This article traces the evolution of production systems, highlighting Toyota’s lean principles, Hitachi’s struggles, and the effectiveness of Drum-Buffer-Rope (DBR) in volatile environments.Problem : Lean systems fail in environments with high variability in demand, short product lifecycles, and unstable resource loads. This results in inefficiencies, longer lead times, and missed due dates, as evidenced by Hitachi's repeated lean implementation failures.Solution : DBR, a time-based system, controls material release to manage flow, reduce lead times, and stabilise operations. Its buffer management handles variability and minimises disruptions.Benefits : DBR halved lead times, improved due date performance from 40% to 85%, increased sales by 20%, and boosted profits fivefold at Hitachi, enabling growth in volatile markets.

Key Takeaways

Lean concepts face challenges when there is high variability in environments. This article explores a time-based dynamic approach inspired by TPS that allows the supply chain and production to maintain flow in unstable environments.

Standing on the shoulders of the giants

<h4>Standing on the shoulders of the giants</h4>

Download PDF

Goldratt built on the flow concepts developed by Ford and Ohno (Toyota)for stable environments to invent Drum-Buffer-Rope or DBR to improve flow in relatively unstable environments. Read more.

Let's Empower Growth