Area: Managing Production and Operations the TOC Way

TOCICO 2014 – Washington

Oded Cohen

Workshop

Transferring understanding of production planning for MTO using Goldratt Simulator (GSim)

Abstract

The Goldratt Simulator (GSim) was built by Eli Schragenheim in 1986 on the base of the computerized OPT game that he developed in 1984. The GSim played a significant role in educating generations of Jonahs and TOC managers around the world. However, it seems that GSim is not widely used anymore and that there are many new members of TOCICO as well as new comers to TOC that hardly know about the simulator and the benefits it gives in transferring the TOC knowledge.

The objective of this workshop is to re-introduce the Gsim to the TOC community and to show how it can be used for transferring the most updated TOC knowledge for managing MTO production and operations.

The workshop will present how to use the GSim for transferring the understanding how to plan MTO production using the base injections of the solution. If the time permits, some views about how to transfer the execution control understanding using GSim will be presented.

Introduction

Since early days of TOC and even before it was called TOC- a major challenge has been – how to transfer the conceptual understanding of managing the TOC way. Today we have the TOC solution for MTO in a very structured way. Nevertheless, we still experience difficulties in comprehension of the injections of the MTO solution. Participants in the training programs appreciate some hands-on work and experience in class so to get better feeling about the essence and meaning of the injections. Just telling them is not enough. Games and computer simulators can significantly help.

We have a high quality simulator – the GSim. Even though it was built for DBR, it can be effectively used for demonstrating S-DBR and the MTO solution. By better knowledge of the GSim and the use of it as an educational tool – the GSim can be integrated into the work of the TOC practitioners and to better support the successful implementation of the MTO solution.

The Structure of the workshop:

The workshop starts with a quick overview of the MTO solution through the three parts: mindset, quick improvements in DDP and POOGI. Thereafter the simulator is presented and explanation how to run it.

Run #1 – the intuitive run The group is given the layout of the plant are asked to production plan for a week. A team of two people (who have not run in before) are asked to come to the front and run the simulator according to their plan. The entire group will watch them following their plan. By the end of each day – an observation will be given about the progress.

By the end of the simulated week:

 Introducing MTO-Injection 1

 Establishing the contribution of production to the bottom line performance of the company through on-time delivery

 Gap analysis – the reasons for the low performance (common excuses and the TOC suggested core problem)

 Direction of solution – Planning the material release

 Establishing the “Drum: - sequencing the customers’ orders

Preparation for Run #2

 Introducing MTO-Injection 2

 Establishing the Production Buffer(s)

 Preparing the Work Orders (WOs)

 Planning how to handle the open WOs

 Releasing of New WOs

 Dealing with common parts (B3)

Run #2 –

 Assigning responsibilities

 Working on open WOs

 Releasing new WOs

 Recording LoS (Length of Stay)

Preparing for Execution Control (optional): Injection 3 – assigning resources (not handled by GSim); Injection 4 – recovery actions and dealing with “Murphy” – machine breakdown and scrap.

Summary

The use of GSim for MTO planning: demonstrating injections 1 and 2.

Show how GSim is used to demonstrate the first 3 of the 5 focusing steps.

Learning Objectives: 1. The way to use the GSim with the implementation team

2. Understanding of the way to communicate MTO-Injection 1 and 2

3. A better appreciation of the practicalities of GSim for checking the comprehension of the changes to production planning

Questions that may be asked:

1. Why there is a different terminology between MTO and the GSim?

2. Why people cannot get the message just by playing the game themselves (self learning)?

3. How to model their reality into the GSim?