Page 96 - The Handbook for Quality Management a Complete Guide to Operational Excellence
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82   I n t e g r a t e d   P l a n n i n g                                   S t r a t e g i c   P l a n n i n g    83


                                       internal resource, it means using that resource in the best way to
                                       maximize  its  marginal  contribution  to  prof it.  This  might  mean
                                       process  quality  improvement,  re-engineering  the  flow  of  work
                                       through the process, or changing the product mix. Exploitation
                                       of  the  constraint  should  be  the  kernel  of  tactical  planning—
                                       ensuring the best performance the system can draw now. For this
                                       reason, the responsibility for exploitation lies with the line managers
                                       who must provide that plan and communicate it, so that every one
                                       else understands the exploitation scheme for the immediate future.
                                    3.  Subordinate. Once the decision on how to exploit the constraint has
                                       been made, subordinate everything else to that decision. This is, at the
                                       same time, the most important and the most difficult of the five
                                       focus ing  steps  to  accomplish.  Why  is  it  so  difficult?  It  requires
                                       everyone and every part of the system not directly involved with
                                       the constraint to subordinate, or “put in second place,” their own
                                       cherished  success  mea sures,  efficiencies,  and  egos.  It  requires
                                       everyone, from top management on down, to accept the idea that
                                       excess  capacity  in  the  system  at  most  locations  is  not  just
                                       acceptable—it’s actually a good and necessary thing!
                                      Subordination formally relegates all parts of the system that are
                                       not  constraints  (referred  to  as  “non-constraints”)  to  the  role  of
                                       supporters of the constraint. This can create behavioral problems
                                       at  almost  all  levels  of  the  company.  It’s  very  difficult  for  most
                                       people to accept that they and/or their part of the organization
                                       aren’t  just  as  critical  to  the  success  of  the  system  as  any  other.
                                       Consequently, most people at non-con straints will resist doing the
                                       things  necessary  to  subordinate  the  rest  of  the  system  to  the
                                       constraint.  This  is  what  makes  the  third  step  so  diffi cult  to
                                       accomplish.
                                      What makes the constraint more critical to the organization is its
                                       rel ative weakness. What distinguishes a non-constraint is its relative
                                       strength, which enables it to be more flexible. So the current perfor-
                                       mance of the organization really hinges on the weak point. While
                                       the other parts of the system could do more, because of that weak
                                       point  there  is  no  point  in  doing  more.  Instead,  the  key  to  better
                                       performance is wisely subordinating the stronger points so that
                                       the weak point can be exploited in full.
                                      Subordination actually redefines the objectives of every process in
                                       the system. Each process is supposed to accomplish a mission that’s
                                       nec essary  for  the  ultimate  achievement  of  the  goal.  But  among
                                       processes there may be conflicting priorities, such as competition
                                       for  the  same  resources.  Subordinating  non-constraints  actually
                                       focuses the efforts of every process on truly supporting the goal of
                                       organization. It allows the constraint to be exploited in the best way
                                       possible.








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