Sunday, February 04, 2007

Eli Goldratt's P&Q



The infamous "P&Q Example"
from the mind of Eli Goldratt

Want to increase your throughput?

Read and complete this exercise: P&Q Example (PDF)

Nothing too difficult. Simple and basic math skills will suffice.

No cheating. No guessing. No approximations. No modifying the example (at least not yet). You must read the example and work out the math. Pen and paper are fine. No fancy spreadsheet required. However, I will email everyone who asks, a copy of the one I created to help explain the P&Q challenge.

Ever heard the expression, "There is more to it, than face value?" Or, "It looks too good to be true?"

These are light-hearted attempts to explain why solutions that seem to make good sense often result in disaster.

I have witnessed numerous "tests" by Goldratt of the P&Q Example in live audiences. He gives them plenty of time to work it out. My first time, I got $1500, along with about 80% of the attendees. In fact, almost every time, with rooms full of managers and often "C" level executives, the majority arrive at $1500 for the weekly profit.

Wrong.

Why is it wrong? Inattention to detail. In real life, there are constraints. Why am I not driving that new Chrysler Pacifica that "calls to me?" It was either a new Harley V-Rod or the Pacifica. Life is full of constraints. Businesses too.

Remember the movie, Colossus: The Forbin Project?

Once the United States supercomputer discovers the Soviet version, they get connected and started communicating. Building on simple math concepts, until the dialog evolves into a new computer language.

Start working the P&Q Example based on simple addition, subtraction and multiplication. Calculate the assumptions. Find the constraint. Then solve based on the constraint. Now what is your answer?

Once we understand these basics, we can proceed to fixing your throughput issues.

Not one minute sooner.

Jeff 'SKI' Kinsey, Jonah
www.ThroughputPress.com


Chicago Bears by 6



Prediction: Chicago Bears win SuperBowl XLI by 6

When my son was growing up, we were Bears fans. What's not to love about a team with talent like Mike Ditka, Head Coach; Buddy Ryan, Defensive Coordinator; Ed Hughes, Offensive Coordinator?

Not to mention Jim McMahon, Walter Payton, Richard Dent and 'Refrigerator' Perry!

"The Bears won Super Bowl 20 (1985) by a score
of 46-10,
by far the largest margin of victory in a
super bowl
to that point."

I look forward a defensive battle of epic proportions.

Bears to win SuperBowl XLI by 6.


Jeff 'SKI' Kinsey, Jonah
www.ThroughputPress.com

P.S. Moments after the Bears won their place of honor this year, I received a text message from my son, "R U Ready for the Bears in the Superbowl!" My reply: Yes!

P.P.S. I am also watching for the next "GoDaddy" success story, as outrageous SuperBowl ads have launched a number of icons... like the 1984 Apple MacIntosh.

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Saturday, February 03, 2007

VTwin Expo



I love to tell Ben Franklin "for want of a nail" stories

The picture of me on the right (for the last week or so) is me at Sturgis in 2005. I just got back tonight from a quick run to Cincinnati, Ohio to the 7th annual VTwin Expo. Mecca for VTwin dealers and bike builders. Always a good time to grab some Skyline Chili too...

The story

So, back a few years ago, I see this Red Horse motorcycle in American Iron magazine. Write in Purple Curve Effect about my desire to build one or more customs. Mention my love of the Red Horse brand. That their salesman, Brad, is on top of his game. End up meeting the owner and going to work for Red Horse as the Director of Manufacturing. Apply Constraints Management and reduce inventory by 50% while doubling throughput of completed bikes. In 90 days.

Which leads me to meeting Joe D. Who puts together a wheel program for me and Red Horse that allows us in part to hit those breakthroughs mentioned above. When I left Red Horse, I opened a dealership, and had that black beauty built to my specs. Pro Street with Harley Twin Cam 88" with a fat front tire (only 19", not the standand 21"), right side drive with hydraulic clutch and chrome V-Rod hand controls, 250mm rear tire. To mention a few of the highlights.

Through Joe, I end up working a booth at Sturgis, and had the bike shipped out for sale. Got to cruise downtown Sturgis on it, and the photo was taken. Another dream, come true. Well today, again in large part due to Joe's efforts, I helped man a booth in Cincy.

Joe is the absolute "go to guy" for the bike builder or dealer in this industry. His marketing group, Pro Riders Marketing based in Lee's Summit, Missouri represents a number of top shelf vendors. In fact, I got to chat with a number of them today:
  • Forge – Tec Motorcycle Wheels – Booth# 270
  • Kerr Leathers (Leather Apparel & Helmets) – Booth# 2440
  • ACCEL Motorcycle Products – Booth# 913
  • B’ Cool Products (Fenders & Rollers) – Booth# 377
  • Maximum Metal Works (Frames & Rollers) – Booth# 2325
The show runs through Monday, so if you are a dealer or builder, there is still time to make the trek. Questions? Call Joe: (319) 389-0798. Tell'm "SKI sent me!"

Jeff 'SKI' Kinsey, Jonah
www.ThroughputPress.com

P.S. Speaking of wheels, Forge-Tec introduced a number of new styles today.

P.P.S. Disclaimer: I actually consult with Joe on a number of projects. So although 100% accurate, my praise for these vendors might be coloured by my relationship with Pro Riders Marketing. I do not think so. I tend to favor the facts. For example, a large number of custom builders were sporting Forge-Tec wheels and Maximum Metal Works frames... again, my reason for this post was to encourage any "local" builders or dealers to make the trek. There are 100s of vendors on display.

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