LearnShareProsper logo Boosting Business_Performance Adele Sommers
by Adele Sommers, Ph.D.
 www.LearnShareProsper.com Adele@LearnShareProsper.com 
In This Issue

March 3, 2011
Volume 7, Issue 3

"How-to" tips and advice on increasing business prosperity, published every other Thursday.

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Greetings!

-- Feature Article: What's Holding You Back? Tips on Managing Your Biggest Constraints

-- Note from the Author: Is Your System Becoming a Drag?

-- Special Message: Two Great Books on Increasing Throughput

-- The Author Recommends: "Flying Logic" Software

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Note from the Author

Is Your System Becoming a Drag?

Man tied to a heavy weight racing the clock


Whenever I talk about productivity,
many folks think I'm referring to what efficiency experts do. Efficiency experts get things done with less time and effort.

They use time-saving tools, techniques, devices, and software to trim, condense, eliminate, combine, or otherwise shortcut laborious, tedious, and time-consuming tasks. They also know how to organize files, desks, computers, and electronic gizmos. They divide up their schedules into highly productive chunks.

Although I greatly value this domain of professional expertise, I prefer to aim my efforts in slightly different directions. Like efficiency experts, I hunt for things that impede productivity. However, the impediments I pursue are not typically those that resolve easily by speeding up work, reducing keystrokes, or organizing space and time more efficiently. They tend to be more complex and multidimensional.

One of these areas is system constraints. They limit our productive capacity and tend to elude our ability to control them. That's why today's newsletter delves more deeply into this type of obstacle. You'll see books, tips, and resources for managing constraints at the system level, as well as working with those under your personal control.

For these reasons, I hope you enjoy today's features, including "What's Holding You Back? Tips on Managing Your Biggest Constraints." Please join the conversation by leaving your comments on my blog!

Here's to your business prosperity,

Adele
Adele Sommers, author of the "Straight Talk on Boosting Business Performance" success program

P.S. If you missed any previous issue, visit the newsletter index!

Special Message

Two Great Books on Increasing Throughput

The Theory of Constraints (TOC), introduced by Dr. Eli Goldratt over two decades ago, has transformed the way businesses operate worldwide. Its practical principles have helped many companies increase system output, optimize tradeoffs, and clarify choices in a variety of different situations -- all by managing constraints.

Instead of simply lecturing on how to apply the TOC principles, Goldratt often uses fictional storytelling to explain the ideas in riveting and memorable detail. The fascinating plots of his business novels help people assimilate a range of insights and applications through an engaging discovery process. For example, two that I use and recommend quite often are:

"Necessary But Not Sufficient" by Eli Goldratt"The Goal," Goldratt's inaugural business novel two decades ago, focuses on the dilemmas and challenges that Alex Rogo, a new plant manager, faces in a serious business predicament.

Since his plant can't seem to ship any of its products on time, Alex learns that the business will go under unless he figures out what to do. He turns to Jonah, a consultant friend of his, whose theories and advice help Alex and his colleagues discover and explain the TOC principles that break through the impasse.

"Critical Chain" by Eli Goldratt"Critical Chain" next explores TOC in the realm of project management. A business professor and class of project managers hypothesize, debate, and finally realize why their projects often run late and over budget, or fail to complete everything that was originally specified.

As the protagonists examine a range of thorny project issues, we vicariously learn how to optimize a project's "critical path," handle resource conflicts, introduce safety buffers, negotiate with subcontractors and suppliers, and predict the effects of early vs. late starts. The resulting formula offers us several powerful ways to resolve these age-old project challenges.

Read on for more information on applying these important principles!

Feature Article

What's Holding You Back?
Tips on Managing Your Biggest Constraints

by Adele Sommers

Are you struggling with getting things done, but nothing you or your company does seems to increase your overall level of output? The problem may be caused by constraints in your workflow, or even limitations in your thinking processes.

This article explores ways to identify and manage constraints in manufacturing, projects, and other business and personal situations. To optimize results, start by avoiding a false sense of productivity in your organization. It really doesn't matter how much each individual department or work group produces (these are called "local efficiencies"); it's what your entire organization puts out that counts.



Where's the Bottleneck? Introducing the Theory of Constraints

Dr. Eli Goldratt introduced the Theory of Constraints (TOC) more than 20 years ago to provide a powerful new way of thinking about ineffective workflow and accounting practices in manufacturing firms. TOC applications have since expanded into project management, software development, marketing, problem solving, interpersonal communications, and more.

In its simplest mode, TOC entails a set of principles for identifying and managing (or ideally, eliminating) limitations and bottlenecks in any business situation. Handling them effectively can vastly increase your potential for success.

Man working on an assembly lineExamples of bottlenecks in manufacturing include processes or pieces of equipment that can't produce more than a certain level of output because of their own volume or speed limitations.

Superhuman effort can't shovel work through the system any faster than the constraints will allow, unless people bypass, work around, or ease each bottleneck's limitations. For example:

  • On the factory floor, a constraint in an assembly process appears wherever piles of material accumulate problematically at any workstation. If that station cannot process the material quickly enough to keep pace with the incoming work, it acts as the "pacing factor" for the entire workflow up to that point. The traditional expeditor's job is usually to bypass the problem by rushing hot work orders around out of sequence. Soon, everything becomes "high priority"!
  • In a food preparation facility, constraints might include the oven capacity or the processing equipment. If one limitation is the oven size, for example, no matter how fast the choppers chop or the sauce makers stir, nothing will allow more than a certain number of lasagna dishes to be cooked at one time. And hiring more people to make sauces or noodles will only add to the backlog if the oven capacity doesn't increase accordingly!

Until someone identifies and resolves these constraints, the whole system remains at their mercy. Frantically expediting work around the bottlenecks makes accurate scheduling impossible. It also produces a chaotic and unpredictable stream of output. Realize that these are system problems that management must resolve; they're usually outside the control of individual workers.

The good news is that you can optimize the workflow to make the constraints the stars of the show. In so doing, you can better schedule -- and therefore, predict -- the speed and output of the workflow. For example, you could consider whether to:

  • Bottles moving through an assembly lineIncrease the capacity of the bottleneck by replacing or retrofitting the slower equipment with faster, more efficient, or larger-sized models.
  • Buy, borrow, or rent similar, low-capacity equipment and use it in tandem with the existing equipment, which will increase the throughput.
  • Schedule additional shifts to run the slower, existing equipment, thereby reducing the backlog and keeping pace with the incoming material.
  • Modify the product designs, streamline processes, and/or resequence the workflow to either remove or better utilize the bottleneck.


Battling Constraints in Projects

Sometimes, despite our best intentions, we bite off more than we can chew -- or find that a mundane flow of project activities is suddenly backlogged and threatens to derail our ability to complete the project on time.

If your progress reports show too much work to accomplish in the time available, try to determine where the bottlenecks exist in the planned activity sequence. Whether you discover the blockade through simple observation or via sophisticated computer modeling, you can brainstorm a variety of ways to relieve it.

Possible bottleneck in the project workflowFor instance, you could focus all attention on supplying resources to the bottleneck. You could possibly accelerate the flow of work by relieving some performers of the time-consuming tasks. Consider whether some jobs that generalists perform could occur in "assembly line mode," where specialists step in to handle certain things.

For example, let's say that highly skilled information designers would normally do a large amount of editing and formatting as part of their roles. Yet they easily become bogged down in those painstaking tasks.

So you might investigate whether using specialized editors and formatters could remove that burden from the generalists' shoulders, leaving them to concentrate on the remainder of what they do best. Shifting the workload around in this way could reduce pressure, speed up the work, and potentially save the day for the project!



Constraints in Other Business and Personal Situations

You may have felt the effects of subtle and not-so-subtle constraints that keep you from accomplishing all that is possible in your business and professional life. This is yet another dimension of TOC.

Man pulling a giant snail shell (constraint)Have you ever wondered whether any drag you've been experiencing occurs from insufficient knowledge, smarts, energy, talent, commitment, or resolve? These arenas represent aspects of your potential, but aren't necessarily what's holding you back.

For example, you may have been pondering whether to attend more classes, put in more time, improve your skill set, or otherwise struggle even more valiantly than you already do. If so, you'll be glad to know that the answers may be simpler and more precise than the range of possibilities you've been considering.

According to business advisor Rich Schefren, our real successes do not relate as much to demonstrating our potential as they do to removing our constraints. Focusing on and removing our constraints (by asking, "What's holding me back?") often is more effective than perfecting our potential. Our constraints could be rational, procedural, or self-imposed, such as:

  • Linear thinking that prevents us from seeing our organizations as complete systems (rational)
  • Bottlenecks in our selling processes that prevent prospective customers from completing purchasing transactions (procedural)
  • A fear of making mistakes, even though experimentation is what helps us learn what works and what doesn't (self-imposed)

In conclusion, identifying and managing business and personal constraints could offer the "silver bullets" your organization needs to excel. In so doing, you can stop swimming upstream, break through previous barriers, and enjoy increasing success.

©2011 Adele Sommers

The Author Recommends

"Flying Logic" Software

Flying Logic software by SciralThe developers of TOC defined the six Focusing Steps, below, which define a process of ongoing improvement.

"Flying Logic" software by Sciral helps you apply these Focusing Steps to remove your own personal constraints. The software lets you construct dynamic diagrams of your thinking processes (similar to flowcharts, but much more powerful). It provides a step-by-step way to think through any type of problem using a logic-based approach.

  1. Articulate the goal of the system. How do we measure the system's success?
  2. Identify the constraint. What is the resource limiting the system from attaining more of its goal?
  3. Exploit the constraint to its fullest. How can we keep the constraining resource as busy as possible, exclusively on what it does best?
  4. Subordinate all other processes to the decisions made in Step 2. How can we align all processes to give the constraining resource everything it needs?
  5. Elevate the constraint. If managing the constraining resource more efficiently does not give us all the improvement we need, then how can we acquire more of the resource?
  6. Avoid inertia. Has the constraint moved to some other resource as a result of the previous steps? If so, don't allow inertia itself to become the constraint: go back to Step 1.
About the Author

"Straight Talk" Special Report
"Straight Talk" Workbook

Adele Sommers, Ph.D. is the author of "Straight Talk on Boosting Business Performance" -- an award-winning Special Report and Workbook program.

If you liked today's issue, you'll love this down-to-earth overview of how 12 potent business-boosting strategies can reenergize the morale and productivity of your enterprise, tame unruly projects, and attract loyal, satisfied customers. It's accompanied by a step-by-step workbook designed to help you easily create your own success action plan. Browse the table of contents and reader reviews on the description page.

Adele also offers no-cost articles and resources to help small businesses and large organizations accelerate productivity and increase profitability. Learn more at LearnShareProsper.com.

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