James R. Holt, Ph.D., PE. Jholtwsu.edu http:www.vancouver.wsu.edufacholt

1
James R. Holt, Ph.D., PE.Jholt_at_wsu.eduhttp//www
.vancouver.wsu.edu/fac/holt/
Constraints Management
The Theory of Constraints Physical Process Games
The Nickel Game Instructions (Watch these
instructions in to see
the animations)
Washington State UniversitysEngineering
Management Programhttp//www.cea.wsu.edu/engrmgt/
2
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.
3
The Nickel Game
H
H
H
H
H
H
H
H
H
H

• 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?

4
The Nickel Play Time each person to do the flips
5
New Nickel Play Time Each person again.

• Individual Efficiency Decreases
• System Efficiency Increases

And so on..
6
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?

7
Try the Dollar Game Uses Pennies, Nickels,
Dimes, Quarters, Dollar Coins
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
8
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.

9
Dollar Game Small Batch Fashion

• 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
H
H
H
H
L
L
L
And so on..
H
H
10
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?

11
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?