Rockland Manufacturing

There's no doubt that the Theory of Constraints (TOC) and associated conflict resolution methods have had a significant impact on throughput, inventory levels, and profits at Bedford, PA-based Rockland Manufacturing. The small ($10 million revenue) manufacturer of attachments for heavy construction equipment made more profit in the two years following its TOC implementation that in the previous 10 years. Lead times are down, business is up, and the workers and supervisors are extremely pleased with how work flows through the plant without the level of chaos, confusion, expediting and waste that previously characterized daily life there.

But that's only half the story. Managers at Rockland are continuing to hone their TOC skills and they are applying the conflict resolution process to their home and family lives as well.

Rockland is a job shop. Although it may make the same product from time to time, most orders require special fittings or brackets to attach to various pieces of equipment. Seldom does the company make more than one of any item at a time. In an industry where lead time is important, Rockland tried stocking finished and semi-finished goods, as well as other methods to reduce lead time. The results were minimal. When business is good, lead times get longer and customers get unhappy. There is a constant pressure to "get this one through quickly," and this disrupts any plans that might have been in place. People in the plant never know what to work on next.

After attending TOC training at the Goldratt Institute, Rockland began the process of changing over to a Drum-Buffer-Rope method of operation. The plant was in such disarray that bottlenecks showed up in many places at different times. The company made a decision to designate the fitting shop, where the various pieces come together, as the constraint (drum). After fitting, the product is finished and shipped. Placing the control point near the end of the process helped insure that production could be timed to meet shipping commitments. Following through from there, they set up the buffers and established communications methods for laying out schedules and tracking progress.

The TOC roll-out took place in August 1995. By October, Rockland was showing a 25% increase in throughput and a 35% reduction in WIP inventory. Over the next 18 months, the company handled approximately 2,500 customer orders and only had one late shipment - due to a clerical error. It has been able to increase its business, add onto the plant and offices and pay increasingly higher profit-sharing bonuses each year since adopting TOC.

At their weekly staff meetings, members of the Rockland team practice their TOC skills by bringing in conflict situations and applying the "evaporating cloud" method to resolve the problem. Each week, a team member describes a situation and either explains his or her resolution or works with other team members to develop a solution. Many of these exercises involve home and family situations.

Two of the team members are married to each other. The couple wanted to start a family but was having trouble resolving the career-versus-family decision. Going through the evaporating cloud exercise revealed the real issues and suggested an alternative that turned out to be the best answer for all concerned.

In another case, one team member's wife wanted to buy two horses but the husband could see many objections to this idea. The conflict resolution process answered all the objections and helped develop a plan that was comfortable for everyone. Another employee worked out the solution to a problem involving the family farm and how to preserve this legacy while eliminating some difficult support issues.

As one team member said, the TOC methodology has given them "the tools to solves the problems that may come up." As the old saying goes: Give a man a fish and he'll eat for one day. Teach a man to fish and he'll eat for a lifetime. The TOC method is definitely in the latter category.

Copyright © 1999 Midrange ERP

A representative of Rockland Manufacturing presented the company's story at the Jonah Upgrade Workshop in March 1997. That presentation is available on video (JSA-2).