Page 271 - The Handbook for Quality Management a Complete Guide to Operational Excellence

258 C o n t i n u o u s I m p r o v e m e n t e f f e c t i v e C h a n g e M a n a g e m e n t 259

within the team on how well each project option met the criteria. The
options rating matrix for the benefit/cost ratio criteria is shown in Fig. 12.4.
Note that there will be an options matrix for each criterion, so eight option
matrices in this case.
A summary matrix can then be constructed by applying the criteria
weights (shown in Fig. 12.3) to each of the eight option matrices. The sum-
mary matrix for the example, shown in Fig. 12.5, indicates that the best
overall benefit relative to the weighted criteria is provided by the ECO
Cycle Time Reduction project.
When criteria have equal weight, a simpler matrix diagram can be
used to directly compare each option with each criteria. The analytical
hierarchy process, also known as the full analytical method, is more time-
consuming but allows a team to develop consensus on the criteria impor-
tance and the relative benefits of each project as it moves through the
generation of each score in each cell of each matrix.
Project Selection Using Constraint Theory
Another approach for project selection uses the theory of constraints
(TOC), discussed in Chap. 5. Pyzdek and Keller (2010) provide the follow-
ing approach (used by permission), based on Goldratt’s methods for con-
straint management (1990):
1. Identify the system’s constraint(s). Consider a fictitious company
that produces only two products, P and Q (Fig. 12.6). The market
demand for P is 100 units per week and P sells for $90 per unit.

P Q
$90/U $100/U
100 U/Wk 50 U/Wk

Purchase D D
part 15 min/U 5 min/U
$5/U

C C B
10 min/U 5 min/U 15 min/U

A B A
15 min/U 15 min/U 10 min/U

RM1 RM2 RM3
$20/U $20/U $20/U

Figure 12.6 A simple process with a constraint.

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