Business Basics
Home Page

Who is Bill Gaw?
And why should we
listen to him?


lean manufacturing principles and techniques training

A training program that gains employee understanding and commitment
Lean Manufacturing Training Program

If you want to get to the top of the latter, forward this Web page to your CEO/HR
Mfg. Mgmt. Development Program

Planning Vs. Execution - Part 2 of 5

Part 1  Part 2   Part 3  Part 4  Part 5

Get Bill Gaw's Lean Manufacturing Book
$15.00 Click Here

 Book: "Back to Basics"


privacy policy



Other Training Options:

Lean Sigma Assessment

Lean Six Sigma Implementation

Lean Six Sigma, Certification Program

Lean Six Sigma Forum

Lean Manufacturing Basics

Lean Manufacturing Assessment

Lean Manufacturing Transformation Training

Shop Floor Control

Lean Manufacturing Principles and Techniques

Lean Manufacturing Simulation Game

Lean Manufacturing Certification Program

Lean Manufacturing

Kaizen Management Training

Lean Manufacturing Problems and Solutions

Lean Manufacturing Seminar-in-a-Box

Supply Chain Management Training Program

Strategic Planning Training Program

Thinking-Outside-the- Box Workshop

Lean Management PowerPoint Training Modules

Lean Manufacturing

Lean Manufacturing




The theory of constraints (TOC) has a way of present­ing a problem, describing it as a conflict between two contradictory actions, each of them truly required for the same objective.


On the one hand, you wish to plan carefully and in detail all the actions required for effective synchroniza­tion. In our complex systems, we absolutely need that kind of synchronization to achieve the optimum per­formance of the organization as a whole.

On the other hand, our organizations are impacted by a high level of uncertainty. Some call that "Murphy." The immediate result of Murphy's activity is that we can­not strictly follow the planning. So, in order to deal with the uncertain nature of our environment, we need to override the schedule.

The life of most people in operations can be described by that conflict—we should plan and, at the same time, we should override the plan.

Nowadays we have APS (advanced production and scheduling) systems and powerful computers, meaning we can now replan in no time. That means that when­ever Murphy affects us, we can replace the old planning, which does not take into consideration the specific Murphy activity and generate a new optimal plan that does take into account the disrupting event.

In this way APS eliminates the distinction between planning and execution.


But this new technological capability generates haz­ards of its own. We can now present a somewhat differ­ent conflict that characterizes the decision-maker at the execution stage.


Again, the conflict is stated in the D and D' boxes. On the one hand, you wish to keep to the original sched­ule as closely as possible in order to preserve the under­lying objectives (like the due dates and expense level) thus keeping the system safe and stable and, most im­portantly, maintaining predictable performance. Is it important to have predictable performance? Certainly, you need it when you make any commitment to your customers. You wish to be certain you can meet the com­mitments once you made them. You don't want to be forced to change your commitments whenever Murphy is around. It is bad for the lasting reputation and suc­cess of your business.


Just to illustrate the point, annual budgeting is a spe­cial type of planning. Would you like to change the an­nual budget every time an unexpected event occurs?

On the other hand, in order to truly perform best, you must update the planning. Well, as this happens quite often, and considering the complex synchronization that is required, substantial changes are expected. The new planning is better equipped to extract the most from the system. And we like that to support the ultimate objec­tive, stated in box A, to drive the organization to success.


Part 1  Part 2   Part 3  Part 4  Part 5

Bill Gaw's Lean Manufacturing & Six Sigma Bulletin (LMSSB)

To stay current on Lean Manufacturing and Six Sigma knowledge and implementation know-how, subscribe to Bill Gaw's Lean Manufacturing Six Sigma Bulletin and you'll receive his weekly solutions to the reasons why 80% of lean initiatives fail to meet expectations. And as a bonus we'll send you a download copy of our eBook, "Thinking-Outside-the-Box.". (All at no cost of course.).

 Simply fill in your first name and email address and click on the bar below:

        Your personal information will never be disclosed to any third party.

First Name:
Your E-Mail:

Here's what one of our 15,000 plus subscribers wrote about the LMSS Bulletin:

"Great manufacturing articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."

               Kerry B. Stephenson. President. KALCO Lighting, LLC

Knowledge and implementation know-how you'll not find in the
books at neither in the APICS Package 
nor the Harvard Business School Press.  

Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596 

© 2000-2013 Business Basics, LLC