ÿþ<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"> <head> <meta http-equiv=Content-Type content="text/html; charset=unicode"> <meta name=ProgId content=Word.Document> <meta name=Generator content="Microsoft Word 15"> <meta name=Originator content="Microsoft Word 15"> <link rel=File-List href="Next%20Step%20War%20Stories_files/filelist.xml"> <link rel=Edit-Time-Data href="Next%20Step%20War%20Stories_files/editdata.mso"> <!--[if !mso]> <style> v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);} </style> <![endif]--> <title>Theory of Constraints Next Step Stories</title> <!--[if gte mso 9]><xml> <o:DocumentProperties> <o:Author>Dr Kelvyn Youngman</o:Author> <o:Keywords>Theory of Constraints TOC</o:Keywords> <o:Template>Normal</o:Template> <o:LastAuthor>Dr Kelvyn Youngman</o:LastAuthor> <o:Revision>3</o:Revision> <o:TotalTime>1432</o:TotalTime> <o:Created>2015-07-14T08:17:00Z</o:Created> <o:LastSaved>2015-07-14T08:17:00Z</o:LastSaved> <o:Pages>12</o:Pages> <o:Words>3257</o:Words> <o:Characters>18565</o:Characters> <o:Lines>154</o:Lines> <o:Paragraphs>43</o:Paragraphs> <o:CharactersWithSpaces>21779</o:CharactersWithSpaces> <o:Version>15.00</o:Version> </o:DocumentProperties> <o:OfficeDocumentSettings> <o:AllowPNG/> <o:DoNotRelyOnCSS/> </o:OfficeDocumentSettings> </xml><![endif]--> <link rel=themeData href="Next%20Step%20War%20Stories_files/themedata.thmx"> <link rel=colorSchemeMapping href="Next%20Step%20War%20Stories_files/colorschememapping.xml"> <!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Print</w:View> <w:DontDisplayPageBoundaries/> <w:DisplayBackgroundShape/> <w:SpellingState>Clean</w:SpellingState> <w:TrackMoves>false</w:TrackMoves> <w:TrackFormatting/> <w:DrawingGridHorizontalSpacing>7.1 pt</w:DrawingGridHorizontalSpacing> <w:DrawingGridVerticalSpacing>7.1 pt</w:DrawingGridVerticalSpacing> <w:ValidateAgainstSchemas/> <w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid> <w:IgnoreMixedContent>false</w:IgnoreMixedContent> <w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText> <w:DoNotPromoteQF/> <w:LidThemeOther>EN-NZ</w:LidThemeOther> <w:LidThemeAsian>X-NONE</w:LidThemeAsian> <w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript> <w:Compatibility> <w:BreakWrappedTables/> <w:ApplyBreakingRules/> <w:SplitPgBreakAndParaMark/> </w:Compatibility> <w:DoNotOptimizeForBrowser/> <m:mathPr> <m:mathFont m:val="Cambria Math"/> <m:brkBin m:val="before"/> <m:brkBinSub m:val="&#45;-"/> <m:smallFrac m:val="off"/> <m:dispDef/> <m:lMargin m:val="0"/> <m:rMargin m:val="0"/> <m:defJc m:val="centerGroup"/> <m:wrapIndent m:val="1440"/> <m:intLim m:val="subSup"/> <m:naryLim m:val="undOvr"/> </m:mathPr></w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="false" DefSemiHidden="false" DefQFormat="false" LatentStyleCount="371"> <w:LsdException Locked="false" QFormat="true" Name="Normal"/> <w:LsdException Locked="false" QFormat="true" Name="heading 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 4"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 5"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 6"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 7"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 8"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="heading 9"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 4"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 5"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 6"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 7"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 8"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index 9"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toc 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toc 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toc 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toc 4"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toc 5"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toc 6"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toc 7"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toc 8"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toc 9"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Normal Indent"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="footnote text"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="annotation text"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="header"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="footer"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="index heading"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="caption"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="table of figures"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="envelope address"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="envelope return"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="footnote reference"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="annotation reference"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="line number"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="page number"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="endnote reference"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="endnote text"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="table of authorities"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="macro"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="toa heading"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Bullet"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Bullet 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Bullet 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Bullet 4"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Bullet 5"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Number 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Number 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Number 4"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Number 5"/> <w:LsdException Locked="false" QFormat="true" Name="Title"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Closing"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Signature"/> <w:LsdException Locked="false" Priority="1" SemiHidden="true" UnhideWhenUsed="true" Name="Default Paragraph Font"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text Indent"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Continue"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Continue 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Continue 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Continue 4"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="List Continue 5"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Message Header"/> <w:LsdException Locked="false" QFormat="true" Name="Subtitle"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text First Indent 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Note Heading"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text Indent 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Body Text Indent 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Block Text"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Hyperlink"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="FollowedHyperlink"/> <w:LsdException Locked="false" QFormat="true" Name="Strong"/> <w:LsdException Locked="false" QFormat="true" Name="Emphasis"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Document Map"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Plain Text"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="E-mail Signature"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Top of Form"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Bottom of Form"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Normal (Web)"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Acronym"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Address"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Cite"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Code"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Definition"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Keyboard"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Preformatted"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Sample"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Typewriter"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="HTML Variable"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Normal Table"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="annotation subject"/> <w:LsdException Locked="false" Priority="99" SemiHidden="true" UnhideWhenUsed="true" Name="No List"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Outline List 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Outline List 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Outline List 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Simple 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Simple 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Simple 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Classic 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Classic 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Classic 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Classic 4"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Colorful 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Colorful 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Colorful 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Columns 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Columns 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Columns 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Columns 4"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Columns 5"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 4"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 5"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 6"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 7"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Grid 8"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 4"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 5"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 6"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 7"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table List 8"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table 3D effects 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table 3D effects 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table 3D effects 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Contemporary"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Elegant"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Professional"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Subtle 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Subtle 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Web 1"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Web 2"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Web 3"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Balloon Text"/> <w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true" Name="Table Theme"/> <w:LsdException Locked="false" Priority="99" SemiHidden="true" Name="Placeholder Text"/> <w:LsdException Locked="false" Priority="1" QFormat="true" Name="No Spacing"/> <w:LsdException Locked="false" Priority="60" Name="Light Shading"/> <w:LsdException Locked="false" Priority="61" Name="Light List"/> <w:LsdException Locked="false" Priority="62" Name="Light Grid"/> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1"/> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2"/> <w:LsdException Locked="false" Priority="65" Name="Medium List 1"/> <w:LsdException Locked="false" Priority="66" Name="Medium List 2"/> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1"/> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2"/> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3"/> <w:LsdException Locked="false" Priority="70" Name="Dark List"/> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading"/> <w:LsdException Locked="false" Priority="72" Name="Colorful List"/> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid"/> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 1"/> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 1"/> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 1"/> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 1"/> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 1"/> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 1"/> <w:LsdException Locked="false" Priority="99" SemiHidden="true" Name="Revision"/> <w:LsdException Locked="false" Priority="34" QFormat="true" Name="List Paragraph"/> <w:LsdException Locked="false" Priority="29" QFormat="true" Name="Quote"/> <w:LsdException Locked="false" Priority="30" QFormat="true" Name="Intense Quote"/> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 1"/> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 1"/> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 1"/> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 1"/> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 1"/> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 1"/> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 1"/> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 1"/> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 2"/> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 2"/> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 2"/> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 2"/> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 2"/> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 2"/> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 2"/> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 2"/> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 2"/> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 2"/> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 2"/> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 2"/> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 2"/> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 2"/> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 3"/> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 3"/> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 3"/> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 3"/> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 3"/> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 3"/> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 3"/> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 3"/> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 3"/> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 3"/> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 3"/> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 3"/> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 3"/> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 3"/> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 4"/> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 4"/> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 4"/> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 4"/> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 4"/> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 4"/> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 4"/> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 4"/> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 4"/> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 4"/> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 4"/> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 4"/> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 4"/> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 4"/> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 5"/> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 5"/> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 5"/> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 5"/> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 5"/> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 5"/> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 5"/> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 5"/> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 5"/> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 5"/> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 5"/> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 5"/> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 5"/> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 5"/> <w:LsdException Locked="false" Priority="60" Name="Light Shading Accent 6"/> <w:LsdException Locked="false" Priority="61" Name="Light List Accent 6"/> <w:LsdException Locked="false" Priority="62" Name="Light Grid Accent 6"/> <w:LsdException Locked="false" Priority="63" Name="Medium Shading 1 Accent 6"/> <w:LsdException Locked="false" Priority="64" Name="Medium Shading 2 Accent 6"/> <w:LsdException Locked="false" Priority="65" Name="Medium List 1 Accent 6"/> <w:LsdException Locked="false" Priority="66" Name="Medium List 2 Accent 6"/> <w:LsdException Locked="false" Priority="67" Name="Medium Grid 1 Accent 6"/> <w:LsdException Locked="false" Priority="68" Name="Medium Grid 2 Accent 6"/> <w:LsdException Locked="false" Priority="69" Name="Medium Grid 3 Accent 6"/> <w:LsdException Locked="false" Priority="70" Name="Dark List Accent 6"/> <w:LsdException Locked="false" Priority="71" Name="Colorful Shading Accent 6"/> <w:LsdException Locked="false" Priority="72" Name="Colorful List Accent 6"/> <w:LsdException Locked="false" Priority="73" Name="Colorful Grid Accent 6"/> <w:LsdException Locked="false" Priority="19" QFormat="true" Name="Subtle Emphasis"/> <w:LsdException Locked="false" Priority="21" QFormat="true" Name="Intense Emphasis"/> <w:LsdException Locked="false" Priority="31" QFormat="true" Name="Subtle Reference"/> <w:LsdException Locked="false" Priority="32" QFormat="true" Name="Intense Reference"/> <w:LsdException Locked="false" Priority="33" QFormat="true" Name="Book Title"/> <w:LsdException Locked="false" Priority="37" SemiHidden="true" UnhideWhenUsed="true" Name="Bibliography"/> <w:LsdException Locked="false" Priority="39" SemiHidden="true" UnhideWhenUsed="true" QFormat="true" Name="TOC Heading"/> <w:LsdException Locked="false" Priority="41" Name="Plain Table 1"/> <w:LsdException Locked="false" Priority="42" Name="Plain Table 2"/> <w:LsdException Locked="false" Priority="43" Name="Plain Table 3"/> <w:LsdException Locked="false" Priority="44" Name="Plain Table 4"/> <w:LsdException Locked="false" Priority="45" Name="Plain Table 5"/> <w:LsdException Locked="false" Priority="40" Name="Grid Table Light"/> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light"/> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2"/> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3"/> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4"/> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark"/> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful"/> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful"/> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 1"/> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 1"/> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 1"/> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 1"/> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 1"/> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 1"/> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 1"/> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 2"/> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 2"/> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 2"/> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 2"/> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 2"/> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 2"/> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 2"/> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 3"/> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 3"/> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 3"/> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 3"/> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 3"/> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 3"/> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 3"/> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 4"/> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 4"/> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 4"/> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 4"/> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 4"/> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 4"/> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 4"/> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 5"/> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 5"/> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 5"/> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 5"/> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 5"/> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 5"/> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 5"/> <w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light Accent 6"/> <w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 6"/> <w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 6"/> <w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 6"/> <w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 6"/> <w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful Accent 6"/> <w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful Accent 6"/> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light"/> <w:LsdException Locked="false" Priority="47" Name="List Table 2"/> <w:LsdException Locked="false" Priority="48" Name="List Table 3"/> <w:LsdException Locked="false" Priority="49" Name="List Table 4"/> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark"/> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful"/> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful"/> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 1"/> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 1"/> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 1"/> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 1"/> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 1"/> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 1"/> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 1"/> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 2"/> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 2"/> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 2"/> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 2"/> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 2"/> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 2"/> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 2"/> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 3"/> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 3"/> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 3"/> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 3"/> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 3"/> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 3"/> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 3"/> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 4"/> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 4"/> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 4"/> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 4"/> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 4"/> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 4"/> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 4"/> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 5"/> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 5"/> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 5"/> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 5"/> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 5"/> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 5"/> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 5"/> <w:LsdException Locked="false" Priority="46" Name="List Table 1 Light Accent 6"/> <w:LsdException Locked="false" Priority="47" Name="List Table 2 Accent 6"/> <w:LsdException Locked="false" Priority="48" Name="List Table 3 Accent 6"/> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 6"/> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 6"/> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 6"/> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 6"/> </w:LatentStyles> </xml><![endif]--> <style> <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:1; mso-generic-font-family:roman; mso-font-format:other; mso-font-pitch:variable; mso-font-signature:0 0 0 0 0 0;} @font-face {font-family:Tahoma; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-520081665 -1073717157 41 0 66047 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin:0cm; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman",serif; mso-fareast-font-family:"Times New Roman"; color:white;} a:link, span.MsoHyperlink {mso-style-noshow:yes; color:gray; text-decoration:underline; text-underline:single;} a:visited, span.MsoHyperlinkFollowed {mso-style-noshow:yes; color:gray; text-decoration:underline; text-underline:single;} p {mso-style-noshow:yes; mso-style-link:"Normal \(Web\) Char"; mso-margin-top-alt:auto; margin-right:0cm; mso-margin-bottom-alt:auto; margin-left:0cm; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman",serif; mso-fareast-font-family:"Times New Roman"; color:white;} p.MsoAcetate, li.MsoAcetate, div.MsoAcetate {mso-style-noshow:yes; mso-style-link:"Balloon Text Char"; margin:0cm; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:8.0pt; font-family:"Tahoma",sans-serif; mso-fareast-font-family:"Times New Roman"; color:white;} span.NormalWebChar {mso-style-name:"Normal \(Web\) Char"; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:"Normal \(Web\)"; mso-ansi-font-size:12.0pt; mso-bidi-font-size:12.0pt; color:white; mso-ansi-language:EN-GB; mso-fareast-language:EN-GB; mso-bidi-language:AR-SA;} span.BalloonTextChar {mso-style-name:"Balloon Text Char"; mso-style-noshow:yes; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:"Balloon Text"; mso-ansi-font-size:8.0pt; mso-bidi-font-size:8.0pt; font-family:"Tahoma",sans-serif; mso-ascii-font-family:Tahoma; mso-hansi-font-family:Tahoma; mso-bidi-font-family:Tahoma; color:white;} span.SpellE {mso-style-name:""; mso-spl-e:yes;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt;} @page WordSection1 {size:21.0cm 842.0pt; margin:72.0pt 14.2pt 72.0pt 14.2pt; mso-header-margin:0cm; mso-footer-margin:0cm; mso-paper-source:0;} div.WordSection1 {page:WordSection1;} --> </style> <!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman",serif;} </style> <![endif]--><!--[if gte mso 9]><xml> <o:shapedefaults v:ext="edit" spidmax="1037" strokecolor="white"> <v:stroke endarrow="block" color="white"/> <o:colormru v:ext="edit" colors="#006"/> </o:shapedefaults></xml><![endif]--><!--[if gte mso 9]><xml> <o:shapelayout v:ext="edit"> <o:idmap v:ext="edit" data="1"/> </o:shapelayout></xml><![endif]--> </head> <body bgcolor="#000066" background="Next%20Step%20War%20Stories_files/image001.png" lang=EN-NZ link=gray vlink=gray style='tab-interval:36.0pt'> <!--[if gte vml 1]><v:background id="_x0000_s1025" o:bwmode="white" fillcolor="#006" o:targetscreensize="1024,768"> <v:fill src="Next%20Step_files/image001.jpg" color2="fill darken(118)" method="linear sigma" type="gradient"/> </v:background><![endif]--> <div class=WordSection1> <p class=MsoNormal align=center style='text-align:center'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family: "Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <div align=center> <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=687 style='width:515.0pt;mso-cellspacing:0cm;mso-yfti-tbllook:1184;mso-padding-alt: 0cm 5.4pt 0cm 5.4pt'> <tr style='mso-yfti-irow:0;mso-yfti-firstrow:yes'> <td width="100%" colspan=6 valign=top style='width:100.0%;padding:.75pt .75pt .75pt .75pt'> <p class=MsoNormal align=center style='mso-margin-top-alt:auto;mso-margin-bottom-alt: auto;text-align:center'><font size=4 color=white face=Arial><span lang=EN-US style='font-size:14.0pt;font-family:"Arial",sans-serif;mso-ansi-language: EN-US;mso-fareast-language:JA'>A Guide to Implementing the Theory of Constraints (TOC)<br style='mso-special-character:line-break'> <![if !supportLineBreakNewLine]><br style='mso-special-character:line-break'> <![endif]><o:p></o:p></span></font></p> </td> </tr> <tr style='mso-yfti-irow:1;mso-yfti-lastrow:yes'> <td width="16%" valign=top style='width:16.66%;padding:0cm 5.4pt 0cm 5.4pt'> <p class=MsoNormal align=center style='mso-margin-top-alt:auto;mso-margin-bottom-alt: auto;text-align:center'><font size=3 color=silver face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif;color:silver; mso-ansi-language:EN-US;mso-fareast-language:JA'><a href="Overview%20PowerPoints.htm"><font color=silver><span style='color:silver'>PowerPoints</span></font></a><o:p></o:p></span></font></p> </td> <td width="16%" valign=top style='width:16.66%;padding:0cm 5.4pt 0cm 5.4pt'> <p class=MsoNormal align=center style='mso-margin-top-alt:auto;mso-margin-bottom-alt: auto;text-align:center'><font size=3 color=silver face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif;color:silver; mso-ansi-language:EN-US;mso-fareast-language:JA'><a href="Overview%20Preface.htm"><font color=silver><span style='color:silver'>Preface</span></font></a><o:p></o:p></span></font></p> </td> <td width="16%" valign=top style='width:16.66%;padding:0cm 5.4pt 0cm 5.4pt'> <p class=MsoNormal align=center style='mso-margin-top-alt:auto;mso-margin-bottom-alt: auto;text-align:center'><u><font size=3 color=silver face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif;color:silver; mso-ansi-language:EN-US;mso-fareast-language:JA'><a href="Overview%20Introduction.htm"><font color=silver><span style='color: silver'>Introduction</span></font></a><o:p></o:p></span></font></u></p> </td> <td width="16%" valign=top style='width:16.66%;padding:0cm 5.4pt 0cm 5.4pt'> <p class=MsoNormal align=center style='mso-margin-top-alt:auto;mso-margin-bottom-alt: auto;text-align:center'><font size=3 color=silver face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif;color:silver; mso-ansi-language:EN-US;mso-fareast-language:JA'><a href="Overview%20Table%20of%20Contents.htm"><font color=silver><span style='color:silver'>Contents</span></font></a><o:p></o:p></span></font></p> </td> <td width="16%" valign=top style='width:16.66%;padding:0cm 5.4pt 0cm 5.4pt'> <p class=MsoNormal align=center style='mso-margin-top-alt:auto;mso-margin-bottom-alt: auto;text-align:center'><font size=3 color=yellow face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif;color:yellow; mso-ansi-language:EN-US;mso-fareast-language:JA'><a href="Next%20Step.htm"><font color=yellow><span style='color:yellow'>Next Step</span></font></a><o:p></o:p></span></font></p> </td> <td width="16%" valign=top style='width:16.7%;padding:0cm 5.4pt 0cm 5.4pt'> <p class=MsoNormal align=center style='mso-margin-top-alt:auto;mso-margin-bottom-alt: auto;text-align:center'><font size=3 color=silver face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif;color:silver; mso-ansi-language:EN-US;mso-fareast-language:JA'><a href="Advanced.htm"><font color=silver><span style='color:silver'>Advanced</span></font></a><o:p></o:p></span></font></p> </td> </tr> </table> </div> <p class=MsoNormal align=center style='text-align:center'><font size=3 color="#999999" face=Arial><span style='font-size:12.0pt;font-family:"Arial",sans-serif; color:#999999'><o:p>&nbsp;</o:p></span></font></p> <div align=center> <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=687 style='width:515.1pt;mso-cellspacing:0cm;mso-yfti-tbllook:1184;mso-padding-alt: 0cm 5.4pt 0cm 5.4pt'> <tr style='mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes'> <td valign=top style='padding:.75pt .75pt .75pt .75pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver'><a href="Bottom%20Line.htm"><font color=silver><span style='color:silver'>Bottom Line</span></font></a><o:p></o:p></span></font></p> </td> <td valign=top style='padding:0cm 5.4pt 0cm 5.4pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver'><a href="Production.htm"><font color=silver><span style='color:silver'>Production</span></font></a><o:p></o:p></span></font></p> </td> <td valign=top style='padding:0cm 5.4pt 0cm 5.4pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver'><a href="Supply%20Chain.htm"><font color=silver><span style='color:silver'>Supply Chain</span></font></a><o:p></o:p></span></font></p> </td> <td valign=top style='padding:0cm 5.4pt 0cm 5.4pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver'><a href="Thinking%20Process.htm"><font color=silver><span style='color:silver'>Tool Box</span></font></a><o:p></o:p></span></font></p> </td> <td valign=top style='padding:0cm 5.4pt 0cm 5.4pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver'><a href="Strategy.htm"><font color=silver><span style='color:silver'>Strategy</span></font></a><o:p></o:p></span></font></p> </td> <td valign=top style='padding:0cm 5.4pt 0cm 5.4pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver'><a href="Projects.htm"><font color=silver><span style='color:silver'>Projects</span></font></a><o:p></o:p></span></font></p> </td> <td valign=top style='padding:0cm 5.4pt 0cm 5.4pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver'><a href="&amp;%20More.htm"><font color=silver><span style='color:silver'>&amp; More ...</span></font></a><o:p></o:p></span></font></p> </td> <td valign=top style='padding:0cm 5.4pt 0cm 5.4pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver'><a href="Healthcare.htm"><font color=silver><span style='color:silver'>Healthcare</span></font></a><o:p></o:p></span></font></p> </td> </tr> </table> </div> <p class=MsoNormal align=center style='text-align:center'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family: "Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <div align=center> <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=687 style='width:515.0pt;mso-cellspacing:0cm;mso-yfti-tbllook:1184;mso-padding-alt: 24.0pt 5.4pt 24.0pt 5.4pt'> <tr style='mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes'> <td width="16%" valign=top style='width:16.66%;padding:.75pt .75pt .75pt .75pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver;mso-ansi-language:EN-US'><a href="Next%20Step%20Contacts.htm"><font color=silver><span style='color:silver'>Contacts</span></font></a><o:p></o:p></span></font></p> </td> <td width="16%" valign=top style='width:16.66%;padding:.75pt .75pt .75pt .75pt'> <p align=center style='text-align:center'><font size=3 color=yellow face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; color:yellow;mso-ansi-language:EN-US'><a href="Next%20Step%20War%20Stories.htm"><font color=yellow><span style='color:yellow'>War Stories</span></font></a></span></font><font color=silver face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif; color:silver;mso-ansi-language:EN-US'><o:p></o:p></span></font></p> </td> <td width="16%" valign=top style='width:16.66%;padding:.75pt .75pt .75pt .75pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver;mso-ansi-language:EN-US'><a href="Next%20Step%20Bibliography.htm"><font color=silver><span style='color:silver'>Bibliography</span></font></a><o:p></o:p></span></font></p> </td> <td width="16%" valign=top style='width:16.66%;padding:.75pt .75pt .75pt .75pt'> <p class=MsoNormal align=center style='text-align:center'><font size=3 color=silver face=Arial><span lang=EN-US style='font-size:12.0pt;font-family: "Arial",sans-serif;color:silver;mso-ansi-language:EN-US'><a href="Next%20Step%20Links%20&amp;%20Resources.htm"><font color=silver><span style='color:silver'>Links &amp; Resources</span></font></a><o:p></o:p></span></font></p> </td> <td width="16%" valign=top style='width:16.66%;padding:.75pt .75pt .75pt .75pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver;mso-ansi-language:EN-US'><a href="Next%20Step%20Appendix.htm"><font color=silver><span style='color:silver'>Appendix</span></font></a><o:p></o:p></span></font></p> </td> <td width="16%" valign=top style='width:16.66%;padding:.75pt .75pt .75pt .75pt'> <p align=center style='text-align:center'><font size=3 color=silver face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; color:silver;mso-ansi-language:EN-US'><a href="Next%20Step%20Dead%20Horse%20Strategies.htm"><font color=silver><span style='color:silver'>Dead Horse Strategies</span></font></a><o:p></o:p></span></font></p> </td> </tr> </table> </div> <p class=MsoNormal align=center style='text-align:center'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family: "Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p class=MsoNormal align=center style='text-align:center'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family: "Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <div align=center> <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=687 style='width:515.0pt;mso-cellspacing:0cm;mso-yfti-tbllook:1184;mso-padding-alt: 0cm 5.4pt 0cm 5.4pt'> <tr style='mso-yfti-irow:0;mso-yfti-firstrow:yes;mso-yfti-lastrow:yes'> <td valign=top style='padding:.75pt .75pt .75pt .75pt'> <p><b style='mso-bidi-font-weight:normal'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; mso-ansi-language:EN-US;font-weight:bold;mso-bidi-font-weight:normal'>This Is A Local Labor Intensive</span></font></b><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'> <b style='mso-bidi-font-weight:normal'><span style='font-weight:bold;mso-bidi-font-weight: normal'>Manufacturer</span></b> with a solution right out of The Goal.<span style='mso-spacerun:yes'>  </span>The firm had undergone very significant growth both domestically and in a substantial export market but was constrained and couldn t meet current orders.<span style='mso-spacerun:yes'>  </span>In fact the theme was;  you don t understand, we have <i style='mso-bidi-font-style:normal'><span style='font-style:italic;mso-bidi-font-style: normal'>no</span></i> additional capacity! <span style='mso-spacerun:yes'>  </span><o:p></o:p></span></font></p> <p><!--[if gte vml 1]><v:shapetype id="_x0000_t75" coordsize="21600,21600" o:spt="75" o:preferrelative="t" path="m@4@5l@4@11@9@11@9@5xe" filled="f" stroked="f"> <v:stroke joinstyle="miter"/> <v:formulas> <v:f eqn="if lineDrawn pixelLineWidth 0"/> <v:f eqn="sum @0 1 0"/> <v:f eqn="sum 0 0 @1"/> <v:f eqn="prod @2 1 2"/> <v:f eqn="prod @3 21600 pixelWidth"/> <v:f eqn="prod @3 21600 pixelHeight"/> <v:f eqn="sum @0 0 1"/> <v:f eqn="prod @6 1 2"/> <v:f eqn="prod @7 21600 pixelWidth"/> <v:f eqn="sum @8 21600 0"/> <v:f eqn="prod @7 21600 pixelHeight"/> <v:f eqn="sum @10 21600 0"/> </v:formulas> <v:path o:extrusionok="f" gradientshapeok="t" o:connecttype="rect"/> <o:lock v:ext="edit" aspectratio="t"/> </v:shapetype><v:shape id="Picture_x0020_1" o:spid="_x0000_s1036" type="#_x0000_t75" style='position:absolute;margin-left:0;margin-top:0;width:295.65pt;height:197.3pt; z-index:-251658240;visibility:visible;mso-wrap-style:square; mso-width-percent:0;mso-height-percent:0;mso-wrap-distance-left:9pt; mso-wrap-distance-top:0;mso-wrap-distance-right:9pt; mso-wrap-distance-bottom:0;mso-position-horizontal:left; mso-position-horizontal-relative:text;mso-position-vertical:absolute; mso-position-vertical-relative:text;mso-width-percent:0; mso-height-percent:0;mso-width-relative:page;mso-height-relative:page'> <v:imagedata src="Next%20Step%20War%20Stories_files/image002.jpg" o:title=""/> <w:wrap type="tight"/> </v:shape><![endif]--><![if !vml]><img width=394 height=263 src="Next%20Step%20War%20Stories_files/image003.jpg" align=left hspace=12 v:shapes="Picture_x0020_1"><![endif]><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>The initial constraint was in the polish shop.<span style='mso-spacerun:yes'>  </span>Using very limited training materials  just the dice game and The Goal  and some improvements in operations, we were able to increase output by some 25% and reduce the work-in-process by half in just 12 weeks on constant head-count.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Of course the constraint moved.<span style='mso-spacerun:yes'>  </span>In fact, it moved right around the factory in several stages, until it came back to the step before the polish shop, which was assembly, and that is where we choose to keep it from then on.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Output continued to rise to meet the market  a 42% increase by the 8<sup>th</sup> month  all on constant head-count.<span style='mso-spacerun:yes'>  </span>Many types of product were reduced in batch-size by a ½ to a ¼ to an [!.<span style='mso-spacerun:yes'>  </span>Frequency was increased proportionally.<span style='mso-spacerun:yes'>  </span>Stock-turns for major lines grew to several times per week.<span style='mso-spacerun:yes'>  </span>When you can ship next day ex-stock your market grows faster than your competitors as retailers seek to replace other companies goods that they have sold but can t yet replace.<span style='mso-spacerun:yes'>  </span>Replacing other firms floor stock is a decisive competitive advantage.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><b style='mso-bidi-font-weight:normal'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; mso-ansi-language:EN-US;font-weight:bold;mso-bidi-font-weight:normal'>Let s Restate This</span></font></b><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>.<span style='mso-spacerun:yes'>  </span>Because many people miss the point  or never see it  a 42% increase in output = a 42% increase in sales.<span style='mso-spacerun:yes'>  </span>This is because we only replaced what was sold and we could sell much more.<span style='mso-spacerun:yes'>  </span>But how much of this is additional profit?<span style='mso-spacerun:yes'>  </span>Well the answer is about 66% of it.<span style='mso-spacerun:yes'>  </span>The remainder, 33%, went to pay for raw materials and other 1:1 variable costs.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>66% of a 42% increase in sales = 28% of initial turnover is now additional clear operating profit.<span style='mso-spacerun:yes'>  </span>Slot in your own turnover and ask yourself whether 28% of that as additional operating profit would be nice or not?<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Initial operating profit was about 33% of turnover.<span style='mso-spacerun:yes'>  </span>So another 28% equates to something like; (33+28)/33 = 1.85  almost double  the original operating profit.<span style='mso-spacerun:yes'>  </span>That is a very sound and sustainable position to be in, in a very short period of time.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Assign let s say a generous initial net profit of 10% and we have (10+28)/10 = 3.8  almost quadruple  the initial state.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>This is not unusual.<span style='mso-spacerun:yes'>  </span>This is what Theory of Constraints is so good at.<span style='mso-spacerun:yes'>  </span>Undoubtedly most of the new cash is reinvested into the business, and why wouldn t you do that?<span style='mso-spacerun:yes'>  </span>You can retire old debt faster; you can make new capital expenditures, you can make new discretionary expenditures in marketing, development, and so-forth that were previously beyond reach.<span style='mso-spacerun:yes'>  </span>You can operate with a great deal more confidence.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Remember, this is not a one-off, such as clearing out trapped work-in-process; this is a continuous and sustained improvement in productive output and cash inflow, not for the duration of the improvement, but for the next year, and the year after that, and the year after that too.<span style='mso-spacerun:yes'>  </span>It has important ramifications not just for cashflow but also the overall valuation of the business.<span style='mso-spacerun:yes'>  </span>People who own or invest in such businesses will be most mindful of this. <o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Such an increase, with the exact same people, with the exact same equipment, is the consequence of applying some significant and codified know-how rather than relying on old accepted practice.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><b style='mso-bidi-font-weight:normal'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; mso-ansi-language:EN-US;font-weight:bold;mso-bidi-font-weight:normal'>A Different Scale And A Different Country</span></font></b><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>.<span style='mso-spacerun:yes'>  </span>First a personal note.<span style='mso-spacerun:yes'>  </span>I lived and worked in Japan for a total of 4 and a half years, off and on. Three of those were; first in the city of Okayama at the <span class=SpellE>Hiruzen</span> Research Institute, Okayama University of Science, and second in Tsukuba Science City at the Geological Survey of Japan while doing post-doctoral research.<span style='mso-spacerun:yes'>  </span>These were, in a way, cultural enablers to what follows.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>And what follows is in the heartland of Toyota, Aichi Prefecture, near Nagoya, and indeed at a major supplier of Toyota and Honda. The quality of the output is world-class, but the firm had still consistently  declined the invitations of Toyota to  help over its production planning for many years.<span style='mso-spacerun:yes'>  </span>This company is  as are the vast majority in Japan  a batch producer.<span style='mso-spacerun:yes'>  </span>And batch producers know how their operations are fundamentally different from the final stage assembly line for which Toyota is justifiably world-famous.<span style='mso-spacerun:yes'>  </span>These facilities had reached the point where they felt that they had no additional capacity to meet rising demand.<span style='mso-spacerun:yes'>  </span><o:p></o:p></span></font></p> <p><!--[if gte vml 1]><v:shape id="Picture_x0020_5" o:spid="_x0000_s1035" type="#_x0000_t75" alt="Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: C:\Users\Dr Kelvyn Youngman\Desktop\11 Jun - No red lights.jpg" style='position:absolute;margin-left:0;margin-top:-.35pt;width:296.75pt; height:222.65pt;z-index:251659264;visibility:visible;mso-wrap-style:square; mso-width-percent:0;mso-height-percent:0;mso-wrap-distance-left:9pt; mso-wrap-distance-top:0;mso-wrap-distance-right:9pt; mso-wrap-distance-bottom:0;mso-position-horizontal:absolute; mso-position-horizontal-relative:text;mso-position-vertical:absolute; mso-position-vertical-relative:text;mso-width-percent:0; mso-height-percent:0;mso-width-relative:page;mso-height-relative:page'> <v:imagedata src="Next%20Step%20War%20Stories_files/image004.jpg" o:title="11 Jun - No red lights"/> <w:wrap type="square"/> </v:shape><![endif]--><![if !vml]><img width=396 height=297 src="Next%20Step%20War%20Stories_files/image005.jpg" align=left hspace=12 alt="Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: C:\Users\Dr Kelvyn Youngman\Desktop\11 Jun - No red lights.jpg" v:shapes="Picture_x0020_5"><![endif]><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>In this particular plant, we were able to use the production simulator with all management from the factory manager to foreman.<span style='mso-spacerun:yes'>  </span>Having a professional planning function also provided a challenge at first and a substantial benefit later on.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>We increased output by 18% in 12 weeks on the major throughput lines in this very substantial operation.<span style='mso-spacerun:yes'>  </span>In<span style='mso-spacerun:yes'>  </span>addition we were also able to very significantly reduce both the work-in-process and the lead-time.<span style='mso-spacerun:yes'>  </span>When you focus on the constraint, you can improve the whole plant very quickly.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>This photo was originally used in a corporation-wide meeting day of plant foremen and was entitled  No Red Lights. <span style='mso-spacerun:yes'>  </span>This particular machining stage had been identified as the constraint to overall production and the greatest single challenge was to synchronize setups in order to produce a smooth flow.<span style='mso-spacerun:yes'>  </span>One set-up operator cannot be in more than one place at one time as you know, and the other places while waiting lose significant production, therefore to plan a set-up sequence for one place at one time has tremendous benefits in overall output for the whole plant.<span style='mso-spacerun:yes'>  </span>It would not seem believable given the number of overall stages in the process, but remember everywhere else has additional capacity.<span style='mso-spacerun:yes'>  </span>It a salutary lesson for people that a small change in a small part of the plant can have such tremendous benefit overall.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>And because this aspect of constraint planning is so important and so underrated overall, here is a photo of the planning boards for the constraint machines that we saw above.<o:p></o:p></span></font></p> <p><!--[if gte vml 1]><v:shape id="Picture_x0020_3" o:spid="_x0000_s1034" type="#_x0000_t75" style='position:absolute;margin-left:0;margin-top:-.35pt; width:294.75pt;height:214.05pt;z-index:251660288;visibility:visible; mso-wrap-style:square;mso-width-percent:0;mso-height-percent:0; mso-wrap-distance-left:9pt;mso-wrap-distance-top:0; mso-wrap-distance-right:9pt;mso-wrap-distance-bottom:0; mso-position-horizontal:absolute;mso-position-horizontal-relative:text; mso-position-vertical:absolute;mso-position-vertical-relative:text; mso-width-percent:0;mso-height-percent:0;mso-width-relative:page; mso-height-relative:page'> <v:imagedata src="Next%20Step%20War%20Stories_files/image006.jpg" o:title=""/> <w:wrap type="square"/> </v:shape><![endif]--><![if !vml]><img width=393 height=285 src="Next%20Step%20War%20Stories_files/image007.jpg" align=left hspace=12 v:shapes="Picture_x0020_3"><![endif]><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Although this board is in its  infancy here, it later became significantly more visual with photographs of the individual set-up personnel, as well as the machine and job and time as shown here.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>The professional planner is taking, the local information from his master schedule and making it visible.<span style='mso-spacerun:yes'>  </span>The constraint is the only place where we had such a time and sequence schedule.<span style='mso-spacerun:yes'>  </span>The remainder of the plant operated on fist-in-first-out.<span style='mso-spacerun:yes'>  </span>Always make things visual.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Although batch sizes had been considerably reduced over historic values, we were still able to increase output with increased set-ups on the constraining resource.<span style='mso-spacerun:yes'>  </span>The foreman also  liberated one additional constraint machine by taking it out of a robot line and operating it manually.<span style='mso-spacerun:yes'>  </span>People are very resourceful when they have focus.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Now, of course, this would not happen in your company, but some set-ups required a laptop to talk to the CNC machine tools, however, the PC would often be somewhere else, and not available. That did change too.<span style='mso-spacerun:yes'>  </span>Constraints bring about unbelievable focus to the situation.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>In another part of this same plant we had a small sub-plant which dealt with micro tool-bits.<o:p></o:p></span></font></p> <p><!--[if gte vml 1]><v:shape id="Picture_x0020_7" o:spid="_x0000_s1033" type="#_x0000_t75" alt="Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: C:\Users\Dr Kelvyn Youngman\Desktop\Microtools cropped.PNG" style='position:absolute;margin-left:0;margin-top:-.35pt;width:297.05pt; height:209.75pt;z-index:251661312;visibility:visible;mso-wrap-style:square; mso-width-percent:0;mso-height-percent:0;mso-wrap-distance-left:9pt; mso-wrap-distance-top:0;mso-wrap-distance-right:9pt; mso-wrap-distance-bottom:0;mso-position-horizontal:left; mso-position-horizontal-relative:text;mso-position-vertical:absolute; mso-position-vertical-relative:text;mso-width-percent:0; mso-height-percent:0;mso-width-relative:page;mso-height-relative:page'> <v:imagedata src="Next%20Step%20War%20Stories_files/image008.png" o:title="Microtools cropped"/> <w:wrap type="square" side="right"/> </v:shape><![endif]--><![if !vml]><img width=396 height=280 src="Next%20Step%20War%20Stories_files/image009.png" align=left hspace=12 alt="Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: C:\Users\Dr Kelvyn Youngman\Desktop\Microtools cropped.PNG" v:shapes="Picture_x0020_7"><![endif]><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>This is just to reinforce that automation is not always automatic.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>If you look closely at the andon lights you will see that the machines are almost in unison  orange and all are requiring attention of some sort at the same time.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Despite the sophistication of the machines, and the phenomenal accuracy of the whole process, there were intractable problems in the planning of this particular work flow.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Even when the work-in-process is physically minute, you need to know what it represents in terms of time.<span style='mso-spacerun:yes'>  </span>Enough said.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><b style='mso-bidi-font-weight:normal'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; mso-ansi-language:EN-US;font-weight:bold;mso-bidi-font-weight:normal'>This Is A Different Plant In The Same Corporation</span></font></b><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>.<span style='mso-spacerun:yes'>  </span>I climbed an abrasion cleaning tower to get this shot.<span style='mso-spacerun:yes'>  </span>You can see a some of the work-in-process in the foreground of this shot.<span style='mso-spacerun:yes'>  </span>There was literally  weeks worth of work here in the initial stages.<o:p></o:p></span></font></p> <p><!--[if gte vml 1]><v:shape id="Picture_x0020_2" o:spid="_x0000_s1032" type="#_x0000_t75" style='position:absolute;margin-left:0;margin-top:-.35pt; width:311.8pt;height:233.3pt;z-index:-251654144;visibility:visible; mso-wrap-style:square;mso-width-percent:0;mso-height-percent:0; mso-wrap-distance-left:9pt;mso-wrap-distance-top:0; mso-wrap-distance-right:9pt;mso-wrap-distance-bottom:0; mso-position-horizontal:absolute;mso-position-horizontal-relative:text; mso-position-vertical:absolute;mso-position-vertical-relative:text; mso-width-percent:0;mso-height-percent:0;mso-width-relative:page; mso-height-relative:page'> <v:imagedata src="Next%20Step%20War%20Stories_files/image010.jpg" o:title=""/> <w:wrap type="square" side="left"/> </v:shape><![endif]--><![if !vml]><img width=416 height=311 src="Next%20Step%20War%20Stories_files/image011.jpg" align=right hspace=12 v:shapes="Picture_x0020_2"><![endif]><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>In this particular plant we once again took the full management through the production simulators. The planning manager also took to using the Thinking Process tools with some proficiency.<span style='mso-spacerun:yes'>  </span>Personally I probably drew more clouds on the whiteboards within this plant than I have anywhere else  but that is what clouds are for, they are tools of immediate engagement for use on the fly and for use on the floor.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>In this plant we achieved what very few batch producers in Japan have been able to do, we reduced a very significant work-in-process back-log by T! in just on 12 weeks.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>This work was well reported in the national Japanese business press and also national television.<span style='mso-spacerun:yes'>  </span>It was a phenomenal result when you understand the challenge to people s sense of security in seeing the  mountains of comfortable work disappear.<span style='mso-spacerun:yes'>  </span>It is also a tribute to the plant manager and all of the staff that we could achieve this.<span style='mso-spacerun:yes'>  </span>Work on the floor decrease from some 600,000 pieces to just on 200,000 pieces over this period.<o:p></o:p></span></font></p> <p><!--[if gte vml 1]><v:shape id="Picture_x0020_4" o:spid="_x0000_s1031" type="#_x0000_t75" style='position:absolute;margin-left:0;margin-top:-.35pt; width:297.65pt;height:396.85pt;z-index:251663360;visibility:visible; mso-wrap-style:square;mso-width-percent:0;mso-height-percent:0; mso-wrap-distance-left:9pt;mso-wrap-distance-top:0; mso-wrap-distance-right:9pt;mso-wrap-distance-bottom:0; mso-position-horizontal:absolute;mso-position-horizontal-relative:right-margin-area; mso-position-vertical:absolute;mso-position-vertical-relative:text; mso-width-percent:0;mso-height-percent:0;mso-width-relative:page; mso-height-relative:page'> <v:imagedata src="Next%20Step%20War%20Stories_files/image012.jpg" o:title=""/> <w:wrap type="square" side="right" anchorx="margin"/> </v:shape><![endif]--><![if !vml]><img width=397 height=529 src="Next%20Step%20War%20Stories_files/image013.jpg" align=left hspace=12 v:shapes="Picture_x0020_4"><![endif]><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Now, here is a reality check.<span style='mso-spacerun:yes'>  </span>This is not one of the constraint areas; this is part of a non-constrained line  and that is most of the plant after all.<span style='mso-spacerun:yes'>  </span>I wanted to show it to you to reinforce that there are people everywhere.<span style='mso-spacerun:yes'>  </span>Also the machines here are much older and much more manual than you might expect, set-ups are therefore much more intensive on these types of lines.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>If ever, you are going to get a flow in a plant such as this, you must decrease the size of your process batches.<span style='mso-spacerun:yes'>  </span>Generally, this is not somewhere where you can make use of smaller transfer batches, there are things that  bulk them up again, for example furnace time during heat treat.<span style='mso-spacerun:yes'>  </span>So smaller process batches are the only way to get better flow.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Smaller process batches, as any operator will tell you, carry a penalty, they incur more setups.<span style='mso-spacerun:yes'>  </span>In all non-constrained areas, however, there will be considerable time available; the trick is to keep building that spare time into the system.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Building spare time into the system, ahead of the need, is part of the continued subordination of the non-constraints to the constraint.<span style='mso-spacerun:yes'>  </span>It is part of the whole process and it has to be actively managed.<span style='mso-spacerun:yes'>  </span>Too often people fail to understand this.<span style='mso-spacerun:yes'>  </span>These areas are prime candidates for kaizen activities.<o:p></o:p></span></font></p> <p style='text-align:justify'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif;mso-ansi-language: EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><b style='mso-bidi-font-weight:normal'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; mso-ansi-language:EN-US;font-weight:bold;mso-bidi-font-weight:normal'>Constraint Schedule Boards</span></font></b><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>.<span style='mso-spacerun:yes'>  </span>One last photograph from this plant.<span style='mso-spacerun:yes'>  </span>The plant basically had 4 lines running within it, based mostly on the physical size of the work being produced; small, medium, large, etc.,<span style='mso-spacerun:yes'>  </span>That means that we actively managed 4 constraint areas, one for each line.<span style='mso-spacerun:yes'>  </span>This  spot is in front of the foreman s station of one such area.<span style='mso-spacerun:yes'>  </span>It contains two boards that have the time and sequence for each machine and for all of the immediate work in the constraint area.<o:p></o:p></span></font></p> <p><!--[if gte vml 1]><v:shape id="Picture_x0020_9" o:spid="_x0000_s1030" type="#_x0000_t75" style='position:absolute;margin-left:11.35pt; margin-top:0;width:295.65pt;height:221.65pt;z-index:251670528;visibility:visible; mso-wrap-style:square;mso-width-percent:0;mso-height-percent:0; mso-wrap-distance-left:9pt;mso-wrap-distance-top:0; mso-wrap-distance-right:9pt;mso-wrap-distance-bottom:0; mso-position-horizontal:absolute;mso-position-horizontal-relative:text; mso-position-vertical:absolute;mso-position-vertical-relative:text; mso-width-percent:0;mso-height-percent:0;mso-width-relative:page; mso-height-relative:page'> <v:imagedata src="Next%20Step%20War%20Stories_files/image014.jpg" o:title=""/> <w:wrap type="square" side="right"/> </v:shape><![endif]--><![if !vml]><img width=394 height=296 src="Next%20Step%20War%20Stories_files/image015.jpg" align=left hspace=12 v:shapes="Picture_x0020_9"><![endif]><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Here we can see the plant manager (arms folded) as the section manager for the area and the planner for the line discuss work for the area.<span style='mso-spacerun:yes'>  </span>The other participants are the supervisors of all of the other sections of the plant.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>This particular board took on a  visual life of its own with many <span class=SpellE>personalizations</span>  photos, scripts etc.<span style='mso-spacerun:yes'>  </span>Most importantly it recorded when we expected to start and finish on a particular machine in that section and when we actually started and finished.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>In all of the non-constrained areas, there were also work boards  but they contained only the sequence of the work based upon first-in-first-out principles.<span style='mso-spacerun:yes'>  </span>I cannot reiterate too much the benefit of going to the actual place, talking to the actual people and seeing the actual problem.<span style='mso-spacerun:yes'>  </span>And having been seen to have done so.<span style='mso-spacerun:yes'>  </span>Let s change countries, scale, and type of business once again.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><!--[if gte vml 1]><v:shape id="_x0000_s1029" type="#_x0000_t75" style='position:absolute; margin-left:186.3pt;margin-top:1075.5pt;width:237.5pt;height:337pt; z-index:251671552;visibility:visible;mso-wrap-style:square; mso-width-percent:0;mso-height-percent:0;mso-wrap-distance-left:9pt; mso-wrap-distance-top:0;mso-wrap-distance-right:9pt; mso-wrap-distance-bottom:0;mso-position-horizontal:right; mso-position-horizontal-relative:text;mso-position-vertical:absolute; mso-position-vertical-relative:margin;mso-width-percent:0; mso-height-percent:0;mso-width-relative:margin;mso-height-relative:margin' o:allowoverlap="f"> <v:imagedata src="Next%20Step%20War%20Stories_files/image016.png" o:title=""/> <w:wrap type="square" side="left" anchory="margin"/> </v:shape><![endif]--><![if !vml]><img width=317 height=449 src="Next%20Step%20War%20Stories_files/image017.png" align=right hspace=12 v:shapes="_x0000_s1029"><![endif]><b style='mso-bidi-font-weight:normal'><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language: EN-US;font-weight:bold;mso-bidi-font-weight:normal'>Critical Chain Project Management.</span></font></b><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><span style='mso-spacerun:yes'>  </span>Manufacturing has  short touch time, engineering projects have  long touch time. <span style='mso-spacerun:yes'>  </span>Nevertheless many of the fundamentals are the same, usually going under different names.<span style='mso-spacerun:yes'>  </span>Multi-tasking is just the same as having multiple batches on the floor in manufacturing and the consequence is the same.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>This is a small light engineering workshop that designed and fabricated made-to-order road trailers for trucks (U.S. tractor).<span style='mso-spacerun:yes'>  </span>They also ran a repair shop and the two interacted in rather unhelpful ways.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Previous purchasers of trailer units who had mishaps that took the trailer off the road, and thus were non-revenue earning, and expected the shop to do the repair with utmost haste.<span style='mso-spacerun:yes'>  </span>The new trailers in production therefore slipped back.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Make-to-order and already long lead times encouraged purchasers to request changes to detail as the job proceeded.<span style='mso-spacerun:yes'>  </span>Again the new trailers in production slipped back.<b style='mso-bidi-font-weight:normal'><span style='font-weight:bold;mso-bidi-font-weight:normal'><o:p></o:p></span></b></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>The net effect was that this business was losing money.<span style='mso-spacerun:yes'>  </span>And while creditors will only ever foreclose as a matter of last resort, that is what happened here.<span style='mso-spacerun:yes'>  </span>We arrived one day, the receivers were there, there was nothing more that we could do.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>The real value was in fabrication, the urgency was in repair, but the shop downtime in repair was never actively managed for via buffering.<span style='mso-spacerun:yes'>  </span>As I was once told, and have never forgotten; schedule according to reality.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><b style='mso-bidi-font-weight:normal'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; mso-ansi-language:EN-US;font-weight:bold;mso-bidi-font-weight:normal'>Throughput Accounting/Receivership</span></font></b><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>.<span style='mso-spacerun:yes'>  </span>Standard cost accounting assumes independence, throughput accounting assumes interdependence; they are profoundly different.<span style='mso-spacerun:yes'>  </span>Professional manufacturing cost accountants know this and are pragmatists at heart.<span style='mso-spacerun:yes'>  </span>Many others do not and therein lies the problem.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>You can use throughput accounting in <span class=SpellE>a</span> interdependent process to drive profitability that standard cost accounting methods cannot replicate.<span style='mso-spacerun:yes'>  </span>Conversely and sadly you can use standard cost accounting methods in interdependent process to drive non-profitability and not even know it.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>An example is a firm not too dissimilar to the one at the top of the page, albeit a little smaller, a little less professional.<span style='mso-spacerun:yes'>  </span>They had made a decision to change some of their sales  lines and were building stock for this.<span style='mso-spacerun:yes'>  </span>The sales guy  probably as a consequence of his own reductions in bonus  saw some danger signals.<span style='mso-spacerun:yes'>  </span>I worked through 6 months of accounts with the owner and showed him that he was failing to generate operating profit.<span style='mso-spacerun:yes'>  </span>I offered to go with him to see his banker (banks understand cashflow) but he would not hear of it, his accounts guy had been with him for years.<span style='mso-spacerun:yes'>  </span>Sometime later I learnt that they had gone into receivership.<span style='mso-spacerun:yes'>  </span>Sometimes there is nothing more that you can do.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><b style='mso-bidi-font-weight:normal'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; mso-ansi-language:EN-US;font-weight:bold;mso-bidi-font-weight:normal'>Sawmilling</span></font></b><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language: EN-US'> is one of those industries that  unlike manufacturing  cannot know the grade or volume of their output until after they have milled, or mined, or harvested, or processed, or whatever.<span style='mso-spacerun:yes'>  </span>This was a large regional pine mill taking saw logs from plantation forests.<o:p></o:p></span></font></p> <p><!--[if gte vml 1]><v:shape id="Picture_x0020_10" o:spid="_x0000_s1028" type="#_x0000_t75" alt="Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Sawmill" style='position:absolute;margin-left:238.5pt;margin-top:85.8pt;width:289.7pt; height:204.65pt;z-index:251665408;visibility:visible;mso-wrap-style:square; mso-width-percent:0;mso-height-percent:0;mso-wrap-distance-left:9pt; mso-wrap-distance-top:0;mso-wrap-distance-right:9pt; mso-wrap-distance-bottom:0;mso-position-horizontal:right; mso-position-horizontal-relative:text;mso-position-vertical:absolute; mso-position-vertical-relative:text;mso-width-percent:0; mso-height-percent:0;mso-width-relative:page;mso-height-relative:page'> <v:imagedata src="Next%20Step%20War%20Stories_files/image018.jpg" o:title=" Sawmill"/> <w:wrap type="square" side="left"/> <w:anchorlock/> </v:shape><![endif]--><![if !vml]><img width=386 height=273 src="Next%20Step%20War%20Stories_files/image019.jpg" align=right hspace=12 alt="Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Sawmill" v:shapes="Picture_x0020_10"><![endif]><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>The mode of operation in these mills is cut-to-grade, that is the head-rig operator makes decisions to optimize the recovery of the best grade of timber from each saw log.<span style='mso-spacerun:yes'>  </span>What you can see here however is a colleague with printouts of end-stage stock buffers, many of which are  in the red, or worse  empty.<span style='mso-spacerun:yes'>  </span>We changed the operation from cut-to-grade to cut-to-replace using replenishment buffers that took into account the often considerable time required for various post-milling machining, treating, and drying operations.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>The mill at the time that we were involved had significant cash flow issues.<span style='mso-spacerun:yes'>  </span>If you are cutting for grade recovery, you can have the best grade recovery in the world and if your customers are not buying that grade then basically you have sunk a huge amount of cash in a pile of timber that you cannot sell.<span style='mso-spacerun:yes'>  </span>Moreover you will not be cutting grades that customers are buying or indeed are waiting to buy.<span style='mso-spacerun:yes'>  </span>The buffers, rather than a forecast, tell you exactly what is going on and what grade needs to be cut now in order to replenish the supply in good time.<span style='mso-spacerun:yes'>  </span>Few people understand this.<span style='mso-spacerun:yes'>  </span>Sometimes the most expensive products will yield less cash for the time and effort involved than cost accounting would suggest.<span style='mso-spacerun:yes'>  </span>In essence you are not adding value you are simply adding cost.<span style='mso-spacerun:yes'>  </span>Again very important when you are cash constrained.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>This is just one place where counter-intuitive and throughput-based decisions increases cashflow into the business.<span style='mso-spacerun:yes'>  </span>Part of the personal gratification was that we got to put in place a workable solution in an industry that we had always been told  we couldn t understand. <o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><b style='mso-bidi-font-weight:normal'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; mso-ansi-language:EN-US;font-weight:bold;mso-bidi-font-weight:normal'>Problem Solving For A Central Government Agency</span></font></b><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>.<span style='mso-spacerun:yes'>  </span>Something completely different; an agency of a government social service department used Bill Dettmer s Strategic Navigation to produce post-it notes of symptomatic issues going up 3 walls of one of their offices.<span style='mso-spacerun:yes'>  </span>I was asked to bring some structure to the issue.<o:p></o:p></span></font></p> <p><!--[if gte vml 1]><v:shape id="Picture_x0020_14" o:spid="_x0000_s1027" type="#_x0000_t75" style='position:absolute;margin-left:245.8pt; margin-top:-.35pt;width:297pt;height:285pt;z-index:251666432;visibility:visible; mso-wrap-style:square;mso-width-percent:0;mso-height-percent:0; mso-wrap-distance-left:9pt;mso-wrap-distance-top:0; mso-wrap-distance-right:9pt;mso-wrap-distance-bottom:0; mso-position-horizontal:right;mso-position-horizontal-relative:text; mso-position-vertical:absolute;mso-position-vertical-relative:text; mso-width-percent:0;mso-height-percent:0;mso-width-relative:page; mso-height-relative:page'> <v:imagedata src="Next%20Step%20War%20Stories_files/image020.png" o:title=""/> <w:wrap type="square"/> </v:shape><![endif]--><![if !vml]><img width=396 height=380 src="Next%20Step%20War%20Stories_files/image020.png" align=right hspace=12 v:shapes="Picture_x0020_14"><![endif]><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Although I prefer to employ the Thinking Process as a tactical toolset, this was more of a facilitation of a broader strategic issue.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>The agency felt that it had an opportunity to move matters forward for the people whom it served.<span style='mso-spacerun:yes'>  </span>The services that these people received were fragmented across a number of service providers both within government and within the wider community.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>From the large number of symptoms several key  threads emerged which were developed into individual current reality trees.<span style='mso-spacerun:yes'>  </span>All of these originated from a single common dilemma.<span style='mso-spacerun:yes'>  </span>That dilemma was the core conflict of the system.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>The end result, of which you can see just a part, was used to communicate the dilemma and its consequences to the Minister concerned.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><b style='mso-bidi-font-weight:normal'><font size=3 color=white face=Arial><span lang=EN-US style='font-size:12.0pt;font-family:"Arial",sans-serif; mso-ansi-language:EN-US;font-weight:bold;mso-bidi-font-weight:normal'>Healthcare,</span></font></b><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language: EN-US'> a large tertiary regional hospital; 300 senior medical officers, 500 beds, 20 acres of floor space, and 80,000 in-patients per annum.<o:p></o:p></span></font></p> <p><!--[if gte vml 1]><v:shape id="_x0000_s1026" type="#_x0000_t75" alt="Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Waikato Hospital" style='position:absolute;margin-left:0;margin-top:-.35pt;width:299.35pt; height:216.3pt;z-index:251667456;visibility:visible;mso-wrap-style:square; mso-width-percent:0;mso-height-percent:0;mso-wrap-distance-left:9pt; mso-wrap-distance-top:0;mso-wrap-distance-right:9pt; mso-wrap-distance-bottom:0;mso-position-horizontal:absolute; mso-position-horizontal-relative:text;mso-position-vertical:absolute; mso-position-vertical-relative:text;mso-width-percent:0; mso-height-percent:0;mso-width-relative:page;mso-height-relative:page'> <v:imagedata src="Next%20Step%20War%20Stories_files/image021.jpg" o:title=" Waikato Hospital"/> <w:wrap type="square" side="right"/> </v:shape><![endif]--><![if !vml]><img width=399 height=288 src="Next%20Step%20War%20Stories_files/image022.jpg" align=left hspace=12 alt="Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Description: Waikato Hospital" v:shapes="_x0000_s1026"><![endif]><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>There are not many people who can claim to have systematically brought forward people s birth times, but that is what we achieved here in obstetrics and gynecology for planned routine cesarean deliveries.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>In the emergency department we introduced a 3 equal-zoned buffer board to implementation a national 6 hour target for assessment &amp; admission or treatment &amp; discharge. We also introduced a number of counter-intuitive measures to focus staff attention on improving patient flow through the department.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Also involved in </span></font><font face=Arial><span lang=EN style='font-family:"Arial",sans-serif; mso-ansi-language:EN'>acute &amp; elective theatre productivity and start-times, sterile supply, hospital replenishment supply chain, integrated operations, and numerous smaller interactions.<span style='mso-spacerun:yes'>  </span>The hospital knew how much a 22 cent blood tube cost us, but not how much a 45 minute late-start in a scheduled theatre might cost.<span style='mso-spacerun:yes'>  </span>In fact it still doesn t know.<span style='mso-spacerun:yes'>  </span>Theatres are a  natural for bottlenecks, and the number of late-starts and incomplete kits was, and remains, chronic.<span style='mso-spacerun:yes'>  </span>Essentially these are issues of poor or non-existent subordination, it is not that the capacity doesn t exist, it does, but it is wasted.<span style='mso-spacerun:yes'>  </span>Likewise, getting people into hospital is relatively well co-ordinated; getting them out again is not.<span style='mso-spacerun:yes'>  </span>Enough said. </span></font><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language: EN-US'><o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Throughout this health system, not just in this hospital, acuity is used as a proxy for urgency.<span style='mso-spacerun:yes'>  </span>In all of the diagnostic suites, interventional suites, and also elective surgery, a static  schedule was regularly updated (every several hours, or daily, or weekly as the case may be) for new cases of higher acuity.<span style='mso-spacerun:yes'>  </span>The consequence is that even as less acute cases matured dynamically, they were still pushed down the queue rather than remaining near the top.<span style='mso-spacerun:yes'>  </span>If you like the buffer status of the patient has no relevance when it should be of the most relevance.<span style='mso-spacerun:yes'>  </span>The discipline to do what is most important is always subjugated to what is deemed to be the most urgent. <o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Despite the apparent complexity, a large hospital such as this well knows from history the likely demand for each hour of the day, day of the week, and week of the year.<span style='mso-spacerun:yes'>  </span>The trick is to know where to focus and how to subordinate.<span style='mso-spacerun:yes'>  </span>Healthcare is still learning.<span style='mso-spacerun:yes'>  </span>As in other types of services there is abundant capacity but more often than not that capacity is destroyed.<span style='mso-spacerun:yes'>  </span>A profound lack of understanding of interdependency and of variability conspires to convince the participants that indeed there is no spare capacity.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>Five acres of world-class Japanese factory filled to the gills with work-in-process and unable to keep up with demand might look like an intractable problem, it is not.<span style='mso-spacerun:yes'>  </span><o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>One of the largest emergency departments in the country with patients waiting on beds down the corridors might seem like an intractable problem, it is not.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>A sawmill in a recession with saw-logs being driven past the gate for export overseas might look like an intractable problem, it is not.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>The way we get ourselves into these problems is because of our way of thinking about them, and the way that we get ourselves out of these problems is a different way of thinking about them.<span style='mso-spacerun:yes'>  </span>And with that comes a different sort of skill-set and I hope that these stories will help you to understand that.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'>You know how to find me  the contacts page.<o:p></o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><font size=3 color=white face=Arial><span lang=EN-US style='font-size: 12.0pt;font-family:"Arial",sans-serif;mso-ansi-language:EN-US'><o:p>&nbsp;</o:p></span></font></p> <p><font size=1 color=white face=Arial><span lang=EN-US style='font-size: 8.0pt;font-family:"Arial",sans-serif;mso-bidi-font-family:"Times New Roman"; mso-ansi-language:EN-US'>This Webpage Copyright © 2013 by Dr K. J. Youngman</span></font><font face=Arial><span lang=EN-US style='font-family:"Arial",sans-serif;mso-ansi-language: EN-US'><o:p></o:p></span></font></p> </td> </tr> </table> </div> <div><!-- Start of StatCounter Code --> <p class=MsoNormal align=center style='text-align:center'><font size=3 color=black face="Times New Roman"><span style='font-size:12.0pt;color:windowtext'><script type="text/javascript"> sc_project=571783; sc_invisible=1; sc_partition=4; sc_security="f9e1f32d"; </script><script type="text/javascript" src="http://www.statcounter.com/counter/counter.js"> </script></span></font><font color=black><span lang=EN-GB style='color:windowtext; mso-ansi-language:EN-GB'><o:p>&nbsp;</o:p></span></font></p> <noscript> <p class=MsoNormal align=center style='text-align:center'><font size=3 color=black face="Times New Roman"><span lang=EN-GB style='font-size:12.0pt; color:windowtext;mso-ansi-language:EN-GB'><o:p>&nbsp;</o:p></span></font></p> </div> </div> </noscript><!-- End of StatCounter Code --> </body> </html>