Risk Management - A Shift in Thinking: The Shift in Thinking: Part One
Measuring Flow
The focus on what we are doing and is that efficient, is replaced by a systems focus on flow and output
Status Quo
Activity-based and cost metrics are used to measure performance.
New Paradigm
Trending risk and throughput measurements are used to measure the flow of work.
Release Gate
The focus on starting new jobs is replaced with jobs are released just to support the near-term intended output of the system
Status Quo
As businesses grow, there is typically more work in progress in play and therefore schedulers and operators have more choices. Many times, wrong choices are made that negatively impact the rate of flow but enhance resource productivity.
New Paradigm
Schedulers and operators release work based on scheduling rules to ensure a smooth flow of work. Operators only start what can be completed with the intention of reducing work in progress and overloading.
Optimising the Capacity of the Constraint Schedule
The focus on releasing jobs as soon as possible is replaced with the constraint's work being scheduled to 'best' meet market demand
Status Quo
Managers release and reprioritise schedules creating more work in progress and unfinished jobs.
New Paradigm
A schedule is created that is tied to the constraint availability. A system can only produce throughput relative to its constraint and thus output is tied to the constraint. This forces managers/operators to find ways to elevate the constraint to get more performance out of the flow itself.
