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29th International Conference of the TOC Practitioners Alliance - TOCPA www.tocpractice.com
November 11-12, 2016 Vilnius, Lithuania
Industry 4.0 challenges for Lithuanian companies
Nerius Jasinavičius, TOC sprendimai, Lietuva 11 November 2016 29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
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Nerius Jasinavičius • Founder of TOC sprendimai • Founding Member of TOCPA • Consultant for unique clients • TOCICO certified SC, TP • Certified Management Consultant • Supporter of Small and Medium businesses
[email protected]
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
What affects success of organization?
Management methods
Employees
Tools
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
Her majesty “optimization”
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
What is optimization in reality?
Often for tom management optimization equals to cost reduction. Therefore improvement projects focus on: • Reduction of protective free capacity • Enforcing stability over inherent variability • Accepting noise of the system for the Signal • Ignoring real Signals
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
Not everybody is happy with results
Text
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
What is Industry 4.0
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
What is happening with “the tools”
• With few exceptions, 5 of the largest Tech companies in the world did not exist 10 years ago. • Of roughly 2,000 individual work activities, 45 percent could be automated using already demonstrated technology (McKinsey) • All Future Successful Companies will be Technology Driven (Gartner) • Change Management is now an Evaluation between competing Technologies
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
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The world is going “banana”
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
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Industry 4.0 impact for companies
• Demand for unskilled or low skilled labour going down • Labour cost part in company’s OE is shrinking • Cheap labour is not a competitive edge any more • Growth for highly skilled employees • Individualization of consumption • Explosion of quantity of data • Life-cycle for products, ideas and business models is getting shorter
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
But...
• Management attention still is the major constraint • Stability and growth can be achieved only by management’s ability to Build, Capitalize and Sustain DCE • Time to make a decision is getting shorter and shorter, but impact of the decision is getting bigger
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
What to do?
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
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First thing first! STOP OPTIMIZING !!!
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
6 questions of (exploiting) technology
If all future successful companies are Technology Driven, and change management is an evaluation between competing Technologies, then ability to exploit technologies becomes critical. 1. 2. 3. 4. 5.
What is the real power of the technology? What limitation does this technology diminish? What rules helped accommodate the limitation? What are the rules that should be used now? What is the application of the new technology that will enable the above change without causing resistance? 6. How to build, capitalize and sustain the business?
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
Decision making competence of management
• Ability to identify Undesirable Effects (UDEs) • Ability to identify Core Conflict of the system • Ability to find solution and necessary injections • Ability to plan good experiment (pilot project) • Ability to differentiate noise and Signals • Ability to get buy-in and support for the change
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
www.tocpractice.com
Thank you !
29th International Conference of the TOC Practitioners Alliance – TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania
