00:00Hello, I'd like to talk to you about the two-for-one rule.
00:03This is a rule for reducing work in process and lead times in manufacturing systems.
00:08And it's neither lead manufacturing, nor six sigma, nor theory of constraints,
00:12but in fact it's pertinent to all three ideas,
00:16since all of them try to reduce whip and reduce cycle times.
00:22The idea is extremely simple.
00:25What we do is impose the following rule.
00:26For example, you can only launch one new work order in the system
00:30once you have finished two work orders.
00:32You must finish two work orders before you're allowed to launch a new work order in the system.
00:37Therefore, two things go out for one thing coming in.
00:40And as a result, the number of work orders and therefore the number of products in your factory
00:43will be very quickly reduced.
00:46And it's very easy and simple to control.
00:49It's very easy for people to understand, and we found people love it.
00:54And this is, it might sound sort of brutal or strange or simplistic,
00:59but it simply is our answer to the fact that nearly everybody we talk to in the industry
01:04admits to having either twice as much work in process as they should have,
01:08or four times as much as they should have.
01:10So to reduce by a factor of two or to reduce by a factor of four,
01:14why don't you try the rule two for one?
01:16It works, and it's very easy.
