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Hello! Could you please write a 6 paragraph summary (5-6 sentences each paragraph) of the below? In the overview, if you could please describe the information in detail. Please have completed in 6 days if possible. Thank you!

In 50 Words Or LesS .6TOC combines lean Six Sigma (LSS) and the theory of constraints (TOC) for bottom-line benefits . The methods metrics pyramids and communi- cations allow organiza- tions to retain gains and monitor benefits. · 6TOC goes beyond fac- tory floors or points of sale to reduce con- straints, defects, waste and variation.

THE NEXT EVOLUTIONARY step for Six Sigma could be a method called 6TOC (pronounced six tock) that combines principles of lean Six Sigma (LSS) with the theory of constraints (TOC) While using the tools common to lean and Six Sigma methods, бГОС čonstructs a systemwide Improvement Pro- cess that aims to produce measurable, line-of-sight, bottom- line benefits; an organizational metrics pyramid; and a man- agement and employee communication system for retaining gains and monitoring performanceDiscussing Six Sigmas emphasis on variation re metrics is important. But there is one metric in most or- duction, leans focus on waste removal and TOCs in ganizations that possesses a stronger likelihood of pre terest in constraint management, one author wrote, dicting success above all others. Many process improvement methodologies appear to conflict with each other or at least downplay the conpation, cause or rationale of business behavior and tribution of other methodologies. Rather than choos business decisions, but the test of their validity. We ing one over the other, 6TOC looks for synergy amon need an indicator that has a strong association with a the methods. According to Peter Drucker, Profit is not the ex firms profitability In the popular book Good to Great by Jim Collins, ing processes to project management, change manage several great companies were discussed and compared ment, culture change, teaming and other goals.2 6TOC with those of lesser status. One of the great compa- may help Six Sigma practitioners fashion these and nies was Walgreens. According to Collins, Walgreens other concepts together, producing a holistic system found the one metric that was used to measure the suc- Six Sigma has migrated from improving manufactur that eliminates or reduces constraints while enhancing flow and reducing defects, waste and variation. cess of work and ideas-revenue per customer visit. Looking through that prism, activities of all the I have found the results of 6TOC applied in process management and hourly personnel were considered. manufacturing and construction management e Generally speaking, if the results in either group did ronments to be impressive. But, before we discuss not increase revenue per customer visit, then those ac- the details of the 6TOC system, a brief discussion of tivities were rethought, revised or removed. This one its forerunners will be helpful and can be found in lens through which management viewed the organiza- the online sidebar, Predecessors of 6TOC, at www. landscape was credited with helping Walgreens increase market share and profitability 6TOC begins with a clear understanding and con sensus of what the organizational metric should be. Each of the improvement methods described so far Differing from Six Sigma or LSS-with metrics that has its commonalities with the others and general criti can be buried deep within the organization, a process cisms. However, I believe complementary aspects of or a value stream -the 6TOC metric should have di each can be combined to produce a powerful improve rect line-of-sight visibility to organizational success or 6TOCs capstone metric ment opportunity. I agree with the comment that to failure, which is usually measured at the bottom line. achieve maximum performance improvement lean, This metric should be senior managements most Six Sigma and other approaches should be brought to mnitored and communicated metric and the one least likely to become a victim of managerial manipulation. 6TOC is best initially understood by envisioning a pyr Think in financial terms such as revenue per sales or -amid containing several empty der, operating income per payroll hour and revenue gether as a part of a holistic improvement method.3 Metric pyramid / FIGURE 1 cells with a single capstone at the top (see Figure 1). That capstone per share. This one metric is the capstone metric in the 6TOC represents the single metric that pyramid. There should be unity across divisions and has the greatest capability of departments on the metrics identity, its calculation predicting success within your definition and, ultimately, on operating tactics that organization As Jeff Immelt, will improve the metric. Consider tying some of senior president and CEO of Genera managements -and others-incentives to this metric. When finalizing the capstone metric, work needs to be done to ensure the determination of the processes If initiatives need a metric, most influential to that metric. If products per labor shouldnt a company as well? hour were selected as the capstone metric, the manu While not arguing for a single facturing process could be easily identified as the most metric mind-set, I maintain that obvious process affecting that metric. While true, the continuation of complementary manufacturing process is a complex combination of Capstone metric Electric, said, Every initiative needs a metric.

The 6TOC metric should have direct line-of-sight visibility to organizational success or failure multiple paths converging to produce the critical path or chain that produces all final products. if no equipment or personnel were underutilized and all materials were present when needed, at what vol Through the lens of volume flow improvement,ume could that portion of the chain-or phase-pro- examination of that chains links will yield areas of improvement that are referred to as constraints or duce? Within 6TOC, the maximum volume a process can bottlenecks. Once the bottlenecks are identified, they optimally achieve is called process capable. This is are placed in descending order of negative influence derived from Joseph M. Jurans definition: What the process can do under certain conditions.7 A common Keep in mind that at this stage of the project evo approach to begin determining process capable is to lution, subject matter experts influence this ranking ask the plant supervisor or foreman how much can be on the capstone metric. exercise, and opinions may vary. Reaching consensus and validating theories through data collection and analysis is advantageous but not always possible. produced on a good day. With some additional data gathering and analysis, process capable can be derived. Once process capable is derived, the real-time production for that portion of the process is then measured and referred to as pro- Now that a list of significant bottlenecks has been con cess actual. By gathering a relevant sample of current Process chain review structed in descending fashion, the team should exam production, process actual can be established. ine the chain in process-flow form from beginning to Through improvement initiatives, the teams goal is end and should segment the chain--or value streamsiply to improve process actual to the level of pro- into logical, functional phases (see Figure 2. I suggest cess capable -thereby increasing volume in that seg- no more than four phases in most situations. This segmenting improves the projects manage 「 ability, places and focuses the teams project within theExample of functional critical chain, and affords an opportunity for small galns phases FIGURE 2 to create momentum propelling the team forward. Once the chain is segmented, identify the phases in which each of the bottlenecks occurs. In most instances, youur focus will begin in eamest with the phase that contains the bottleneck with the most negative impact. Knitting process Ironing or pressing Before moving to the next phase, bottlenecks within the original phase should be resolved. In some cases, dependencies among phases may require exami- nation of multiple phases to relieve a bottleneck of its constraining effects. This approach builds on the ap- proaches of Six Sigma, with its emphasis on cost of poor quality, and of TOC, which recommends working bottlenecks in descending order regardless of where Heavy stress checking Labeling Light stress Third separation Packing and folding knitting they exist in the chain. Final Knitting Continuing to work within the phase that contains the most troublesome bottleneck, the investigative team should seek to understand the maximum output of that phase. In other words, if all things ran perfectly First phase Third Second phase

Foundation of When matching capable machining, for example) within the company has its own with actua, lean tools (such set of leading metrics that, if combined with the other as cycle times) are used toim departments, will ultimately impact the capstone metric. Metrics that lag the companys foundational met tory. Six Sigma tools (such as rics but lead the capstone metric occupy the spaces correlation) are used to ferret between the two and are called middle metrics. Middle out cause and effect relation metrics can serve two purposes: They act as lagging ships in the quest to establish metrics for processes feeding them and as leading met- a leading metric that will pre ics for departments, units or other functional areas in 9 metrics pyramid FIGURE 3 prove speed and reduce inven Capstone dict that portion of the ma which they reside facturing chains success. This When considering these organizational metrics in metric, and others yet to be pyramid form, consider a baseball team. Each batter created, are key and form the has a batting average, which serves as that batters per foundation of the metrics py formance metric at home plate. The team also has a bat- ting average that is the average of all the players bat These metrics are leading in ting averages. The team batting average serves as the nature and point upward to a performance metric of middle metric between each players batting average Foundation metrics (leading) mid (see Figure 3). another specific function, with combined influences and the number of team wins-the capstone metric. having a significant impact on the capstone metric. In some instances, a control chart, with its upper and lower control limits, can take the place of a metric within the pyramid. Middle metrics concern themselves with total de- partment operations at the company. The summation of all middle metrics for all departments moves the needle for the companys capstone metric (see Figure 4). Middle metrics Communicating the pyramid Once the bottlenecks are relieved and process capa Juran taught the concept of placing employees in a ble equals process actual within that phase, its time state of control by doing three things: to move forward to the phase that contains the next . Inform the employees of your goal. significant constraints. Six Sigma and lean tools are 2. Tell them how they are perfoming toward that goal. again employed in the investigative process to speed 3. Give them the autonomy to make changes to posi- tively affect their performance. lationships between inputs and outputs. This 6TOC im- Unfortunately, efficient, informative management provement process continues through the entire chain communication is often an oxymoron. 6TOC can help until the capstone metric begins to move in the right bridge the communication gap from management to direction and achieves the go operators by producing a communication plan that en desired by senior management ables your employees to stay in a state of control. Middle metrics FIGURE 4 Examine Figure 5, noting that several communica er of leading metrics bridged tion media are employed that announce leading and to the capstone metric? The lagging process results that ultimately influence the connection is relational in that capstone metric. These various forms of communica the processes measured by the tion serve as signals toward ultimate capstone move leading metrics feed other proment, either positive or negative. Their continuous cesses within the production communication allows for proactive decision making chain that ultimately feed the and cause and effect analysis before monthly, quarterly or yearly results are published. Once functioning, their How is the foundational lay Middle metrics lagging and leading) capstone metric. The capstone metric could be an organizations revenue per ease of use should not be managerially taxing. Foundation metrics (leading) While I found the implementation of 6TOC in both product. Each department (pur the process manufacturing and construction manage chasing, staging, pressing and ment industries to be successful, practitioners need to

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Lean six Sigma- LSS includes various principle and combined with the Theory of constraints –TOC created a Evolutionary step for Six Sigma, and defined that method as 6TOC, 6TOC can focus on Organizational Process improvement and produce measurable, line of sight, bottom line benefits, an Organizational metrics pyramid, a Man Management and employee communication system for retaining gains and monitoring performance, as Six sigma works on reducing variation, Lean works on waste removal, where as Theory of Constraint works on Constraint Management, so assembling all these can benefit an organization in maximum way,

     6TOC can help six sigma practitioners fashion various areas like Manufacturing processes, Project management, Change Management, Culture change, Teaming and Others goal, and eliminate constraints while enhancing flow, reducing defects, waste and variation, 6TOC has wide application in Process Manufacturing and Construction Management, gaining maximum performance improvement, we need lean, six sigma and TOC together, which becomes part of a holistic improvement method, As every initiative include a metric, further the capstone presents single Metric, that has greatest capability of predicting success within the organization, As profit is the test of their validity, so we need to focus on creating an indicator that has strong association with firms profitability,

      Any activities did not result into increasing revenue per Customer visit, such activities need to be rethought, Revised or Removed, there was a company named Walgreen got benefited with such approach and increased market share and Profitability, 6TOC metric should have direct line of sight visibility to organizational success, failure, which is usually measured at the bottom-line, if I consider Products per labor hour as capstone metric, we can identify manufacturing processes that affecting the metric as mentioned, any bottle neck identified are placed in descending order of negative Influence on the capstone Metric, for any data collection and analysis it is good to reach consensus and validating theories,

    List of significant bottleneck should be constructed in descending orders, the segmenting process can improve project’s manageability, places and focuses that a team’s project within the critical supply chain, if the chain is segmented, we can identify the phases in which each of bottlenecks occurs, approaches of six sigma create emphasis on cost of poor quality, Theory of constraints which usually recommends working bottlenecks in descending order, within 6TOC, the Maximum volume a process can achieve is called process capable, very common approach to make process capable is asking supervisors about how much can be produced on a good day, Process actual can be produced by gathering various relevant sample of current production, the team’s goal is to improve process actual to the level of process capable, thus can increase volume in that segment of chain,

    Lean tools improve the speed and reduce inventory, six sigma tools create the correlations and establish a leading metric that will predict that portion of manufacturing chains success, control chart with its upper and lower control limits can take place of a metric within the pyramid, 6TOC improvement process continues through the entire chain until the capstone metric begins to move in the right direction and achieves goal desired by senior management, Metrics that lag the company’s foundational metrics but lead the capstone metric that occupy the spaces between the two and are called middle metrics, Middle Metrics concern themselves within the organizations department and summation of all the middle metrics for all departments moves the needle for the company’s capstone metric,

    Communicating the pyramid based on informing the employees of organizational goal, tell them how they are performing toward the goal, Give them autonomy to make changes to positively affect their performance, 6TOC can help bridging the communication gap between management and operators by preparing the communication plan, the approach from management to be supportive, coaching in style but can demand accountability in orientation, Participants need to understand importance of their commitment, Organizational goal has to be use lean, six sigma and TOC in the system to surgically improve a company from top to bottom, 6TOC can allow managers, Process owners, for combining Six Sigma, Lean and Theory of constraints to reach the next step on the evolutionary improvement ladder,

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