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27th International Conference of the TOC Practitioners Alliance ‐ TOCPA www.tocpractice.com
August 16‐18, 2016 Johannesburg, South Africa
Managing & Inspiring People
Konrad Bartel, OpsLogik Solutions, South Africa 17th – 18th August, 2016
27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Konrad Bartel Konrad Bartel studied Industrial Engineering & MBA, has 20 years experience as Production Manager / Director in the manufacturing environment and 16 years TOC Consulting experience in Marketing & Sales, Supply Chain, Manufacturing and CCPM Implementation. He worked with Goldratt Consulting on Viable Vision Projects. Konrad is also an Ontological Business Coach and implements TOC at organizations throughout South Africa and internationally
Mobile: +27 83 262 0062 Office: +27 21 843 3103
[email protected]
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Introduction
A comprehensive solution to Manage and Inspire People in a TOC managed company
• • • • •
What is the Problem with People in TOC? Understanding the Core Problem Developing the Solution – Manage & Inspire Details of the Solution – The MIP S&T Implementing Managing and Inspiring People S&T
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What is the Problem?
Two aspects to the Problem: How do we motivate / manage people in a TOC Business? You can buy a man's time; you can buy his physical presence at a given place; you can even buy a measured number of his skilled muscular motions per hour. But you cannot buy his enthusiasm...you cannot buy loyalty...you cannot buy the devotion of hearts, minds, or souls. You must earn these. Clarence Francis From: The Logical Thinking Process – H William Dettmer
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What is the Goal
We have a solution for Managing and Inspiring People – first part:
Harmony is gained through aligned company, team and individual ambitious goals
Arrie van Niekerk ‐ TOCPA Conference 2014 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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What is the Problem?
Two aspects to the Problem: Not aware of a comprehensive TOC based solution of how to manage people in a TOC Business. • While TOC has some ways to address human behavior with a set of processes called “Management Skills” (see the TOC TP books mentioned previously), there are some other necessary conditions of executing a great strategy that remain. • Choose one of the science-based behavior programs (e.g., Covey, Influencer) based on the most important current company needs. Dealing with Human Behavior – Gerald I Kendall - Chapter 18 ; TOC Handbook 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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What is the Problem?
Two aspects to the Problem: Not aware of a comprehensive TOC based solution of how to manage people in a TOC Business. •
Bringing other technologies / solutions are always a problem due to the misalignment between the Cost World approach and the Throughput World approach.
•
Change Management – People Resist Change!
Do people really resist change? • Theory 1 – Yes, the larger the change, the larger the resistance… • or Theory 2 – Yes, we resist all changes that will not benefit us
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What is the Goal
We have a solution for Managing and Inspiring People – second part:
A comprehensive Strategy and Tactic addressing all the People management issues aligned with the Generic S&Ts 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Develop the Solution
Do it RIGHT – Develop the Solution form basic principles Brought three companies together • Aerosud: ±600 people • Logo Print: ±120 people • Coetzee & Coetzee: ±20 People Developed the Solution using the Simplified TOC Analysis Roadmap
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Develop the Solution STEP 5
STEP 1 WHY CHANGE?
Performance Metric 2
Performance Metric 1
Performance Metric 3
STEP 4 HOW TO CAUSE THE CHANGE?
DEFINE GOAL / SUBJECT UDE 5 (2%) UDE 4 (3%) UDE 3 (10%) UDE 2 (15%) UDE 1 (20%)
Target Level
Current Level
UDE Conflict 3
Need
UDE Conflict 1
STEP 3 TO WHAT TO CHANGE?
Tactic Sufficiency Assumption
Copyright 2015
Action
UDE 3
S&T 5.X:
UDE 4
Action
UDE 1 Need
Action
Need
Action
Need
Goal
Action
Action Need
Action
UDE 2
Stop
UDE Conflict 2
Need
Goal
Core Conflict
DE 5 DE 3
DE 4 DE 2
STOP
Parallel Assumptions
S&T 5.X:
Need
Future Reality Tree
S&T 3.3: Sustain
Strategy
S&T 5.X:
Action
UDE 5
Necessary Assumption
S&T 4.X: Managing and Motivating People
Need
Goal
S&T 2.1: DCE: Reliability / Availability Competitive Edge S&T 3.2: Capatilize
Current Reality Tree
Goal
S&T 1: Ever Flourishing Company
S&T 3.1: Build
STEP 2 WHAT TO CHANGE?
GAP?
HOW TO CREATE POOGI?
DE 1 New Win/win Need
START Goal
Need
LEGEND Yes, but…
UDE = UnDesirable Effect
PUDE
PUDE = Potential UnDesirable Effect DE = Desirable Effect
START
STOP = Old “Rules” we must STOP using START = New “Rules” we must START using OBS = Obstacle IO = Intermediate Objective
Reference: Alan Barnard
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Understanding the Core Problem
“Define a problem precisely and you are half way to a solution” from “What is this thing called Theory of Constraints?” by Dr. Eli Goldratt
Let’s examine, what is the meaning of a “problem” • Intuitively, we understand that a problem exists whenever there is a GAP between our current reality and some desired objective. • What limits us from solving this problem or closing the GAP? • It must be that some unresolved conflict or compromise limits or blocks us from achieving the desired objective… • Therefore, defining a problem precisely must start with a declaration of the desired objective and the conflict that limits or blocks us from “Solving” the problem.
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Understanding the Core Problem
The Conflict Cloud - The Major Logical Tool for developing an understanding of a problem/conflict/dilemma AND developing a solution. B D Need
Action
A Objective C
D’ Need
Action
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Understanding the Core Problem
D
D’
B
C
UDE
UDE
UDE
D
D’
B
C A
A
UDE D
D’
B
C A
Core Conflict D
D’
B
C A
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Understanding the Core Problem
An Example:
Focus on Win for Customers & Consumers
Growth
Increase & Protect Sales
Take actions that improve our competitive advantage (Availability/Range, Cost/Inv,, Price, )
Profitably Grow the Company Improve or at least protect Profits
Take actions that increase margin & reduce costs (Efficiency, Range, Cost,, Price)
Stability 14
Focus on Win for Company & Shareholders
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Understanding the Core Problem
In order to make sure that we all agree on the problem we will use the “Three Cloud Process” to confirm the Managing and Inspiring People core problem – we are going to: • Identify your Managing People UDE, • Develop your conflict cloud, • Write you’re A, B, C, D & D’ on sheets and stick then on the big Cloud on the wall, • And we’ll see what it reveal to us! Please observe our behavior while we develop the Clouds and Core Conflict.
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Understanding the Core Problem
Sequence: Step 1: Write your UDE
Step 5: Transfer A, B, C, D, D’ to the A5 sized Card
A Objective
Step 2: Polish & re‐write your UDE
B Need Step 3: Develop your Conflict Cloud
C Need D Action
Step 4: Polish, Check sides & re‐write your Conflict Cloud
D’ Action 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Understanding the Core Problem
Step 1: Write Your UDE:
What is the biggest problem or undesirable situation that you have with Managing People? Step 2: The UDE has a clear syntax with clear guidelines: • • • • • • • •
It is a complaint about an ongoing problem that exists in your reality and because of this problem, you cannot perform better. It should be written in present tense. It is a description of the state, not an action. It is within your area of responsibility. Something can be done about it. It must not blame someone. It must not be a speculated cause. It must not be a hidden solution to the problem (wishful thinking of solving the problem). 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Understanding the Core Problem
Step 3: Develop the Conflict Cloud: D
B
A
What is the COMMON OBJECTIVE achieved by having B and C
What NEED of the system is endangered by the identified UDE?
What ACTION is taken to meet the Need B?
D ’
C
What NEED of the system will be jeopardized by the Action in D
What Action is taken to meet Need C – and jeopardize Need B?
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Understanding the Core Problem
Step 4: Polish… In order to …
I must … B
In order to …
I must …
D Need
Action
A Objective C
I must … In order to …
And check that: • D and D’ are in conflict • D jeopardizes achieving the need in C • D’ jeopardizes the need in B
D’ Need
Action
I must …
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Understanding the Core Problem
Step 4: Polish, Check sides & re-write your Conflict Cloud Check if your cloud must be flipped: Global / Effectiveness Side B
D Need
Action
A Objective C
D’ Need
Action
Local / Efficiency Side
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Understanding the Core Problem
Step 5: Transfer A, B, C, D, D’ to the A5 sized Card A Objective B Need C Need D Action D’ Action 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Validate the Core Conflict
Business, Dept. and Individual Goal Alignment
Growing Capabilities & Relationships
Empower, Motivate and Upskill people
Systemic & Procedural Control
Ensure procedural compliance and play the blame game
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Validate the Core Conflict Because empowering, motivating and up‐skilling people unlocks the infinite potential of the individual for the benefit of the individual and the business
Business, Dept. and Individual Goal Alignment
Growing Capabilities & Relationships
Empower, Motivate and Upskill people
Systemic & Procedural Control
Ensure procedural compliance and play the blame game
Empowering and up‐ skilling staff is in conflict with control for procedural compliance because: • we(I) lack knowledge on how our(my) behavior impacts on the Company, Dept. and my individual goal • there is misalignment between Company, Dept. and Individual goals
Because variability introduced by people must be substantially limited. The combination of environmental and individual differences significantly increase the unpredictability and magnitude of variability. Leadership has the biggest environmental impact. 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Validate the Core Conflict UDE
UDE
UDE
UDE
Full understanding by resources of the benefits or consequences of change are not known (Pot of Gold, Mermaid, Crutch, Crocodile)
UDE
Training not focused on Constraint
Training Quality (content & application)
Empower, Motivate and Upskill people
Ensure procedural compliance and play the blame game
Growing Capabilities & Relationships
Systemic & Procedural Control
People are not clear on what to focus on
Business, Dept. and Individual Goal Alignment
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The Core Conflict D – D’ Assumption
Empowering and up‐ skilling staff is in conflict with control for procedural compliance because: • we(I) lack knowledge on how our(my) behavior impacts on the Company, Dept. and my individual goal • there is misalignment between Company, Dept. and Individual goals
• “Not knowing my own contribution or thinking that my contribution is not recognized. • Not knowing how others should contribute or thinking that their contribution is recognized too much or too little. • Inherent conflicts on which rules to use to best contribute to the company goal. • Unresolved gaps between responsibility and authority (resulting in ongoing fire fighting). • Inertia or fear that is not verbalized, which block continuous improvement”. 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Breaking the Conflict
Business, Dept. and Individual Goal Alignment
Growing Capabilities & Relationships Systemic & Procedural Control
Provide people with the knowledge to contribute (Goals, capabilties, measurements and feedback)
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Breaking the Conflict
• “Knowing exactly how I should contribute and knowing that my contribution will be recognized. • Knowing exactly how others will contribute and knowing that their contribution will be recognized • All “rules” are aligned with the goal and strategy of the company. • Gaps between responsibility and authority are systematically identified and removed. • Constraint focused Continuous improvement process and culture is in place”. 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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The Solution: Manage & Inspire Injections Recognize Performance Communicate Goals
Eliminate the Blame Culture Management Change
Develop a Problem Solving Culture Person to Position Match Remuneration Aligned to Performance
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The Solution: Strategy And Tactics Entities 1
Projects Company S&T
Ever Flourishing Base Growth
Enhanced Growth
2:1 2:1 Reliability
2:2 Early2:2 Delivery
Comp. edge
Build
Capitalize
Comp. edge
Sustain
Capitalize
Build
3:1
3:2
3:3
3:4
3:5
3:6
3:7
High 3:1 DDP
Reliability 3:2 Selling
Expand 3:3 Client base
Load 3:4 Control
Capacity 3:5 elevation
Shifting to 3:6 Bonus Deals
Rapid 3:7 Project completion
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The Solution: Strategy And Tactics Entities 1
Reliable Rapid Response S&T
Ever Flourishing
Build
Base Growth
Enhanced Growth
2:1
2:2
Reliability Comp. edge
Rapid Comp. edge
Capitalize
Sustain
Build
Sustain
Capitalize
3:1
3:2
3:3
3:4
3:5
3:6
3:7
3:8
3:9
99% DDP
Reliability Selling
Expand Client Base
Load Control
Capacity Elevation
LT 1/4
RR Load Control
RR Selling
Expand RR client base
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The Solution: Strategy And Tactics Entities
Build 3:1 99% Due Date Performance
4:11
4:12
Management Attention
Inspiring & Managing People
5:12:1
5:12:2
5:12:3
Managing People Rollout
Management Change
Eliminating Blame
5:12:4
5:12:5
Goal Performance, Communication Recognition & Corrective Action
5:12:6 Problem Solving Culture
5:12:7
5:12:8
Person to Remuneration Position Match
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Manage & Inspire S&T Entity 4.1
Necessary Assumptions (NA)
• Implementing TOC in companies does not reach it’s full potential if the people factor is not addressed, • As people “resist change that they have a good reason to resist”, EFFORT is required to remove the layers of resistance, • for people to adopt the required changes voluntarily and with enthusiasm.
Harmony is gained by aligned company, team and individual ambitious goals (in Strategy aligned Growth, Relationships, Systemic & Procedural Control) 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Manage & Inspire S&T Entity 4.1
The Company adopts a people management approach based on Respect by implementing a zero blame tolerance, putting the right people in the right positions, Tactic giving them ambitious goals, knowing how they and others should contribute to achieve the goals and how they will be measured and acknowledged.
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Entity 5.1.2 Management Change
• Leadership (Executive management) is responsible for setting clear goals and direction for the organization. This creates a gap in terms of grasping the new concepts and the execution Necessary of the new management MOO. Assumptions (NA) • Management change is necessary because the MOO required for training, implementing & managing in a flow focused environment is vastly different from, and in conflict with, managing local efficiencies.
Management has changed – Respect is the Strategy new MOO and the potential of the company, team, manager and individual is unlocked. 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Entity 5.1.2 Management Change
Parallel Assumptions: • Leadership is required to change the Team/Department approach – from cutting cost & waste to understanding subordination • Set new Goals relevant to the department • Create a safe space for change to take place • Must be able to Un-learn and Re-learn – takes a lot to swop the cost world paradigm for the Throughput world paradigm. • Continual change must become part of life • Actively eliminate blame culture 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Entity 5.1.2 Management Change
Tactic: • Set the Local Goal(s), • Agree there is an Improvement gap, at the personal level, as well as team/department level, • Choose to make the change, • Agree I can solve all problems – Use Clouds & TP, • Show commitment, alignment with the new way, • Enable performance, leading from the front, • Live the No-blame & 6 layers of buy-in way.
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Entity 5.1.3 Eliminate Blame
"Let me speculate that you, like any other person, have been involved in relationships that were far from harmonious. Can you tell me what you think were the reasons for the disharmony?” I rush a few such relationships through my mind before I answer. "It is because the people I had the relationships with were too egotistical. They were looking mainly after their own interests and didn't care much how their demands affected me.” Since he doesn't ask further I say, "Now can you tell me what the third obstacle is?" He pauses. "The third obstacle is that we tend to blame the other party." Smiling he adds, "Exactly like you just did.” Chapter 7 – The Choice; Eli Goldratt & Efrat Goldratt‐Ashlag
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Entity 5.1.3 Eliminate Blame
I cannot stop myself from commenting, "It's not that I'm blaming. I'm just stating the facts." And then I ask, "In what way is blaming an obstacle?" "Blaming another person is not a solution . . ." I interject, "But it does point in the direction of the solution." "That is exactly the problem," he says. "In too many cases blaming points us in the wrong direction, in a direction where we will not find a good solution. Even if the person will be removed, in most cases the problem will stay." I check several such scenarios in my mind to verify if he is right. He might be. "Moreover," he continues, "blaming others pours fuel onto the fire. It is a recipe to ruin the harmony in the relationship." Chapter 7 – The Choice; Eli Goldratt & Efrat Goldratt‐Ashlag 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Entity 5.1.3 Eliminate Blame
• Blaming blocks the blaming person’s ability to think clearly and causes the person being blamed to feel they are not making a positive Necessary contribution or adding value to the company. Assumptions • It directs energy into protection mode and away (NA) from the reasoning required to find win:win solutions and move to the new management MOO
A blameless environment where high levels of candour is commonplace. People feel Strategy they are making a positive contribution by adding value and keep taking stability and improving actions 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Entity 5.1.3 Eliminate Blame
Tactic: Find the Win:Win solution: Capacitate people with the TOC TP tools to: 1. Effectively deal with day‐today and chronic conflicts, 2. Effectively deal with half‐baked solutions 3. Alignment of responsibility with authority.
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Manage & Inspire S&T Entity 5.1.3
Inner Dilemma Conflict Cloud 4 Need
5 Objective
1 Action
Do‐to‐day Conflict Cloud & Organizational Interest Conflict cloud 3 1 Need Action 5 Objective
3
2 Need
Objective
1
2 Action 4 Need
Action
3 Need
5 Objective
3
Action
Fire Fighting Cloud
Need
5
2 Need
Action
UDE Conflict Cloud 1
4
4
Action 2
Need
Action
Each type of cloud is solved by answering the relevant question to surface the Action, Need or Goal in the sequence as indicated by the number in the circle 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Entity 5.1.4 Goal Communication
Necessary Assumptions (NA)
• Making a contribution is the way that people’s security (stability) and satisfaction (growth) needs are met which in turn lead to motivated / satisfied people. • Knowing how to contribute and being recognized for their contribution is at the core of having motivated people. • People’s contribution must be towards achieving the global goal.
Every person know what the company ambitious goal is, the connection between Strategy their contribution and the company goal, what they must contribute and how their contribution will be measured. 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Entity 5.1.4 Goal Communication An Ever Flourishing Company
Goal
Manufacturing Projects Reliability Reliability Decisive Decisive Competitive Edge Competitive Edge Critical Success Factors Necessary Conditions
Company Culture and MOO alignment
Manufacturing capacity and capabilities
Harmony is gained by aligned company, team and individual ambitious goals
People Inspired to change and management effort is by a feather
Management Change
Effective Marketing and Sales
GOAL TREE – TOC TP
Capability to deal with increasing demand
Reliable Project capabilities
• Use the Goal Tree to cascade the Business goals down the organization • Necessary Conditions become the Goal for the next level • Business > Division > Department > Team > Individual
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Entity 5.1.4 Goal Communication
A few Notes on Goals & Setting Goals: • Goals are opportunites for Positive Regognition, • Goals must be set so that they can be achieved but still moving the “needle” • Nothing is more unequal than the equal treatment of unequals. (Attributed to Vince Lombardi) • Exploitation and Subordination must be clearly undestood
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Entity 5.1.5 Performance Recognition
• The correct actions need to be known Necessary • The incorrect actions need to be known Assumptions • Correct Actions need to be taken and done in (NA) the correct way • The incorrect actions must not be taken
Every person in the organization do what Strategy they should do and don’t do what should not have been done.
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Entity 5.1.5 Performance Recognition Consequences that increase behavior
Behavior Driver: • Schedule, • Task list • Instruction
Get something you want
Positive Reinforcement
Avoid something you don’t want
Negative Reinforcement
Get something you don’t want
Punishment
Lose something you have
Penalty
Behavior
Consequences that decrease behavior
Work Once
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The Company High Level Effectiveness Model
T Converted Sales Process
T Purchased Procurement
Order Book
T Picked Raw Materials
Operations
Distribution
Net Throughput Generated Debtors & creditors
T Released Procurement
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Control Point Measurements
Little’s Law Work In Process = Lead Time X Average Flow Rate Bottleneck, CCR, System Flow
Non CCR Flow / Protective Capacity
Example ‐ Manufacturing company Copyright 2016
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Control Point Measurements
Little’s Law
Example ‐ Projects company
Work In Process = Lead Time X Average Flow Rate Sales CCR Flow Conversion
Sales WIP (Future Planned)
Execution WIP (Historical)
Project Execution CCR Flow KOM ARC DsgnUpd2894 EoHDeve2808
WMS TactCat2345
ARC EoHExpD2834
EMC FSmnfOM2632
100%
% P r o je c t B u f fe r I n c u r s io n
90% StyC2897
80%
BRU-RelMech2867
70% eCon2902EME-GenAdpt2883
60% RDM-20Slide2907
PAT-FneAstr2886
50%
40%
30%
20% TMT-iCam90L2884
10% EME-InsPads2908
0% 0%
Copyright 2016
10%
20%
EMC-fSv1Mnf2895
30%
40%
WMS-TowReel2572
50% % Critical Chain Complete
60%
70%
80%
90%
1...
Printed on Thursday, August 11, 2016
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Sales Process
Order Book
Procurement
Production
Debtors & creditors
Market
Control Point Measurements CCRs
Procure to Order Flow Rate
Lead Time
WIP
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Entity 5.1.5 Problem Solving Culture
• People tend to see more clearly when “the water Necessary level drops” Assumptions • creating a culture of problem solving at all levels (NA) frees up management time/effort and • develops skills to do proper problem solving
A self generating problem solving culture Strategy exists aligned with achieving the company goals
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Protective Capacity Measurement
Cell Name
PC revealed
Res pons i bl e
Date
84
Rate
parts/day
100 90 80 70 60 50 40 30 20 10
24 ‐ 6:00
23 ‐ 5:00
22 ‐ 4:00
21 ‐ 3:00
20 ‐ 2:00
19 ‐ 1:00
18 ‐ 0:00
17 ‐ 23:00
16 ‐ 22:00
15 ‐ 21:00
14 ‐ 20:00
13 ‐ 19:00
12 ‐ 18:00
11 ‐ 17:00
10 ‐ 16:00
9 ‐ 15:00
8 ‐ 14:00
7 ‐ 13:00
6 ‐ 12:00
5 ‐ 11:00
4 ‐ 10:00
3 ‐ 9:00
2 ‐ 8:00
1 ‐ 7:00
0 ‐ 6:00
0
Cum parts moved Cum moved+Cum PC
Notes
Duration of no
Reason(s) for not achieving flow rate
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Defining Exploitation Gaps
Sales Process
Order Book
Procurement
Production
Debtors & creditors
Market
Increasing Protective Capacity
Procure to Order
• • •
Ideally a company’s system constraint should be in the market The further away the function / resource from the market the more protective capacity is required – refer Balanced Flow vs Balanced Capacity Concepts In this example “Sales” must add significant more “revealed protective capacity” than any other function
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Identifying and Defining Improvement Projects Reasons for Red & Black:
•
Primary = Buffer performance Secondary = CCR
Pareto Analysis
• Reason 3 Potential Reason 2 Potential
• •
Reason 1 Potential
• •
Associated with every Control Point Measurement and with every NON‐CCR Protective Capacity is a “reason for red, black or ‘rate not achieved’ ” recording mechanism This mechanism is used to do a Pareto analysis of “reason for red, black or ‘rate not achieved’ ” The Required improvement GOAL is defined A Cause and Effect root cause analysis is done for each Reason’s existence and the potential capacity of the improvement is determined Sufficient actions are planned for improvement to ensure the required protective capacity Develop the Project Charter for each improvement project
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Entity 5.1.7 Person to Position
Necessary Assumptions (NA)
• Matching persons to positions is necessary to ensure that the right person is in the right seat – this will achieve goals.
“The right person on the bus and in the Strategy right seat and continualy improving”.
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Entity 5.1.7 Person to Position
Tactic: To align people to positions Formal HR policies need to be defined and/or implemented by means of: • In depth defining of job profiles (to get the right guideline in order to get the right person on the bus); • Recruitment & selection process that is aligned with job profiles; (getting the right person on the bus) • In aligning persons to positions, gaps are identified which will be addressed by means of training & development. • Clear career paths for individuals can be developed which is aligned to company and individual goals • Establish a paradigm and processes to enable upward mobility
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Entity 5.1.8 Remuneration
• The local efficiency based management paradigm often lead to a fragmented approach to remuneration. Necessary • The flow focused management paradigm Assumptions require workforce flexibility which is often (NA) hampered by remuneration policies. • It is also important that employee’s goals are aligned with the company by meeting stability and growth needs.
The company’s remuneration system is Strategy aligned with a Flow focused Mode of Operation 27th International Conference of the TOC Practitioners Alliance ‐ TOCPA
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Entity 5.1.8 Remuneration
Tactic: Implement a Job profile aligned remuneration system. Implement a Remuneration system that is aligned with the growth in profit of the company. Either Gain Share or Specific performance linked to the Performance Recognition System
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Entity 5.1.1 Implementation
• Everything can’t be done at the same time. Inspiring and managing people will go through phases of application as the implementation of Necessary the TOC intervention progress. Sequence is Assumptions important! (NA)
People are Inspired to change and Strategy management effort is by a feather
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Entity 5.1.1 Implementation
Parallel Assumption: • Management Change, Eliminating Blame and Goal Communication are cross functional, higher management interventions that, if done quickly, will align the management team, set the stage for a growth culture, and support achieving tipping point. As the Implementation roll‐out progress and the flow focused MOO become the norm management will be met with new requirements in managing their people – continual management improvement must become the norm. • As the TOC solutions are implemented and the transition in MOO take hold Performance Recognition & Corrective Action and Problem Solving Culture should be implemented as the MOO change become relevant to an environment. • Person to Position Match and Remuneration are HR & Executive interventions that will take time to develop and implement.
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Entity 5.1.1 Implementation
Tactic: The Managing and Inspiring People Roll‐out is done as follows: 1. Management are trained in and adopt the Management Change, Eliminating Blame and Goal Communication entities. 2. Management adopt the Performance Recognition & Corrective Action and Problem Solving Culture and apply it to themselves. 3. Performance Recognition & Corrective Action and Problem Solving Culture are implemented as the functional roll‐outs (DBR, DBM & CCPM) take place 4. Executive management and HR immediately start the Implementation of Person to Position Match and Remuneration entities
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