Evaporating Cloud - Example

Example

Goldratt has illustrated the use of the evaporating cloud technique in a discussion of the Economic production quantity model, as applied to a production line. The prerequisites are to run large batches (node D) and yet to run small batches (node Not-D). These are clearly in conflict. The requirement that D is trying to meet is to reduce setup cost (node B), whereas the Not-D prerequisite is intended to reduce carrying cost per unit (node C). Both requirements are aimed at the objective (node A): to reduce cost per unit.


The assumed causal reasoning between the conflicting D nodes is something like “there is no way we can run large batches and small batches at the same time.” This conflict can be challenged by distinguishing between production batch size (between setups) and transfer batch size (between workstations), and so allowing different sized batches for different purposes.

Read more about this topic:  Evaporating Cloud

Famous quotes containing the word example:

    Our intellect is not the most subtle, the most powerful, the most appropriate, instrument for revealing the truth. It is life that, little by little, example by example, permits us to see that what is most important to our heart, or to our mind, is learned not by reasoning but through other agencies. Then it is that the intellect, observing their superiority, abdicates its control to them upon reasoned grounds and agrees to become their collaborator and lackey.
    Marcel Proust (1871–1922)