Five Focusing Steps – POOGI
Dr. Eliyahu Goldratt gave a very simple yet powerful method of continuous improvement, also known as the Process of On-Going Improvement (POOGI).
THE 3V CATALYST
Yagna follows the principles of the Theory of Constraints. It delivers fast and sustainable results using the same existing resources.
The 3V ingredients:
(Tame indiscriminate) Variety +
(Protect against inherent) Variability +
(Alleviate lack of) Visibility
The 3 Vs impact the flow in every system. The result is high inventory in the system which impedes smooth flow.
Every system is subjected to variability in the form of demand variability, supply variability, and process variability. Of the total variability, some of it is predictable within certain limits and can be controlled, whereas special cause variations are caused by unique events, over which there is little or no control. Buffers are introduced in the system as a means of protecting against the impact of variability.
The Method focuses on dampening the variability by decoupling the supply chain through scientifically calculated inventory buffers and aligning the entire supply chain to the beat of the constraint. The method will be based on the Theory of Constraints (TOC), Demand Driven Materials Requirement Planning (DDMRP), and related Body of Knowledge.
Method results in taking planning decisions, converting them into the working procedure, and automating these decisions via an excel-based planning engine and later transitioned to world-class software.
People behave the way they are measured. In order to align the team’s behavior with the proposed method, it is necessary to replace current conflicting measurements (if any) with a combination of Lead and Lag measures aligned with Throughput, On-Time-in-Full, Buffers Health, and Constraint Exploitation.
request for assessment
Though Yagna strongly believes that every company has the potential to earn much more throughput from the existing investment but still it necessarily insists on conducting assessments before embarking on the TOC Implementation journey.
It not only creates a buy-in on the problems and the direction of the solution but also confirms that there is a good enough business case for both the parties to move to the next step of Adoption.