We are continuing our series based on The Goal by Eliyahu M Goldratt and the Theory of Constraints. {This series was co-written with Brad Stillahn.}

Dr. Lisa: Back to the process for handling a “yes, BUT”. We are saying “yes” to the solution, and the “BUT” is a negative branch reservation, a negative we anticipate if we go forward with the solution. So the first step is to identify which part of the solution your concern stems from. State this explicitly. Next, indicate what your concern is, what negative could occur (called Negative Branch Reservation). Now together you can figure out that (1) either that you misunderstood the solution or (2) that you are correct that the negative could happen. If so, how could we modify the solution to eliminate completely or substantially the possibility of the negative?

Brad: That sounds a little theoretical. Do you have an example?

Dr. Lisa: Sure. When we are doing the Velocity Scheduling System with a machine shop, someone in the management team will often have the idea to do preventative maintenance. In this example, this is the “part of the solution the concern stems from”. Someone will respond that there isn’t enough capacity to do preventative maintenance without being late on orders. This is the concern, the negative that could occur.

Brad: What’s the solution to trim the negative branch reservation?

Dr. Lisa: To do both — to complete ALL the orders on-time AND do the necessary preventative maintenance. The Detailed Planning portion of the Velocity Scheduling System is what we use to see and plan for opportunities for preventative maintenance while maintaining 100% due date performance.

“Dealing with yes, BUT’s” is one of the bonus videos included in the Velocity Scheduling System which is based on Goldratt’s Theory of Constraints and Drum Buffer Rope.

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Here’s to maximizing YOUR profits!

Dr Lisa Lang

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