KNOWLEDGE PROVIDERS
MONEY MAKER MACHINE
 
  5 STEPS
HOME MMM INTRODUCTION
 
   
   
   
   
   
 
Step 1 What limits Bill and John the most (= constraint!) to produce as much as possible?
The handle. If the handle stops, then the production of money stops.
Once we have established our 'biggest limitation' (the constraint) we should make sure, that this resource never stops. We have to use this resource to its maximum.
Step 2 How can we exploit the MMM on to his full extent?
The handle should never stop. Squeeze the maximum out of it (STMOOI).

Do you have any idea, that if the MMM produces bank notes of $ 1000 , what a tea break of 15 minutes costs, or a lunch break of 45 minutes?

Are we happy now? Let's have a look at Bill. What is his role?

Bill should make sure, that at any time the machine is provided with the raw materials, in this case the printing paper for the bank notes. He should never be the reason, that John stops turning the handle (= producing money).

Step 3 Subordinate Bill to the handle
Organize everybody around John, to support the handle. Of course we want to make today more than yesterday and tomorrow more than today. We should continuously improve! How can we produce more ?
  • By buying another ladder ?
  • Adding another man which turns the handle ?
  • Replace the ladder by an elevator ?
  • Automate the handle ?
  • Work 24 hours per day in stead of 8 ?

Where would you primarily invest, to get more out of your money making machine factory? By increasing the capacity of the handle! Any improvement to let the handle turn around more is giving us more money.
Step 4 Break your constraint
Invest to get a substantial increase of the output of the MMM.

We found our biggest limitation, we made sure the handle never stopped, we convinced Bill that he should support the handle, we have even broken the constraint by working 7 days of 24 hours per week. Are we finished?

What about continuous improvement?

The following step straight after we have exploited the constraint to its maximum and have even implemented our improvement, is establishing the next limitation in our Money Making Machine.
Step 5 Go back to step 1.
Find your next limitation.