International Conference of the TOC Practitioners Alliance - TOCPA www.tocpractice.com
09 November 2016, UK
BA Systems UK- Case Study
Antony Hynd, Russell Briston, BA Systems, United Kingdom 09 November, 2016
Brief bio
Antony Hynd Managing Director
Russell Briston Pre-Construction Manager
Company Intro Who are we? •
•
Manufacture & Installer of Stainless Steel, Glass Aluminium Balustrade Products throughout the UK.
Projects up to £1 Million in Revenue
Key Facts
£6 million Projected revenue for 2016-17
25 Staff Full time excluding installers
90% Business within the Greater London area
17 Years Established in the UK
What We Stand For
Balustrades for the Construction Industry – focused on Rapid
Hassle-Free Design and
Installation. Market-leading design and manufacture
Guaranteed Timeline Assurance
with on large-scale projects. Design-led solutions in glass, stainless steel and extruded aluminium.
Project Success.
We Deliver
Norwich Head Office
Cad Design Dept.
TIG Welding Tube Fabrication.
Automated Tube Drilling.
Project – Care Home, Ascot.
Project – Care Home, Ascot
Project – Care Home, Ascot.
Project – Greenwich Millennium Village
Project – Greenwich Millennium Village
Project – University of West London
Find out More Online…
basystems.co.uk
FACT CHECK - Challenges In Construction
• Rife with uncertainties & unknowns • Poor due date performance • Client requirements subject to last-minute-change • Rework and snagging • Traditionally an industry where conflict is par for the course – within and between companies..
• Measurements force Companies to achieve local optima…
History with TOC Prior to 2015 Introduced to “The Goal” Video
Audio book made available to staff
Removed Multi-Tasking in Production
Engaged with Goldratt UK
First 12 Months – The Story Initial Challenges Faced at Start of Implementation
Site survey capacity wasted Clients unable to agree dates Pressure to start work as early as possible
Internal time estimates inaccurate
Not enough work to promote flow
Site surveys taken too early, pick up bad info
Turnover measured in every dept. Departmental KPI’s in Conflict
We believed early start = early finish Lack of abundance mindset
First 12 Months – The Story Paradigm Shift Over The 12 Months Sales Focus on Order Book Size
Local KPI Driven
Large Batch sizes
Lots of detailed early planning
Focus on when sales will deliver revenue Throughput Driven
Batch sizes getting smaller
Cant plan more accurately than the noise!
First 12 Months – Tools - RopeWeaver
First 12 Months – Tools – Sales Pipe
First 12 Months – Tools – Sales Pipe Trend 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000
Early Communication Interest Desire
4,000,000 2,000,000 0
Action
First 12 Months – The Story Key Challenges in Last 6 Months
Belief in the big Numbers!
Need to keep Orders Coming in at Increased rate
Keeping TVC under Control
Keeping systems up to speed with growth- (suppliers etc)
First 12 Months – The Celebration
The Road Ahead – Phase 2 4 Mafia Offer..
3 Focus on Installation Completion
2 New Flow Model
1 Vigorous Full Kit
Unusual Implementation….
Projects
Installation
Manufacture
Supply Chain
Building Operational Excellence – Next Steps
Start with a story…..
Building Operational Excellence – Next Steps
Step 5…..If in a previous step, the constraint has been broken, go back to step 1 but.. …BEWARE of inertia
Building Operational Excellence – Next Steps • Our constraint had changed • Moved from design to installation Manufacture
Design
Installation
Supply
Building Operational Excellence • Five key needs of main contractors from subbies. •Effective synchronisation
No Hassle
•Rapid Installation
•Flexibility
•Reliability
Building Operational Excellence Where are we so far? Effective synchronisation
1
Flexibility
2
Reliability
3
Rapid Installation
4 5
No Hassle
Building Operational Excellence Vigorous Full Kit GOAL – Make Money FACT - Can 0nly charge for what we have fitted FACT – Installation Very difficult to manage TACTIC – Introduce full kit to ensure only work that has a very high chance of completion should be allowed to flow! TACTIC – Reduce batch sizes to make work more manageable and ensure installations are not left open. RIGOROUS – don’t be afraid to sop a section from flowing if FK not achieved.
New Flow Model • Operates on Drum-Buffer-Rope principal. • Uses a High-Touch-Time buffer to manage operations. • “Hybrid” approach between DBR and critical chain.
“HIGH” TOUCH TIME Due Date Today
WORK PACKET LEAD TIME
Touch time = ??
Summary
18 Months In…. • Monthly revenue generation rate x 2 • Net full time staff have increased by just 2 in the same period. • Substantial increase in ROS as a result
Questions?
