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Substitute Processes - Inventory examples Inventory is put in place in an attempt to make up for what could go wrong in the process. A customer orders more than expected or different mix A vendor has process problems Forecasting is poor Resources not available - equipment goes down or people are absent Scenario Inventory Addition Finished goods inventory Raw material inventory All forms of inventory Work-in-process inventory Barrier Characterization Using Cause Effect Diagrams Cause and Effect Diagrams “Fishbones” TCT uses cause and effect diagrams (Fishbones) to generate cause, effect, and substitute process diagrams. Use the following procedure: 1. Define the effect - this is attached to the “spine”. 2. Show the major causes as “bones” below the spine. 3. Show the corresponding substitute processes as “bones” above the spine. (There will be occasions when two or more barriers will have the same substitute process.) 4. Show the culture constraints as opposing double arrow (if applicable). The causes help characterize the effect, some are symptoms and some are barriers. Work symptoms backwards until you reach the root cause or primary cause for the barrier. Fishbone The Fishbone Diagram can be used for two different purposes. First, to arrive at root cause barriers and their related substitute processes by repeating the question, “Why?”. Second, to organize brainstormed lists of causes (usually business process and culture), substitute processes, and culture constraints for a high ranking barrier you wish to remove. The Cause and Substitute Process Diagram Substitute Process Substitute Process Substitute Process Possible Cause Possible Cause Possible Cause State the Effect Effect - An event that occurs as a result of a cause Contributing factor to cause Reason contributing factor occurs Which Barriers Do We Attack First? After identifying all relevant barriers: Make first-pass estimate of impact on cycle time of each. Identify who
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