveness in most enterprises. A fundamental shift is required. Cowritten by internationally recognized experts in the field, Demand Driven Performance explains why current measurement forms must be replaced. The authors present a demand driven blueprint and the smart metrics to maximize flow and ROI." |
| Contents |
Cover -- Title Page -- Copyright Page -- About the Authors -- Contents -- Foreword -- You Can Do This-a CEO's Perspective -- About Dan Eckermann -- Preface -- About This Collaboration -- Acknowledgments -- Introduction: Deep Truth -- Chapter 1: The Need to Get Smarter -- Are We Even Playing by the Right Rules? -- Area 1: Planning and Materials Management -- Area 2: Costing Systems -- Area 1 + Area 2 = Big Problems -- The Rise of the New Normal -- The Push-and-Promote Problem -- The Need for Flow -- Variability-Enemy Number One of Flow -- The Types of Variability -- Demand Variability -- Supply Variability -- Operational Variability or "Murphy" -- Management Variability -- Getting Smarter-A Basic Blueprint for Change -- Step 1: Install the Right Thoughtware in the Organization -- Step 2: Become Demand Driven -- Step 3: Deploy Smart Metrics-Rules for the Smarter Way -- Chapter 2: Install Thoughtware in the Organization -- Can Our Organizations Think Systemically? -- Modern Organizations-Conflict Factories -- Conflicts and Oscillation -- A Short Story about Oscillation -- The Real Definition of Waste -- Chapter 3: Becoming Demand Driven -- Push and Promote to Position and Pull -- Accepting the Changes Inherent in the New Normal -- Embracing Flow and Its Implications -- Designing the Demand Driven Operating Model -- Placing Decoupling Points -- Placing Control Points -- A Decoupling and Control Point Example -- Protecting Decoupling and Control Points -- Demand Driven Stock Buffers -- Demand Driven Time Buffers -- Demand Driven Capacity Buffers -- Bringing the Demand Driven Model to the Organization -- Operating and Sustaining the Demand Driven Model -- Chapter 4: Introducing Smarter Metrics -- The Search for a Deeper Truth -- Quantifying the Performance Gap -- Smarter Metrics -- Company 1: Oregon Freeze Dry -- Company 2: Jamestown Container Company. |
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The Results -- Company 3: LeTourneau Technologies, Inc. -- Company 4: M.C. Gill Corporation -- Lessons from the Four Companies -- Chapter 5: How Do We Know What's True? -- The Scientific Method -- Monthly Meeting of "Company Normal" -- Using Consistent Terminology -- What Is a Scientific Fact? -- What Is a Theory? -- What Is Proof? -- What Is Scientific Proof? -- Back to the Scientific Method -- Unit Cost-Centric Efficiency-A Deep and Universal Truth -- Chapter 6: Efficiency, Flow, and the Right Measures -- The "Right" Measures -- Defining Cost -- Chapter 7: Our Current Accounting Measuring Mess -- Reason 1: The Proliferation of ERP/MRP II -- Reason 2: The Growing Distance between the Front Office and Operations -- Reason 3: The Fading Away of Management Accounting -- Gap Explanation 1: An Increase in Complexity -- Gap Explanation 2: The Shift from Linear to Nonlinear Systems -- Silo Thinking -- Challenging a Deep Truth by Definition Shakes Up the Status Quo -- Chapter 8: The Evolution of Flow and ROI as Strategy -- The Birth of Product Costing -- The Birth of Decentralized Management -- An Accelerant-Andrew Carnegie -- The Rise of Wholesale Distribution and Large-Scale Retail -- The Birth of Conglomerates and Management Accounting -- Automation and the Death of the Craftsman -- Ford versus General Motors-A Lesson of Relevancy -- How Did GM Beat Ford? -- The Birth of Push and Promote -- Systemizing the Management of ROI -- The Emphasis on GAAP and the Rise of Unfocused Improvement and Outsourcing -- Chapter 9: A Case Study-The Boeing Dreamliner -- The Boeing Dreamliner -- Chapter 10: Complexity Science and Supply Chains -- The Newtonian Way -- The Push Beyond Newton -- Complexity -- Chaos and Complexity Theory Maturation -- Supply Chains as Complex Adaptive Systems -- The Simplicity in Complexity -- Understanding Complex Systems. |
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What Makes a System Complex? -- Complex Systems are Nonlinear -- The Move beyond Complexity Theory-Complex Adaptive Systems (CASs) -- Boundaries -- Coherence -- The Edge of Chaos -- Self-Organization and Emergence -- Emergence and Innovation -- Self-Balancing Feedback Loops Maintain Stability -- Resilience and Rigidity -- A Complex Adaptive System Example-Company Normal -- Reference Examples for Complex Adaptive Systems -- Connections and Interactions in Nonlinear Systems -- CAS and the Demand Driven Operating Model -- Data Collection and Feedback Loops -- Demand Driven and Resiliency versus Rigidity -- Summary -- Conclusion -- Chapter 11: Smart Metrics -- Managing in a Pareto World Calls for New Thinking -- The Power of Pareto and Strategic Buffers -- Stock Buffers, Pareto Analysis, and Smart Metric Objectives -- The Purpose and Size of Each Strategic Stock Buffer Zone -- Strategic Stock Focused Improvements -- Flow Indexes -- Capacity Buffers, Pareto Analysis, and Smart Metric Objectives -- Our Reference Environment -- The System and Paretian View of Resource Capacity -- The Implications of the Sales and Operating Plan for Strategic Capacity Investment -- Cost, Volume, Profit Relevant Range Is Defined by the Scarce Capacity Resource -- Allocating Scarce Capacity to the Market Based on Strategic Contribution -- Prioritizing the Product Mix by Throughput Dollar Rate Changes the CVP Graph -- Calculating the Value of Finding More Lathe Capacity -- Relevant Information for Strategic Outsourcing -- The Case for Acquiring Internal Lathe Capacity -- A Summary of the Financial and Nonfinancial Factors of Outsourcing or Capital Investment -- The Third Alternative-Using Smart Metrics to Find Capacity -- Summary on Strategic Investments in Capacity and Stock -- The Scheduling Implications of Stock Buffers -- Stock Buffers' Role in Execution. |
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Control Points and Resource Scheduling -- Time Buffers and Reliable Schedule Execution -- Time Buffers as the Execution Feedback Loop for Manufacturing -- Time Buffers Require Ten Zones -- Time Buffers During Work Order Execution -- Minimizing Control Point Disruption -- Schedule Execution Coherence and Priority Alignment -- Assigning Roles and Responsibilities -- Larger, More Complex, Multisite System Control Requirements -- The Cheat Sheet for a Demand Driven Performance System -- Ask and Answer Five Key Questions Hourly, Daily, Weekly, and Monthly -- Ensure the Five Critical Data Capture Points to Provide the Smart Metric Answers are Timely -- Plan an Executable Schedule Focused on System Flow and the Market Lead-Time Strategy -- Expect Reliability, Stability, and Speed -- Remove Cost-Centric Competing Measures -- Chapter 12: Summary -- Performance Measurement Built on a New Deep Truth -- The Need for Steady Feedback -- Focus on Improvement -- A Final Thought on Information Technology -- Appendix A: More on the Strategic Replenishment Buffers of Demand Driven MRP (DDMRP) -- Sizing Buffers -- Green Zone -- Yellow Zone -- Red Zone -- Planned Adjustments -- Supply Order Generation -- Index. |
| Subject |
Production management -- Statistical methods.
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Industrial management -- Statistical methods.
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Performance.
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Costs, Industrial.
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System theory.
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Performance technology.
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Task Performance and Analysis |
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Systems Theory |
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Production -- Gestion -- Méthodes statistiques. |
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Gestion d'entreprise -- Méthodes statistiques. |
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Rendement au travail. |
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Coût de production. |
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Théorie des systèmes. |
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Costs, Industrial |
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Industrial management -- Statistical methods |
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Performance |
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Production management -- Statistical methods |
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System theory |
| Added Author |
Smith, Chad, 1971- author.
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| Other Form: |
Print version: Smith, Debra, 1954- Demand driven performance. New York : McGraw-Hill Education, [2014] 9780071796095 (DLC) 2013037670 (OCoLC)859061549 |
| ISBN |
9780071796101 |
|
007179610X |
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0071796096 |
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9780071796095 |
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