The Goal: a process of Ongoing Improvement

part just so they can have enough to assemble a shipment. So we end up
having fifty parts wait while we heat-treat a handful. I mean, this operation is
run like a barbershop—take a number and stand in line.’’
"So we’re not running full batches.’’
"Yeah, sometimes we are. But sometimes even if we do a full batch in
number, it’s not enough to fill the furnace.’’
"The batches are too small?’’
"Or too big in size, and we have to run a second heat to handle the pieces that
wouldn’t fit in the first. It just never seems to work out,’’ says Bob. "You
know, a couple of years ago, there was a proposal to add a third furnace, on
account of the problems.’’
"What happened to it?’’
"It was killed at the division level. They wouldn’t authorize the funds because
of low efficiencies. They told us to use the capacity we’ve got. Then maybe
they’d talk expansion. Besides, there was all kinds of noise about how we’ve

---

got to save energy and how another furnace would burn twice as much fuel
and all that.’’
"Okay, but if we filled the furnace every time, would we have enough
capacity to meet demand?’’ I ask.
Bob laughs.
"I don’t know. We’ve never done it that way before.’’
Once upon a time, I had an idea for doing to the plant essentially what I
did with the boys on the hike. I thought the best thing to do would be to
reorganize everything so the resource with the least capacity would be first in
the routings. All other resources would have gradual increases in capacity to
make up for the statistical fluctuations passed on through dependency.
Well, the staff and I meet right after Bob and I get back to the office, and
it’s pretty obvious, awfully damn quick, that my grand plan for the perfect 
un
balanced plant with Herbie in front is just not going to fly.
"From a production standpoint, we can’t do it,’’ says Stacey. "There is
just no way we can move even one Herbie—let alone two—to the front of
production,’’ Bob says. "The sequence of operations has to stay the way it is.
There’s nothing we can do about it.’’
"Okay, I already can see that,’’ I say.
"We’re stuck with a set of dependent events,’’ says Lou. As I listen to them, I
get that old familiar feeling which comes whenever a lot of work and energy
are about to go down the tubes. It’s kind of like watching a tire go flat.
I say, "Okay, if we can’t do anything to change their position in the
sequence, then maybe we can increase their capacities. We’ll make them into
non-bottlenecks.’’
Stacey asks, "But what about the step-up in capacity from beginning to
end?’’

---

"We’ll reorganize...we’ll decrease capacity at the head of production and
increase it each stage on through,’’ I suggest.
"Al, we’re not just talking about moving people around. How can we add
capacity without adding equipment?’’ asks Bob. "And if we’re talking about
equipment, we’re getting ourselves into some major capital. A second
furnace on heat-treat, and possibly a second n/c machine... brother, you’re
talking megabucks.’’
"The bottom line,’’ says Lou, "is that we don’t have the money. If we think
we can go to Peach and ask him for 
excess
capacity for a plant that currently
isn’t making money in the middle of one of the worst years in the company’s
history . . . well, excuse my French, but we’re out of our goddamned minds.’’

---

19
My mother and the kids and I are having dinner that evening when Mom
says to me, "Aren’t you going to eat your peas, Alex?’’
I tell her, "Mom, I’m an adult now. It’s my option whether or not to eat
my peas.’’
She looks hurt.
I say, "Sorry. I’m a little depressed tonight.’’
"What’s wrong, Dad?’’ asks Davey.
"Well...it’s kind of complicated,’’ I say. "Let’s just finish dinner. I’ve got to
leave for the airport in a few minutes.’’
"Are you going away?’’ asks Sharon.
"No, I’m just going to pick up somebody,’’ I say.
"Is it Mommy?’’ asks Sharon.
"No, not Mommy. I wish it could be.’’
"Alex, tell your children what’s bothering you,’’ says my mother. "It affects
them, too.’’
I look at the kids and realize my mother’s right. I say, "We found out we’ve
got some problems at the plant which we might not be able to solve.’’
"What about the man you called?’’ she asks. "Can’t you talk to him?’’

---

"You mean Jonah? That’s who I’m picking up at the airport,’’ I say. "But I’m
not sure even Jonah’s help will do any good.’’
Hearing this, Dave is shocked. He says, "You mean...all that stuff we learned
about on the hike, about Herbie setting the speed for the whole troop and all
that—none of that was true?’’
"Of course it’s still true, Dave,’’ I tell him. "The problem is, we discovered
we’ve got 
two
Herbies at the plant, and they’re right where we don’t want
them. It would be as if we couldn’t rearrange the boys on the trail and Herbie
had a twin brother— and now they’re both stuck in the middle of the line.
They’re holding everything up. We can’t move them. We’ve got piles and
piles of inventory stacked up in front of them. I don’t know what we can do.’’
Mom says, "Well, if they can’t do the work, you’ll just have to let them go.’’
"It’s not people; it’s equipment,’’ I explain. "We can’t fire machines. And,
anyway, what they do is essential. We couldn’t produce most of our products
without these two operations.’’
"So why don’t you make them go faster?’’ asks Sharon.
"Sure, Dad,’’ says Davey. "Remember what happened on the hike when you
took Herbie’s pack from him? Maybe you could do something kind of like
that in the plant.’’
"Yeah, but it’s not quite that simple,’’ I say.
Mom says, "Alex, I know you’ll do the best you can. If you’ve got these two
slow pokes holding everything up, you’ll just have to keep after them and
make sure they don’t waste any more time.’’
I say, "Yeah, well, I’ve got to run. Don’t wait up for me. I’ll see you in the
morning.’’
Waiting at the gate, I watch Jonah’s plane taxi up to the terminal. I talked
to him in Boston this afternoon just before he was leaving for Los Angeles. I

---

told him I wanted to thank him for his advice, but that the situation at the
plant was impossible so far as we could see.
"Alex, how do you know it’s impossible?’’ he asked.
I told him, "We’ve only got two months left before my boss goes to the
board of directors with his recommendation. If we had more time, maybe we
could do something, but with only two months....’’
"Two months is still enough time to show an improvement,’’ he said.
"But you have to learn how to run your plant by its constraints.’’
"Jonah, we’ve analyzed the situation thoroughly—’’
He said, "Alex, there are two ways that the ideas I’m giving you won’t
work. One is if there isn’t any demand for the products your plant makes.’’
"No, we have a demand, although it’s shrinking as our prices go up and
service deteriorates,’’ I said. "But we still have a sizeable backlog of orders.’’
"I also can’t help you if you’re determined not to change. Have you made
up your mind to do nothing and let the plant close?’’
"It’s not that we want to give up,’’ I told him. "It’s that we don’t see any
other possibilities.’’
"Okay then. Have you tried to take some of the load off the bottlenecks
by using other resources?’’ he asked.
"You mean offloading? We can’t. These are the only two resources of their
type in the plant.’’
He paused for a moment and finally he said, "All right, one more question:
Does Bearington have an airport?’’
And so here he is tonight, walking out of Gate Two. He changed his flight to
Los Angeles to make a stop here for the evening. I walk up to him and shake

---

his hand.
"How was your flight?’’ I ask him.
"Have you ever spent time in a sardine can?’’ he says, then adds, "I shouldn’t
complain. I’m still breathing.’’
"Well, thanks for coming,’’ I tell him. "I appreciate you changing your plans,
although I’m still not sure you can help us.’’
"Alex, having a bottleneck—’’
"Two bottlenecks,’’ I remind him.
"Having 
two 
bottlenecks doesn’t mean you can’t make money,’’ he says.
"Quite the contrary, in fact. Most manufacturing plants do not have
bottlenecks. They have enormous excess capacity. But they should have them
—one on every part they make.’’
He reads the puzzled look on my face.
"You don’t understand, but you will,’’ he said. "Now I want you to give me
as much background on your plant as you can.’’
All the way from the airport, I talk non-stop about our predicament.
When we reach the plant, I park the 
Mazda
in front of the offices. Waiting for
us inside are Bob, Lou, Stacey and Ralph. They’re standing around the vacant
receptionist’s desk. Everyone is cordial, but as I make the introductions I can
tell the staff is waiting to see if this Jonah guy—who bears no resemblance to
any consultant they’ve ever seen walk through the door—really knows what
he’s doing. Jonah stands in front of them and begins to pace as he talks.
"Alex called me today because you perceive a problem with the
bottlenecks you’ve discovered in your plant,’’ says Jonah. "Actually, you are
experiencing a combination of several problems. But first things first. From
what Alex has told me, your most immediate need is to increase throughput
and improve your cash flow. Am I right?’’

---

"That sure would be a big help,’’ says Lou. "How do you think we might
be able to do that?’’
"Your bottlenecks are not maintaining a flow sufficient to meet demand and
make money,’’ he says. "So there is only one thing to do. We have to find
more capacity.’’
"But we don’t have the money for more capacity,’’ says Lou.
"Or the time to install it,’’ says Bob.
"I’m not talking about more capacity from one end of the plant to the other,’’
says Jonah. "To increase the capacity of the plant is to increase the capacity
of 
only
the bottlenecks.’’
"You mean make them into non-bottlenecks,’’ says Stacey.
"No,’’ he says. "Absolutely not. The bottlenecks stay bottlenecks. What we
must do is find enough capacity for the bottlenecks to become more equal to
demand.’’
"Where’re we going to find it?’’ asks Bob. "You mean it’s just layin’ around
out there?’’
"In effect, yes,’’ says Jonah. "If you are like most manufacturers, you will
have capacity that is 
hidden 
from you because some of your thinking is
incorrect. And I suggest that first of all we go into your plant and see for
ourselves exactly how you are managing your two bottlenecks.’’
"Why not,’’ I say. "After all, no one visits this plant and escapes without a
tour.’’
The six of us put on the safety glasses and hats and go into the plant. Jonah
and I head the column as we walk through the double doors into the orange
light. It’s about halfway into second shift now and somewhat quieter than it is
on day turn. That’s good because it lets us hear each other better when we

---

talk. I point out various stages of production to Jonah as we walk. I notice
Jonah’s eyes measuring the stacks of inventory piled everywhere. I try to
hurry us along.
"This is our NCX-10 n/c machine,’’ I tell Jonah as we arrive at the big
machine.
"And this is your bottleneck, correct?’’ asks Jonah.
"One of them,’’ I say.
"Can you tell me why isn’t it working right now?’’ asks Jonah.
Indeed, the NCX-10 is stopped at the moment.
I say, "Well... ah, good question. Bob, why isn’t the NCX-10 running?’’
Bob glances at his watch.
"Probably because the set-up people went on break about ten minutes ago,’’
says Bob. "They should be back in about twenty minutes.’’
"There is a clause in our union contract which stipulates there must be a half-
hour break after every four hours of work,’’ I explain to Jonah.
He asks, "But why should they take their break now instead of when the
machine is running?’’
Bob says, "Because it was eight o’clock and—’’
Jonah holds up his hands and says, "Wait a minute. On any