Applying Goldratt's theory of constraints to reduce the Bullwhip Effect through agent-based modeling

In the current environment, Supply Chain Management (SCM) is a major concern for businesses. The Bullwhip Effect is a proven cause of significant inefficiencies in SCM. This paper applies Goldratt’s Theory of Constraints (TOC) to reduce it. KAOS methodology has been used to devise the conceptual model for a multi-agent system, which is used to experiment with the well known ‘Beer Game’ supply chain exercise. Our work brings evidence that TOC, with its bottleneck management strategy through the Drum-Buffer-Rope (DBR) methodology, induces significant improvements. Opposed to traditional management policies, linked to the mass production paradigm, TOC systemic approach generates large operational and financial advantages for each node in the supply chain, without any undesirable collateral effect

Strategies for Exploring: ACAT III Requirement Approval Process

The United States Congress mandated the Secretary of Defense develop a strategy to streamline the joint capabilities integrated development system (JCIDS). The purpose of this qualitative single case study was to explore strategies that senior U.S. Army Commanders might use to reduce the approval time for an acquisition category (ACAT) III need document in the JCIDS. Data came from historical documents and semistructured interviews of 30 ACAT III requirement writers and senior U.S. Army commanders with expertise in JCIDS. The conceptual framework was Goldratt\u27s theory of constraints. Miles, Huberman, and Saldana\u27s data analysis method was used to identify themes. Six themes emerged that yielded 6 possible strategies to reduce approval time: (a) define and implement an objective goal, (b) simplify the process and decrease redundancy by reducing or eliminating irrelevant levels of review, (c) determine the optimum number of reviews necessary for the desired outcome, (d) determine if the Chief of Staff of the Army should be the approving authority for an ACAT III need document, (e) determine the appropriate offices and individuals that should be consulted about the need document during the world wide review process, and (f) enhance training for JCIDS personnel participating in the ACAT III need approval process. The study findings may contribute to positive organizational and social change by potentially saving U.S. taxpayer funding and by enhancing the combat efficiency of the U.S. Army, thereby increasing the safety and security of the United States and its citizens

The Relationship Between Customers’ Satisfaction and Trust in the Global Supply Chain and Profitability

The inability to meet customer demands and expectations impacts an organization’s profitability. Understanding and meeting customer needs are critical for the financial success of business owners. Grounded in the theory of constraints, the purpose of this quantitative ex post facto study was to examine the relationships between customers’ satisfaction and trust in the supply chain and profitability. Secondary data (n = 121) were collected from the Elsevier Research Database using archival data collected from an automotive factory. Data were analyzed using multiple linear regression, and the results were statistically significant, F (2, 118) = 264.347, p \u3c .001, R2 = .90. In the final model, both predictor variables were significant, customers’ satisfaction: mean wait time (t = 22.991, p \u3c .001, β = 16.23); and customers’ trust: minimum stock level (t = 7.306, p \u3c .001, β = .118). A key recommendation is for business leaders to satisfy customers and gain their trust by creating sufficient inventory stocking levels and improving replenishment timeframes that meet customers’ supply chain demands. The implications for positive social change include the opportunity for supply chain managers to develop an effective supply chain that may contribute to the quality of service that promotes success in regional markets, sustain growth, and allows for social development among the local community workforces

The Relationship Between Customers’ Satisfaction and Trust in the Global Supply Chain and Profitability

The inability to meet customer demands and expectations impacts an organization’s profitability. Understanding and meeting customer needs are critical for the financial success of business owners. Grounded in the theory of constraints, the purpose of this quantitative ex post facto study was to examine the relationships between customers’ satisfaction and trust in the supply chain and profitability. Secondary data (n = 121) were collected from the Elsevier Research Database using archival data collected from an automotive factory. Data were analyzed using multiple linear regression, and the results were statistically significant, F (2, 118) = 264.347, p \u3c .001, R2 = .90. In the final model, both predictor variables were significant, customers’ satisfaction: mean wait time (t = 22.991, p \u3c .001, β = 16.23); and customers’ trust: minimum stock level (t = 7.306, p \u3c .001, β = .118). A key recommendation is for business leaders to satisfy customers and gain their trust by creating sufficient inventory stocking levels and improving replenishment timeframes that meet customers’ supply chain demands. The implications for positive social change include the opportunity for supply chain managers to develop an effective supply chain that may contribute to the quality of service that promotes success in regional markets, sustain growth, and allows for social development among the local community workforces

Gestión de restricciones físicas a través de indicadores logísticos

In this article is proposed one proceeding to management physical restraints in the logistic systems, follow-up the general philosophy of the Theory of Constraints through logistic indicators like main instrument. In order to evidence its pertinence a case of study in a trading enterprise in Cuba shows up. A group of indicators of logistic management that measure the performance of the entity was obtained, and in terms of these were determined the restrictive resources that affect its effectiveness. From its identification, the physical constraint of logistic system was able to rise.En este artículo se propone un proceder para la gestión de las restricciones físicas en los sistemas logísticos en empresas comercializadoras, que sigue la filosofía general de la Teoría de las Restricciones y la utilización de indicadores logísticos como principal herramienta. Para evidenciar su pertinencia se presenta un caso de aplicación en una entidad comercializadora en Cuba. Se obtuvo un conjunto de indicadores de gestión logística que miden el desempeño de la entidad, y en función de estos se determinaron los recursos restrictivos que afectan su efectividad. A partir de su identificación se logró elevar la restricción física del sistema logístico

Doctor of Philosophy

dissertationIn 1998 Intermountain Healthcare instituted a mental health integration program in its primary care clinics. Mental health patients typify complex customers: those who supply multiple inputs into service processes whose inputs can expand across multiple service providers or multiple service visits. In this study, customer complexity is measured on a continuum by the number of co-morbidities of the patient (customer). It is hypothesized that complex customers receive better service from integrated service offerings than modular service offerings because complex customers have the most difficulty coordinating and combining services. The intensity of service integration is defined by the amount of coordination and combination of disparate service processes done by the service provider on behalf of the customer; in this study integration is measured by the practices' compliance to Intermountain Healthcare's mental health integration program This study tests the hypothesis that integrated clinics decrease patients' healthcare asset usage, which is assumed to also correlate with better care. The theory is tested by contrasting two patient cohorts: one serviced in integrated clinics and the other serviced in nonintegrated clinics. The patients' medical records are followed for 3 years, and the hypothesis tests are performed using hierarchal models based on the Negative Binomial Regression for count outcomes. These findings offer support for the hypothesis that more integrated service offerings require complex patients to use fewer medical assets. The main study reveals two important theoretical contributions to the service management literature: an examination of integration and modularity of service design and recognition of the complex customer. While integration and modularity of product design are prevalent in the literature, this study examines integration and modularity in service design. Services can be integrated along both location and coordination, potentially offering swifter and more even flow through the service process. In attempting to coordinate disparate service processes, the complex customer acts as co-designer of the service supply chain. Recognition of the complex customer requires service management to look at service supply chains as part of a natural service supply chain that requires coordination with other service's processes outside the firm before the service can be completed

Systems in management 7th annual ANZSYS conference 2001: The relevance of systems thinking in the contemporary world

Welcome to Perth, Western Australia, and to the Systems in Management 7th Annual ANZSYS Conference 2001 the relevance of systems thinking in the contemporary world hosted by the We-B Centre, School of Management Information Systems at Edith Cowan University. The conference provides an opportunity for sharing and networking among academics and industry specialists in systems and related fields. The conference has drawn participants from national and international organizations. All submitted papers were subjected to an anonymous peer review process managed by the Conference Committee. Stringent review criteria resulted in an unprecedented number of papers declined this year. Based on these reviews, the final programme was determined. A total of 54 papers were submitted for consideration and 39 were accepted for presentation. The Conference Committee would like to recognise the efforts of many people who have contributed to the success and support in the organising of this conference and without their efforts the conference could not have occurred. The authors are thanked for their continued support to the Systems in Management 7th Annual ANZSYS Conference 2001 and we hope that the conference will receive similar support into the future. The reviewers deserve a special vote of thanks for their commitment and dedication in having their reviews conducted professionally. This year saw the launch of our Best Paper and Paper of Distinction award program. Papers nominated for this honour received particularly rigorous reviews. The winners will be announced at the conference. Thank you and enjoy the conference

Integração da teoria das restrições, manufatura enxuta e seis sigma : análise da aplicação em uma oficina ferroviária

Orientador: Prof. Dr. Marcelo Gechele CletoDissertação (mestrado) - Universidade Federal do Paraná, Setor de Tecnologia, Programa de Pós-Graduação em Engenharia de Produção. Defesa : Curitiba, 21/02/2018Inclui referências: p.123-129Área de concentração: Tecnologia e InovaçãoResumo: O aumento da produtividade de processos vai além de otimizar o retorno financeiro das empresas, pois está profundamente relacionado ao crescimento da geração de riquezas nos países dessas organizações. Segundo um estudo do Banco Interamericano de Desenvolvimento, os países da américa latina poderiam gerar um PIB 50% maior, se o nível de produtividade de sua população acompanhasse os níveis norte-americanos desde a década de 60. Compreendendo a relevância desse tema, o presente trabalho tem como objetivo avaliar qual é o impacto, sob a perspectiva de produtividade, nos resultados operacionais de uma oficina ferroviária ao se aplicar um modelo de integração da Teoria das Restrições, da Manufatura Enxuta e do Seis Sigma. Por meio de uma pesquisa-ação, foram registrados os detalhes das aplicações das ferramentas propostas no modelo. Ao final do trabalho, os resultados operacionais da oficina melhoraram de forma significativa, o que pode ser verificado nos indicadores de lead time, que foi reduzido em 46%, e de atendimento ao cliente, que antes do projeto possuía uma média de 7,7 locomotivas aguardando peças e, após a aplicação das ferramentas, foi reduzida para 0,7. Foi possível concluir que o modelo de integração forneceu um sequenciamento lógico eficiente para aplicação dos conceitos propostos pelas três abordagens, também foi possível identificar alguns pontos de melhoria no modelo de integração, que poderá ser aplicado em estudos futuros. Palavras Chaves: Teoria das Restrições, Manufatura Enxuta, Seis Sigma, Integração, Ferrovia, Oficina Ferroviária.Abstract: The productivity increase goes beyond the financial returns, it is deeply related to the wealth creation growth in the nations in which they are held. A research made by the Banco Interamericano de Desenvolvimento (BID) states that the Latin America's GDP would be 50% higher if its productivity kept the North American pace since the 1960's. In this scenario, the current work has the goal to evaluate the impact in the productivity process indicators in a railroad repair shop, by the implementation of an integration model of the Theory of Constraints, Lean Manufacturing and Six Sigma. Applying the action research methodology, the tools and concepts application of each approach were registered. At the end, the operational results were improved in a significant way, the lead time was reduced in 46%, the client delivery had reached a higher level, so that, before the integration there was an average of 7,72 locomotives waiting for spare parts and after the project it was reduced to 0,7. The results lead to the conclusion that the integration model had provided a valued logical guide to the efficient application of the tools and concepts of the 3 philosophies, it was also possible to identify some improvements that should be applied to the model in future researches. Key Words: Theory of Constraints, Lean Manufacturing, Six Sigma, Integration Model, Railroad, Repair Shop