23RD INTERNATIONAL CONFERENCE OF THE TOC PRACTITIONERS ALLIANCE - TOCPA www.tocpractice.com
21-22 March, 2016, Tennessee, USA
S&T AND THE RED CURVE.
SADASHIV PANDIT, INDIA MARCH, 2016
SADASHIV PANDIT
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EXECUTIVE CHAIRMAN FLEETGUARD LTD.
FILTERS
PVT
PUNE, INDIA.
[email protected] +91 98220 23647. www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
EVER FLOURISHING COMPANY…
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STRATEGY AND TACTIC TREE IS A SYSTIMATIC WAY OF ‘DEVELOPING THE LOGIC’ TO BUILD AND SUSTAIN A COMPETITIVE EDGE. EVER FLOURISHING COMPANY IS A STATE ACHIEVED AFTER SUCCESSFULLY IMPLEMENTING A STRATEGY AND TACTIC TREE. KEY ATTRIBUTE OF EVER FLOURISHING CO IS…CREATING NEW BREAKTHRU SOLUTIONS ALL THE TIME… www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
EVER FLOURISHING COMPANY…
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RED CURVE MEANS…WE ARE GROWING THE THRUPUT FASTER THAN THE ‘OE’ FOR A GIVEN MARKET. THE CHALLENGE IS…WHAT ARE THE OBSTACLES FOR GROWTH, HOW TO LOOK IN TO THE ‘ASSUMPTIONS’ ‘AND HOW TO USE ‘FALCIFICATION LOGIC EFFECTIVELY’.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA
FLEETGUARD INDIA : PLANTS & OFFICES
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23rd International Conference of the TOC Practitioners Alliance - TOCPA
FLEETGUARD STORY…
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FLEETGUARD HAS BEEN ON THE TOC JOURNEY SINCE 2007. OUR BUSINESS GROWTH SO FAR [PAST 9 YEARS] GIVE US THE CONFIDENCE THAT WE ARE ON THE ‘RED’ CURVE.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA
SALES GROWTH
Sales 12,000 10,000 8,000 6,000 4,000 2,000 2007
2008
2009
2010
2011 Sales
2012
2013
2014
2015
2016 FCST
COMPANY PROFILE….
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WE ARE IN THE BUSINESS OF AUTO COMPONENTS. WE SUPPLY TO MAJOR OEM AND THEIR AFTERMARKET CHANNELS. WE ALSO SUPPORT/COMPLEMENT THE OEM CHANNELS THRU OUR INDEPENDENT CHANNELS
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23rd International Conference of the TOC Practitioners Alliance - TOCPA
SIGNIFICANT NEED…INSIGHTS
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SIGNIFICANT NEED FOR A MARKET COMPRISES OF ‘PRODUCTS’ AND ‘SERVICES’. SIGNIFICANT NEED IS ABOUT THE ‘PROBLEM’ MARKET IS FACING . BOTH PRODUCT AND SERVICE REQUIREMENTS ‘CHANGE WITH RESPECT TO TIME’ AND SO IS THE SIGNIFICANT NEED.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA
NEED CONTINUUM…
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WHAT IS ‘SUFFICIENT’ TODAY…MAY BECOME NECESSARY BY TOMORROW. EXAMPLES…IF A COMPANY IMPLEMENTS CCPM, IT REDUCES THE LEAD TIME TO INTRODUCE NEW PRODUCTS SAY BY 50%. THE LEAD TIME OF TODAY MAY BECOME A ‘NECESSARY CONDITION’ OF TOMORROW.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA
SIGNIFICANT NEED..FLEETGUARD…
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MEET THE CUSTOMER EXPECTATIONS OF PRODUCT PERFORMANCE,COST AND SERVICE WITHIN THE CUSTOMER TOLERANCE TIME.
CUSTOMER TOLERANCE TIME FOR OEM FIRST FIT AND FOR AFTERMARKET ARE DIFFERENT AND ARE ON DIFFERENT SCALE OF ‘REACH AND RANGE’.
www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
STRATEGY AND TACTIC TREE…
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FLEETGUARD DEVELOPED ITS STRATEGY AND TACTIC TREE COVERING THE FOLLOWING 1. MARKET HAS TO BE BIG ENOUGH 2. SATISFY THE SIGNIFICANT NEED OF THE MARKET, WITHOUT TAKING MAJOR RISK, THRU TESTED AND PROVEN TOC TOOLS LIKE S-DBR,CCPM, THRUPUT ACCOUNTING. 3. TRACK THE NECESSARY AND ASSUMPTIONS FROM TIME TO TIME. www.tocpractice.com
PARALLEL
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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TOC IS ABOUT FIVE FOCUSING STEPS.. DR.ELI GOLDRATT HAD WARNED THAT COMPANIES GET STUCK IN INERTIA. AFTER A SUCCESSFUL IMPLEMENTATION OF TOC SOLUTIONS, THE SALES AND PROFIT GOES UP RAPIDLY. THIS SITUATION GENERATES A ‘COMFORT LEVEL’ WITHIN THE ORGANIZATION TO ‘NOT TO CHANGE’. www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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COMPLECANCY STEPS IN AND AND SO IS COMPETITION. CHALLENGE NO #1 ……HOW TO RETAIN THE CURRENT BUSINESS? THIS CHALLENGE CAN BE OVERCOME BY ‘CCPM’ LEVER. ONGOING CAPACITY EXPLOITATION OF CCR ENSURES ‘DCE’ IN PLACE. www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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CCPM LEVER… CCPM IS THE ABILITY TO ROLL OUT RESPONSES VERY FAST. ANY CHALLENGE/TARGET FROM THE OEM CUSTOMER CAN BE MET. CCPM GIVES THE FLEXIBILITY TO ‘ADD OR SUBTRACT VALUE’ BASED ON THE PRODUCT NEED. www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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CHALLENGE NO# 2….MARKET IS BIG ENOUGH. IN AN OEM BASED BUSINESS SOLUTION, PRODUCT LIFE CYCLES ARE CERTAIN AND TO A LARGE EXTENT, CAN BE PREDICTED. THE CHALLENGE IS…HOW TO DEVELOP NEW PRODUCT, OBSOLATING THE CURRENT ONE WITH ‘HIGHER T% AND BEING MORE COST COMPETITIVE?’ www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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VALUE BASED PLANNING ALLOWS TO SET A NEW VALUE POSITION AS WELL AS A NEW PRICE POSITION, BOTH OF WHICH CAN BE ‘COMPETITIVE’ [BLUE OCEANS] A DECISIVE COMPETITIVE EDGE COMPRISES OF ‘PRODUCT VALUE AND SERVICE VALUE’. FOCUS ON ‘PRODUCT VALUE’ CREATES A NEW PRICE POINT IN THE MARKET PLACE, WHICH ADDS MORE T%. www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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CHALLENGE NO # 3……PENETRATION AFFECTING ‘REACH AND RANGE’. LOCAL PLAYERS TRY TO DISRUPT THE MARKET AT MANY PLACES. THAT COULD BE WITH LOWER COST/ HIGH VOLUME OFFERS. TOC SOLUTIONS OF FREQUENT REPLENISHMENTS OFFSET SUCH INITIATIVES. POT OF GOLD/ALLEGATOR OFFER SELLING OFFSET THIS CAUSE. www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES..
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CHALLENGE NO # 4….TOC AS A DNA. MANY PEOPLE WITHIN THE COMPANY GET STUCK WHEN THEY FACE OBSTACLES. THE ROOT CAUSE BEING THEY DO NOT UNDERSTAND CRT/FRT LOGIC BEHIND THE SOLUTION.IN SUCH INSTANCES, THEY REVERT TO LOCAL OPTIMA DECISION MAKING AND PUT ‘DICISIVE COMPETITIVE EDGE ‘ IN DANGER. INITIALLY TOC SOLUTIONS START FROM TOP WHERE THE PARADIGM SHIFT HAPPENS.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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DOWN THE LINE ORGANIZATION GETS DRIVEN BY SOPS’. AS THE COMPANY COMPLETES FIRST ROLL OUT OF VIABLE VISION, STEP II VIABLE VISION JOURNEY STARTS. THE KEY CHALLENGES FOR THIS JOURNEY ARE 1.IDENTIFYING THE ‘NOISE’ IN THE REALITY. 2.IDENTIFYING THE CHANGE IN REALITY. www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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WITHOUT KNOWLEDGE OF CAUSE AND EFFECT LOGIC, A ‘NOISE’ IS DEALT WITH ‘LOCAL OPTIMA’ SOLUTIONS, THRU JEOPARDIZING THE ‘DCE’. A KEY REQUIREMENT IS TO TRAIN AND COACH ‘TOC AS DNA’ ACROSS THE ORGANIZATION. IN-ABILITY TO READ CHANGE IN REALITY HAS EVEN BIGGER IMPACT ON THE PERFORMANCE OF THE COMPANY. www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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BREAK THRU SOLUTIONS ARE GOING TO COME ONLY THRU’ ANALYSING THE NEW REALITY THRU CRT/FRT’ LOGIC. WITHOUT ‘BREAKTHRU’, THE ‘DCE’ IS NOT GOING TO SUSTAIN.IN THAT CASE A ‘RED CURVE’ PERFORMANCE WILL DISAPPEAR IN SHORT TIME. PENETRATING TOC EDUCATION TO THE BOTTOM THUS IS THE KEY. www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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FAILURE TO IDENTIFY NEW BREAKTHRUS MEANS FAILURE TO SURVIVE. A COMPANY WIDE TRANING AND COACHING TOC PRINCIPLES BECOMES A VERY CRITICAL NEED. FALCIFICATION LOGIC IS USED TO CHECK CRT/FRT. THIS ALLOWS THE COMPANY TO DIFFERENTIATE BETWEEN ‘NOISE’ AND ‘CHANGE’ IN REALITY.
www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
KEY CHALLENGES…
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AS THE COMPANY STARTS USING FIVE FOCUSING STEPS AGAIN AND AGAIN, THE COMPANY WITH TOCDNA IS ABLE TO IDENTIFY MORE AND MORE BREAKTHRUS’ AS WELL AS LEARNS TO AVOID LOCAL OPTIMA DECISIONS FOR THE ‘NOISE’ IN REALITY. THESE NEW BREAKTHRUS’ ARE PUT IN TO SNT AND NEW SOPS’ ARE MADE.
www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
SIMPLE DIFFICULTY…
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TOC SUCCESS ON ONGOING BASIS IS WELL DEFINED IN THE FIVE FOCUSING STEPS. SNT CAPTURES THE SCOPE . SNT NEEDS REVISION REGULARLY, BASED ON THE MARKET CONDITIONS. ABILITY OF THE COMPANY TO DIFFERENTIATE BETWEEN THE ‘NOISE’ AND ‘CHANGE’ IN REALITY DECIDES SUCCESS AND FAILURES. www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
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THANK YOU www.tocpractice.com
23rd International Conference of the TOC Practitioners Alliance - TOCPA
