implementing toc it doesnt have to be hard!
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(c) 2001 Mark Woeppel
Why Are We Here? How do I take what is in the literature and put it in place?
Where are the leverage points in the implementation?
How can I implement without killing anyone?
What factors, if properly implemented result in a sustainable implementation?
(c) 2001 Mark Woeppel
Agenda Introduction The TOC production system Planning a successful implementation
Effectively launching your implementation
Integrating constraint management into your business
Organizational alignment
(c) 2001 Mark Woeppel
Introduction Understand the process to build and
maintain consensus for change Explore the elements of success How to get your implementation going How the pieces fit together
(c) 2001 Mark Woeppel
A Successful Implementation Major functions
Focused on global goal (throughput)
Understand business implications of constraint
Location Desired action
Strategic Planning Takes constraint into account Future location?
(c) 2001 Mark Woeppel
Successful Implementation Physical characteristics
Measurement systems Drum-buffer-rope Buffer management Order promising Internal “jonahs”
(c) 2001 Mark Woeppel
What’s Important?1. IDENTIFY the system constraint(s)2. EXPLOIT the identified
constraint(s)3. SUBORDINATE everything else in the
system to step #24. ELEVATE the system's constraint5. Go back to step #1
Each step has business policy and process implications
(c) 2001 Mark Woeppel
5 Steps and You Business processes linked to execution Be purposeful in process design Policy issues must be addressed
Lasting implementations codify the steps Devil in the details Anchors in changing environments
(c) 2001 Mark Woeppel
TOC in Manufacturing Throughput, inventory & operating expense measures
Drum buffer rope scheduling Buffer management Controlled material release Pull signals from distribution Decision processes around the constraint(s)
(c) 2001 Mark Woeppel
Drum – Buffer - Rope Drum is synchronization point for factory Daily schedule Constraint?
Buffer protects the throughput Aggregates variation Focus for execution
Rope protects the priority system Limits work in system Establishes sequences at non-constraints
(c) 2001 Mark Woeppel
Why Plan? Well, duh! Incorporate the elements to make the new processes stick
Can’t get help without one Establish deliverables Establish direction
Solution Implementation strategy
(c) 2001 Mark Woeppel
Philosophy of Implementation Execution is foundation of improvement
Establishing clear objectives critical Benchmarking Continuous measurement
Early successes build momentum Keep it simple Implementation is evolutionary
(c) 2001 Mark Woeppel
Achieving Control
Achieving control is prerequisite to implementing a process of ongoing improvement
Indicators of control deficits Poor due date performance (< 95%) Low inventory turns (< 8) Poor constraint utilization
(c) 2001 Mark Woeppel
Implementation Strategy Two parts
Technical – policy & procedure Change management – “soft issues”
Management’s hot buttons (project objectives)
Obstacles to implementation People (power structures) Technology
(c) 2001 Mark Woeppel
Implementation Planning Establish clear goals Establish measurements Identify the the constraint(s) Develop a strategy for exploitation
Subordinate the non-constraints Plan for movement of the constraint
(c) 2001 Mark Woeppel
Effectively Launching Your Implementation The project launch lays the foundation
for a success Prevents
An unfocussed implementation A never-ending project A premature end due to lack of
commitment or concrete results
(c) 2001 Mark Woeppel
Building Consensus To Change Classic difficulties / obstacles Turf issues Fear
Loss of control Organizational stature
(c) 2001 Mark Woeppel
Consensus (cont.) The problem of local optima
Each functional manager has only part of business equation (np/roi)
Supply chain cuts across functional lines
Technology and process focus on local execution
TOC is global, requires sub-optimization of local areas / functions
(c) 2001 Mark Woeppel
Levels of Buy-In Senior Management
Support Results Policy implications
Middle Management Do not block Understand processes
Rank & file Processes Outcomes
(c) 2001 Mark Woeppel
How To Do It? Demonstrate clear link
Business results Project outcomes Process methodology
Is TOC good? How will the business be changed?
Project methodology How do I know you can actually do this?
(c) 2001 Mark Woeppel
Training Process
What Why
Manage resistance to change Get agreement on new behavior
(c) 2001 Mark Woeppel
Training Events Senior Management – 2 days
Build consensus Overview of TOC Strategic implications Implementation issues
Middle / operations management – 2 days Similar to sr. mgmnt. Detailed procedures
Operators – 2 hrs Basic overview Eliminate Fear
(c) 2001 Mark Woeppel
Launch Events Training event All hands meeting Post a memo on the bulletin board
Best Communicate Educate Respond to concerns
(c) 2001 Mark Woeppel
Integrating Constraint Management Into Your Business Do a thorough analysis Design the processes to fit YOUR organization
Position the solution to maximize buy-in
Have the right processes
(c) 2001 Mark Woeppel
Implement Control Processes Selection of constraint (control points)
Development of exploitation policy and procedure
Training of directly involved people
Implementation strategy
(c) 2001 Mark Woeppel
Selection of the Constraint Current location
WIP Problems
Strategic location Capital investment Ease of elevation
Constraint, bottleneck, control point
(c) 2001 Mark Woeppel
Exploiting the Constraint Scheduling Resource allocation Accountability Alignment with the global plan
(c) 2001 Mark Woeppel
Analyzing Your Process Process maps
Identify wasted effort Duplications Wrong decision processes (incomplete)
Incorrect assumptions TOC analysis
Where to focus? Incorrect assumptions
(c) 2001 Mark Woeppel
Planning Influences on Order Fulfillment
When will the customer receive product?What information do we need?
How to translate customer needs to plant instructions?
How to reconcile customer needs to resource availability?
SalesWrite Up Order
Check Mat'l AvailabilityReserve Capacity & Parts
Gears & ProductionMake the stuffEngineering
Create BOM
Order EntryEnter Order
Prepare Drive Card
SchedulingReview DocsCreate WO
Release to Shop
AssemblyMake the stuff
Shipping
$$
Inventory PlanningSet Stocking levels
(c) 2001 Mark Woeppel
Planning Influences on Order Fulfillment
SalesWrite Up Order
Check Mat'l AvailabilityReserve Capacity & Parts
Gears & ProductionMake the stuffEngineering
Create BOM
Order EntryEnter Order
Prepare Drive Card
SchedulingReview DocsCreate WO
Release to Shop
AssemblyMake the stuff
Shipping
$$
Inventory PlanningSet Stocking levels
How much can we invest to support our customers?
How to make a quality product effectively?
(c) 2001 Mark Woeppel
Execution Influences on Order Fulfillment
What if the standard lead time isn’t good enough?
What if the customer changes his mind? Do we have enough capacity?
SalesWrite Up Order
Check Mat'l AvailabilityReserve Capacity & Parts
Gears & ProductionMake the stuffEngineering
Create BOM
Order EntryEnter Order
Prepare Drive Card
SchedulingReview DocsCreate WO
Release to Shop
AssemblyMake the stuff
Shipping
$$
Inventory PlanningSet Stocking levels
(c) 2001 Mark Woeppel
Execution Influences on Order Fulfillment
SalesWrite Up Order
Check Mat'l AvailabilityReserve Capacity & Parts
Gears & ProductionMake the stuffEngineering
Create BOM
Order EntryEnter Order
Prepare Drive Card
SchedulingReview DocsCreate WO
Release to Shop
AssemblyMake the stuff
Shipping
$$
Inventory PlanningSet Stocking levels
Will we finish on time?Which jobs should be worked on first?
Do we have the right amount of product available?
(c) 2001 Mark Woeppel
Feedback & Integration Needs
SalesWrite Up Order
Check Mat'l AvailabilityReserve Capacity & Parts
Gears & ProductionMake the stuffEngineering
Create BOM
Order EntryEnter Order
Prepare Drive Card
SchedulingReview DocsCreate WO
Release to Shop
AssemblyMake the stuff
Shipping
$$
Inventory PlanningSet Stocking levels
What’s the status of the buffer?
Are we meeting our schedule?
(c) 2001 Mark Woeppel
Critical Processes Scheduling policy & process Measurements to support processes
Execution management Buffer management Release control Schedule control
(c) 2001 Mark Woeppel
What Is Alignment?“All elements of a company work together in concert within the context of the organization’s core ideology and type of progress it aims to achieve - its vision or goal. The effect of alignment is that people receive a consistent set of signals to reinforce behavior that supports the core ideology and achieves desired progress”
Built to Last: Successful Habits of Visionary Companies, James C. Collins, Jerry I. Porras
(c) 2001 Mark Woeppel
Alignment Questions What are we doing to exploit the constraint?
Where is the constraint relative to management’s plan or desire?
Where is it likely to move next? Is that acceptable? What do I do now?
(c) 2001 Mark Woeppel
Strategy Development Throughput per minute by product
Which products are most profitable Identify process improvement targets Develop pricing policies
Buffer reports Capacity condition Identify investment needs Goals for operations plans
(c) 2001 Mark Woeppel
Measurement Behavior follows measurement Measure the “right” things
What do customers want Improve the business Flexibility and responsiveness
(c) 2001 Mark Woeppel
Keys To Success Successful implementations have: Trained people in the “why” Paid attention to change management issues
A real plan Robust processes Senior management leadership
(c) 2001 Mark Woeppel
Leverage Points Get consensus before you begin
Avoid resistance Well thought-out goals
Understand your process Get control
DBR Buffer management
Measurement systems
(c) 2001 Mark Woeppel
Results Without Fear Train, train, train
Concepts Implications Procedures
Reinforce results Measurement systems Celebrations
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