Constraints Management

The Theory of Constraints:

Physical Process Games
The Nickel Game Instructions
(Watch these instructions in <Slide Show><View Show> to see
the animations)
Washington State Universitys
Engineering Management Program
http://www.cea.wsu.edu/engrmgt/

James R. Holt, Ph.D., PE.

Jholt@wsu.edu
http://www.vancouver.wsu.edu/fac/holt/

Another Issue in Operations that Surfaces:

Batch Size

Often times, we focus on getting the most out of our resources.

We tend to measure this by efficiency
Amount of time working/Total Available Time
This is a lagging measure that looks back in time.
Lets Play and efficiency game. I call it the Nickel Game

This also applies in projects where

everyone (engineers or workers) focus on
being efficient versus having an efficient
delivery system.

The Nickel Game

You are bored in Staff Meeting.

You start shuffling a bunch of nickels in your hand. Finally, you catch the attention of a few in
the group.
You folks are pretty competitive. How about playing a 3 minute game and see who is best?
Who can resist?

The Nickel Play: Time each person to do the flips

New Nickel Play: Time Each person again.

And so on..

Individual Efficiency
Decreases
System Efficiency Increases

Help the Group Understand Each Nickel was a

Project.

First Scenario: The impact of having every individual work to their highest efficiency
delayed the projects (nickels) so they all came out after a minute or so.
Second Scenario: When individuals gave up their own efficiency and focused on
moving the projects (nickels) the first project came out in 15 seconds and the last at
30 seconds (or so).
Ask the audience how many nickels were in the queue when they received them from
the first Scenario (ten).
Ask the audience how many unfinished tasks they have on their desk, in their file
cabinets, in their day planner, things they should be home doing right now? (much
more than 10).
Ask them if any one else is waiting for any of the tasks they should have already
performed? (of course).
Ask them if they understand the impact of their attempts at being efficient has on the
whole system they work in?

Try the Dollar Game: Uses Pennies, Nickels, Dimes,

Quarters, Dollar Coins

Dollar Game: Traditional Fashion

Play the game with ten coins of each.

Shuffle the coins and process as they come out of the bag.
Pass the coins along after ten flips
Record individual efficiency to do the 100 flips.
Record the completion time for the last coin of each type.
People already know how to WIN at getting the projects done. Its hard to stop them
from passing the work until all ten flips are finished.

Dollar Game: Small Batch Fashion

And so on..

Pass each coin along as its

flipped.
Record Individual time to flip all
100
Record Time last coin of each type
finishes.

Dollar Game: Based on Project Value

The Dollar Coins represent a project worth $100 Million in value

The Quarter Coins represent a project worth $25 Million
The Dime Coins represent a project worth $10 Million
The Nickel Coins represent a project worth $5 Million
The Penny Coins represent a project worth $1 Million
What now?

Would they change the sequence of which coin they worked on?

Advanced Dollar Game

Consider the situation were some of the five people in the Dollar Game is handicapped
when doing certain coins (can only flip with one hand).
The first Person is slow with Dollars
The second Person is slow with Quarters
The third person is slow with Dimes
The fourth person is slow with Nickels
The fifth person is slow with Everything!
How will you release work if the goal is to minimize flow time (start to complete) of each
project?