28th International Conference of the TOC Practitioners Alliance - TOCPA www.tocpractice.com
9 November 2016, UK
Key Steps to Implementation Success Andy Watt, Goldratt UK 9 November, 2016
Andy Watt Brief bio Engineer and Business owner • 1985 Senior Manager in Aerospace and Defence • 2000 joined Goldratt UK • 2004 formed Levee • 2007 MD of Goldratt UK • 2011 formed RopeWeaver business systems • 2013 shareholder of Tenon Engineering
[email protected] www.Goldratt.co.uk
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28th International Conference of the TOC Practitioners Alliance - TOCPA
Experience Goldratt UK • Established by Dr Goldratt in 1989 • Implemented TOC successfully with hundreds of companies in all different sectors and using different TOC solutions • Many companies still using TOC after more than 10 years and some for over 20 years
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28th International Conference of the TOC Practitioners Alliance - TOCPA
Experience
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28th International Conference of the TOC Practitioners Alliance - TOCPA
Defining Success
Zero achieve what is possible
20% sustain the good results over a long period (over 5 years)
98% get significant results from an implementation
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28th International Conference of the TOC Practitioners Alliance - TOCPA
Typical implementation issues • • • • • •
Pressure from customers forces organisation to violate WIP freeze in CCPM implementations Pressure to maximise sales forces organisation to overload resources and violate MTO due date quoting Pressure to reduce inventory results in delays in replenishment orders and subsequent stock outs Pressure of time results in lack of agreement on specifications for products in engineer to order Pressure to keep resources busy all the time results in poor delivery performance Pressure to delay investment results in stagnation and lack of growth
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28th International Conference of the TOC Practitioners Alliance - TOCPA
Vicious Cycle
Managers have less and less time
Number of problem areas increase
Pressure from above
Managers are forced to take faster and easier local actions
Local actions make things worse elsewhere
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28th International Conference of the TOC Practitioners Alliance - TOCPA
Management Constraint?
Characteristic of a constraint: 1. Complex 2. Cause and effect is difficult to understand 3. Significant variability 4. High WIP related to it In many businesses the speed and quality of management decisions is not good enough…. • Managers do not get involved in the detail • Their time only allows them to intervene in a crisis • They abdicate responsibilities • Managers cannot achieve all the measures
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28th International Conference of the TOC Practitioners Alliance - TOCPA
www.tocpractice.com
28th International Conference of the TOC Practitioners Alliance - TOCPA
Underlying Issue
Current thinking: Decisions must be made in isolation Because… • Variability and dependencies in an organisation make it almost impossible to know the true value of any decision And… • Time is finite
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28th International Conference of the TOC Practitioners Alliance - TOCPA
Direction of Solution Management Thinking • Better Exploit Management attention and Management global decision making • Pro-active rather than reactive mindset
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28th International Conference of the TOC Practitioners Alliance - TOCPA
Implementation Steps
1
• Full Top Management buy-in and understanding of the details in the S&T for the business
2
• Embed the POOGI mindset in management and ensure significant results achieved quickly
3
• Strategies are measured, business performance measures are indicators only
4
• Management decisions are not made instantly but after analysis conducted by a small group who develop a complete set of actions
5
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• People are assessed on desired behaviours not on outcomes
28th International Conference of the TOC Practitioners Alliance - TOCPA
Testing the Hypothesis
18 month test in BA Systems is ongoing… • First two steps complete and three is WIP
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28th International Conference of the TOC Practitioners Alliance - TOCPA
Challenges for us
• Selling the approach to top management and not compromising on it in sales and in implementation
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28th International Conference of the TOC Practitioners Alliance - TOCPA
Summary My definition of success…
More and more businesses getting significant results in the long term
More and more businesses (and people) achieving what is possible
More and more business getting significant results from implementations www.tocpractice.com
28th International Conference of the TOC Practitioners Alliance - TOCPA
