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| Foreword | |
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| Preface | |
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| Acknowledgments | |
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| Introduction: Deep Truth | |
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| The Need to Get Smarter | |
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| Are We Even Playing by the Right Rules? | |
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| Area 1: Planning and Materials Management | |
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| Area 2: Costing Systems | |
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| Area 1 + Area 2 = Big Problems | |
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| The Rise of the New Normal | |
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| The Push-and-Promote Problem | |
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| The Need for Flow | |
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| Variability-Enemy Number One of Flow | |
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| The Types of Variability | |
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| Demand Variability | |
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| Supply Variability | |
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| Operational Variability or "Murphy" | |
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| Management Variability | |
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| Getting Smarter-A Basic Blueprint for Change | |
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| Install the Right Thoughtware in the Organization | |
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| Become Demand Driven | |
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| Deploy Smart Metrics-Rules for the Smarter Way | |
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| Install Thoughtware in the Organization | |
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| Can Our Organizations Think Systemically? | |
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| Modern Organizations-Conflict Factories | |
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| Conflicts and Oscillation | |
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| A Short Story about Oscillation | |
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| The Real Definition of Waste | |
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| Becoming Demand Driven | |
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| Push and Promote to Position and Pull | |
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| Accepting the Changes Inherent in the New Normal | |
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| Embracing Flow and Its Implications | |
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| Designing the Demand Driven Operating Model | |
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| Placing Decoupling Points | |
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| Placing Control Points | |
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| A Decoupling and Control Point Example | |
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| Protecting Decoupling and Control Points | |
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| Demand Driven Stock Buffers | |
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| Demand Driven Time Buffers | |
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| Demand Driven Capacity Buffers | |
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| Bringing the Demand Driven Model to the Organization | |
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| Operating and Sustaining the Demand Driven Model | |
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| Introducing Smarter Metrics | |
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| The Search for a Deeper Truth | |
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| Quantifying the Performance Gap | |
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| Smarter Metrics | |
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| Oregon Freeze Dry | |
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| Jamestown Container Company | |
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| The Results | |
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| LeTourneau Technologies, Inc. | |
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| M.C. Gill Corporation | |
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| Lessons from the Four Companies | |
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| How Do We Know What's True? | |
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| The Scientific Method | |
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| Monthly Meeting of "Company Normal" | |
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| Using Consistent Terminology | |
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| What Is a Scientific Fact? | |
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| What Is a Theory? | |
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| What Is Proof? | |
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| What Is Scientific Proof? | |
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| Back to the Scientific Method | |
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| Unit Cost-Centric Efficiency-A Deep and Universal Truth | |
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| Efficiency, Flow, and the Right Measures | |
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| The "Right" Measures | |
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| Defining Cost | |
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| Our Current Accounting Measuring Mess | |
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| The Proliferation of ERP/MRPII | |
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| The Growing Distance between the Front Office and Operations | |
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| The Fading Away of Management Accounting | |
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| An Increase in Complexity | |
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| The Shift from Linear to Nonlinear Systems | |
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| Silo Thinking | |
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| Challenging a Deep Truth by Definition Shakes Up the Status Quo | |
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| The Evolution of Flow and ROI as Strategy | |
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| The Birth of Product Costing | |
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| The Birth of Decentralized Management | |
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| An Accelerant-Andrew Carnegie | |
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| The Rise of Wholesale Distribution and Large-Scale Retail | |
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| The Birth of Conglomerates and Management Accounting | |
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| Automation and the Death of the Craftsman | |
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| Ford versus General Motors-A Lesson of Relevancy | |
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| How Did GM Beat Ford? | |
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| The Birth of Push and Promote | |
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| Systemizing the Management of ROI | |
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| The Emphasis on GAAP and the Rise of Unfocused Improvement and Outsourcing | |
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| A Case Study-The Boeing Dreamliner | |
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| The Boeing Dreamliner | |
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| Complexity Science and Supply Chains | |
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| The Newtonian Way | |
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| The Push beyond Newton | |
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| Complexity | |
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| Chaos and Complexity Theory Maturation | |
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| Supply Chains as Complex Adaptive Systems | |
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| The Simplicity in Complexity | |
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| Understanding Complex Systems | |
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| What Makes a System Complex? | |
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| Complex Systems Are Nonlinear | |
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| The Move beyond Complexity Theory-Complex Adaptive Systems (CAS) | |
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| Boundaries | |
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| Coherence | |
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| The Edge of Chaos | |
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| Self-Organization and Emergence | |
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| Emergence and Innovation | |
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| Self-Balancing Feedback Loops Maintain Stability | |
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| Resilience and Rigidity | |
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| A Complex Adaptive System Example-Company Normal | |
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| A Reference Example for Complex Adaptive Systems | |
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| Connections and Interactions in Nonlinear Systems | |
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| CAS and the Demand Driven Operating Model | |
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| Data Collection and Feedback Loops | |
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| Demand Driven and Resiliency versus Rigidity | |
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| Summary | |
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| Conclusion | |
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| Smart Metrics | |
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| Managing in a Pareto World Calls for New Thinking | |
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| The Power of Pareto and Strategic Buffers | |
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| Stock Buffers, Pareto Analysis, and Smart Metric Objectives | |
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| The Purpose and Size of Each Strategic Stock Buffer Zone | |
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| Strategic Stock Focused Improvements | |
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| Flow Indexes | |
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| Capacity Buffers, Pareto Analysis, and Smart Metric Objectives | |
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| A Paretian View of Resource Capacities | |
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| The System and Paretian View of Resource Capacity | |
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| The Implications of the Sales and Operating Plan for Strategic Capacity Investment | |
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| Cost, Volume, Profit Relevant Range Is Defined by the Scarce Capacity Resource | |
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| Allocating Scarce Capacity to the Market Based on Strategic Contribution | |
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| Prioritizing the Product Mix by Throughput Dollar Rate Changes the CVP Graph | |
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| Calculating the Value of Finding More Lathe Capacity | |
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| Relevant Information for Strategic Outsourcing | |
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| The Case for Acquiring Internal Lathe Capacity | |
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| A Summary of the Financial and Nonfinancial Factors of Outsourcing or Capital Investment | |
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| The Third Alternative-Using Smart Metrics to Find Capacity | |
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| Summary on Strategic Investments in Capacity and Stock | |
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| The Scheduling Implications of Stock Buffers | |
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| Stock Buffers' Role in Execution | |
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| Control Points and Resource Scheduling | |
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| Time Buffers and Reliable Schedule Execution | |
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| Time Buffers as the Execution Feedback Loop for Manufacturing | |
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| Time Buffers Require Ten Zones | |
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| Time Buffers During Work Order Execution | |
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| Minimizing Control Point Disruption | |
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| Schedule Execution Coherence and Priority Alignment | |
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| Assigning Roles and Responsibilities | |
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| Larger, More Complex, Multisite System Control Requirements | |
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| The Cheat Sheet for a Demand Driven Performance System | |
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| Ask and answer five key questions hourly, daily, weekly, and monthly | |
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| Ensure the five critical data capture points to provide the smart metric answers are timely | |
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| Plan an executable schedule focused on system flow and the market lead-time strategy | |
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| Expect reliability, stability, and speed | |
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| Remove cost-centric competing measures | |
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| Summary | |
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| Performance Measurement Built on a New Deep Truth | |
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| The Need for Steady Feedback | |
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| Focus on Improvement | |
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| A Final Thought on Information Technology | |
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| More on the Strategic Replenishment Buffers of Demand Driven MRP (DDMRP) | |
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| Index | |