14-Katlego Mabote_27 TOCPA_August 2016_South Africa

www.tocpractice.com

13th International Conference of the TOC Practitioners Alliance ‐ TOCPA www.tocpractice.com

May 21‐22, 2014 Johannesburg, South Africa

•4 Pillars of TOC and effective application and results in Mining

Katlego Mabote :TOC Optimization Manager South Africa :Lonmin

13th International Conference of the TOC Practitioners Alliance ‐ TOCPA

www.tocpractice.com

Katlego Mabote Resume

13th International Conference of the TOC Practitioners Alliance ‐ 2016/08/15 TOCPA

www.tocpractice.com

4 Pillars of TOC and effective application and results in Mining

What is TOC for US REFRAMING • • • • •

Leadership Concept of Revenue Flow Concept of Variation and Buffer Management System Concept of Behaviour (Non Verbal and Verbal) What measurement are Critical


www.tocpractice.com


What is the Core Problem

How Much we Spend

The Difference Is Profit

Money to be Made

Especially if the Markets are open for More Volume


www.tocpractice.com


But what is the Reality our Business Plan The Loss

or Less

The SPENT become Fixed

The Difference

THEN What is NEXT….


www.tocpractice.com

4 Pillars of TOC and effective application and results in Mining THEN The Unconscious New business Model

or Less

These become Fixed

The Difference

The Loss

THEN: COMES THE WORSED


www.tocpractice.com

4 Pillars of TOC and effective application and results in Mining THEN The Unconscious New business Model

or Less

These become Fixed

Then THE Spend Cant be Increased

The Loss

THEN: HOW DO WE ANALYSE AND SPEND OUR TIME IN THE NAME OF REVENUE


www.tocpractice.com

4 Pillars of TOC and effective application and results in Mining THEN : we analyse the LOSS

or Less

These become Fixed

Then Spend Cant be Increased

Then We suggest the obvious: WHAT IS THAT ?

The Loss

Analyse the TOP 5 loss contributing factors


www.tocpractice.com

4 Pillars of TOC and effective application and results in Mining THEN : We benefit the LAW OF FOCUS

or Less

These become Fixed


The Loss

Or

Series

Parallel 13th International Conference of the TOC Practitioners Alliance ‐ 2016/08/15 TOCPA

www.tocpractice.com

4 Pillars of TOC and effective application and results in Mining THEN : the conversation between CORE PRODUCTION and NON CORE

or Less

These become Fixed


The Loss

PRODUCTION VOICE

NON CORE VOICE • More Spend is Waste d • BLACK BOX Mentality

• Policing the Policy

One VOICE We need More


www.tocpractice.com


THEN

OUR VICTIMS OF WHAT TO THINK Or

VICTORS OF HOW TO THINK


www.tocpractice.com

THE TOC ANALYSIS

THEN : THEN TOC ANALYSE THE LOSS

or Less

These become Fixed

Then increase the Spend

The Loss

The World of Variability and Stability


www.tocpractice.com

THE TOC ANALYSIS VISIBLE VARIATION

THEN : THEN TOC ANALYSE THE LOSS

or Less

These become Fixed

The TOC Technical Loss

Then increase the Spend

The 1st loss is NO Guarantee Availability The 2nd loss is NO Protection of Revenue Flow 13th International Conference of the TOC Practitioners Alliance ‐ 2016/08/15 TOCPA

www.tocpractice.com

THE TOC ANALYSIS INVISIBLE VARIATION THEN : THEN TOC ANALYSE THE LOSS The TOC Technical Loss

or Less

These become Fixed

The 3nd loss is Leadership and Behaviour The FIGHT AGAINST POLICY

Then increase the Spend The 1st loss is Guarantee Availability The 2nd loss is Protection of Revenue Flow


www.tocpractice.com

The 4 Pillars of TOC Success (Inputs)

Leadership

Optimised Flow of the Whole

• • • • •

• • • • •

Understand & Adopt TOC Frame of Reference Articulate Strategy & Shared Vision Plan & Communicate Case for Change Identify Critical Success Factors & KPI’s Exhibit Inclusive & Coaching Management Style

Develop Big Picture Flow Models Determine System Constraints & Buffers Establish MO Picture for Flow Conduct HL Analysis & Manage Priorities Ensure Visibility of System Health

Optimised Flow (TOC) Establishing a System for Excellent Results Buffer Management

Ops & Reflection

• Establish Buffer & Replenishment Approach & System • Ensure Material Buffers & Replenishment • Ensure Skills Buffers & Replenishment • Ensure Equipment Buffers & Replenishment • Manage Operational & Strategic Buffers

• • • • •

Conduct Daily Ops Room & Establish Focus Facilitate Revenue based Decision making Conduct Reflection meetings / conversations Facilitate Dialogue principles Institute Teamwork development & 15 improvement


www.tocpractice.com

TOC in Lonmin

15 13 12

IN

750 000 oz

16

16

11

16

15

12

14

16

Leadership

12

13

12

10

13

13

12

OUT

15

14

Stable Predictable Low Cost/oz

Optimised Flow 4 Pillars Buffer Management

Unstable Unpredictable High Cost/oz

Bottle 3 + 20%

Ops & Reflection

Rowland

Bottle 2 + 10 %

Saffy

4B

K3

Leadership Flow of the Whole Buffer Management Ops & Reflection 18

Bottle 1 90 Days 16

13th

International Conference of the TOC Practitioners Alliance ‐ TOCPA

East 3

www.tocpractice.com


www.tocpractice.com

Financial vs Operational Leverage Savings Expenses Costs

$

$

Leverage

In one room but in two different worlds

↑ Margin Turnover Revenue

Truly Variable Cost

• • • •

Leverage

$ $

Expenses Costs

Reducing Expenses is a guaranteed way to improve Bottom Line Results The More we Save, the more Money we Make Costs are exact numbers, derived from history Erroneous Assumption: Revenue will remain Constant

↑ Margin Turnover Revenue

Truly Variable Cost

• •

The More we Put in, The More we can get Out Erroneous Assumptions: – Production / Revenue will increase as we predict – The increased funding is available

18

13th


www.tocpractice.com


www.tocpractice.com

20


www.tocpractice.com


www.tocpractice.com

22


www.tocpractice.com

The Results- Comparison

The Results- Comparison 1. 2. 3. 4.

Low Variability Upward trend Movement from Non performance to performance A profit Game th

23

13 International Conference of the TOC Practitioners Alliance ‐ TOCPA

www.tocpractice.com

Saffy Wet Tons Hoisted 2013/2014 8,000

7,000

6,000

5,000

Shifts Worked in

Shaft Record Production

Request for additional supervisory ops staff

Initial TOC training Ops meeting started

4,000

3,000

2,000

Fatality 1,000

7 Day Move Avg

Requested 22 winches for buffer R4,1m Half level stores to be expanded to two Weeks R7m (Not done)

Linear (7 Day Move Avg)

Sect 54

‐


www.tocpractice.com

Pushed Hard to Implement TOC, partial Success

New Leadership Introduced

25

13th


www.tocpractice.com

4B TONS RESULTS

26


www.tocpractice.com

E3 NOW

27


www.tocpractice.com

Ed Deming on Measurements Dr Edwards Deming used say: “97% of what really matters in an organization can't be measured. Only maybe 3% can be measured. But when you go into most organizations and look at what people are doing, they're spending all their time focusing on what they can measure and none of their time on what really matters ‐ what they can't measure. Why would we do this? We're spending all of our time measuring what doesn't matter.” ‐ Ed Deming Few people realise that Toyota does not use any standard cost accounting for its daily operations

Founder of Total Quality Management (TQM)


14-Katlego Mabote_27 TOCPA_August 2016_South Africa

Recommend Documents