3 Tier
The CTM Make/Ship Loop: Change Structure

In a business with a manufacturing loop, the move to-wards world class manufacturing status or a CTM approach calls for changes and improvements to take place in 3 distinct vertical segments within the Make/Ship loop.

We call this "change structure" the 3 Tiers or Bricks for change.

The question is always: Where do we start — which brick first?

The 3 Tiers for change ...

A CTM cycle time loop is a horizontal view or slice across a piece of the total business process — in this case the Make/Ship Loop.

In the illustration, we are segmenting the change activities vertically in the Make/Ship Loop and defining the "types" of changes that must happen in this slice of the business.

  • Tier 1 — Strategic Process Changes

    Change in this Tier involves both systemic and physical changes to the business processes and the way the business is operated and organized.

    Another term for the Tier 1 change is "Business Re-engineering" or "Process Re-engineering".

  • Tier 2 — Change/Improvement Projects

    Before an organization can fully realize the benefits of re-engineering its planning and control systems, its process layout and the resulting organizational structure, it must be "entitled" to operate such systems and be entitled to do business in this new fashion by undertaking many improvement (or change) projects. We call this the Tier 2 activities.

    In Tier 2, a range of change/improvement projects must be undertaken to evolve the manufacturing process to-wards a perfect manufacturing process.

  • Tier 3 — Operating Practise Changes

    As the vision of a manufacturing pull system is communicated and understood, and as re-engineering and improvement changes are planned and executed in Tiers 1 & 2, it will be necessary to change the operating practises in the manufacturing process.

    The operating practises in Tier 3 concern the role of controlling and maintaining the new manufacturing process and developing a continuous improvement environment.

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