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James R. Holt, Ph.D., PE. Jholt@wsu.edu http://www.vancouver.wsu.edu/fac/holt/

Constraints Management. James R. Holt, Ph.D., PE. Jholt@wsu.edu http://www.vancouver.wsu.edu/fac/holt/. The Theory of Constraints: Physical Process Games. The Dollar Game Instructions (Watch these instructions in <Slide Show><View Show> to see the animations).

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James R. Holt, Ph.D., PE. Jholt@wsu.edu http://www.vancouver.wsu.edu/fac/holt/

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  1. Constraints Management James R. Holt, Ph.D., PE.Jholt@wsu.eduhttp://www.vancouver.wsu.edu/fac/holt/ The Theory of Constraints: Physical Process Games The Dollar Game Instructions (Watch these instructions in <Slide Show><View Show> to see the animations) Washington State University’sEngineering Management Programhttp://www.cea.wsu.edu/engrmgt/

  2. Play the Dollar Game (Only after you have played the Nickel Gamewww.vancouver.wsu.edu/fac/holt/em530/Docs/NickelGame.ppt) • We learn much from the Nickel Game: • Local Efficiency is not all it’s made out to be • Global Efficiency usually requires jeopardy of Local Efficiency • Keeping work moving prevents others from waiting (global efficiency approached) Now, let’s tackle a few other issues:Communication, Value, Planning

  3. Try the Dollar Game: Use Pennies, Nickels, Dimes, Quarters, Dollar CoinsUse One big Bag or Bowel with coins all mixed to start. H H H H H H H H H H L L L L L L L L L L H H H H H H H H H H L L L L L L L L L L H H H H H H H H H H

  4. Dollar Game: We Know What to Do • Play the game with ten coins of each denomination. • Shuffle the coins and process as they come out of the bag. • Pass the Coins the same as the Small Batch Version of the Dollar Game • Don’t give any other instructions; they know what to do. • But, after each ten seconds, call out, “FREEZE!” where every one stop immediately. • While frozen, the finished coins are sorted to see if there is a completed project yet. • If there are four coins of the same denomination, they form a completed project. Remove those four coins and record visibly the value of the coins (completed project) for that period. If more than one project is completed during that ten seconds, record the several completed projects and note the total for the period.

  5. Dollar Game: Small Batch Fashion Completed Projects (need four of same type) L • Pass each coin along as its flipped. • Record Individual time to flip all 100 • Record Time last coin of each type finishes. H H H H H H L L L L L L H H H H H L L L L L And so on.. H H H

  6. 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 • Continue play without any discussion for at least three ten-second periods. If the group doesn’t start asking questions, you can act disappointed about the value of completed projects over the three periods. • Keep playing ten-second intervals until the group asks, “What is going on here? Why didn’t you tell us the rules?” Reply, “This is just like Reality!” • Lead a discussion about, Communication, Planning and Work Priority.

  7. 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?

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