oded cohen_after goldratt_eng_17 tocpa_vilnius_15 may 2015

17th International Conference of the

TOC Practitioners Alliance - TOCPAwww.tocpractice.com 15 May 2015, Vilnius, Lithuania

TOC After

Dr. Eli Goldratt

Oded Cohen, TOC Strategic Solutions, Israel15 May 2015

17th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com

Oded Cohen

Oded has over 35 years of experience in developing,teaching and implementing TOC methodology,solutions and implementation processes workingdirectly with Dr. Goldratt all over the world. Among thecountries to which Oded brings his expertise are theUSA, Canada, Japan, India, China, the UK, Poland,Russia, Ukraine, Colombia, Chile, Peru, Turkey andmany others.

Oded has authored multiple TOC articles andcontributed to numerous TOC books.

Oded in the is the author of Ever Improve A Guide toManaging Production the TOC Way, published in June2010. Oded co-authored the book Deming & Goldratt:The Theory of Constraints and the System ofProfound Knowledge The Decalogue.

Together with Jelena Fedurko Oded has co-authoredthe book Theory of Constraints Fundamentals.

Oded is International Director of TOC StrategicSolutions Ltd and Founder and Co-President ofTOCPA.

[email protected]


Dr. Eli Goldratt

1947 2011

In 1975 Eli Goldratt got his PhD in Physics and started a software company OPT Israel.

This was the beginning of the Management Approach known as TOC Theory of Constraints


Goldratts TOC

Practical Bring benefits In the public domain

Goldratt believed in Knowledge.

He stated that Knowledge should be:

Knowledge is not fixed. It continuously expands.He chose POOGI the Process of Ongoing Improvement as the main driver for pushing the knowledge boundaries.


Goldratts POOGI

The strong conviction that it is possible to improve the performance of every system.

The desire to bring the basics of hard science to management by using Cause & Effect.

The belief that it is possible to use logic in managing systems and people.

The search for the new rules for the system and the way to develop them.

Goldratts approach to POOGI was driven by:


TOC

Knowledge Development

1975-1986 - The OPT Days Software + Training + Thoughtware

1987-1997 - Goldratt Institute Educating Managers: Jonah programs and

Thinking Processes

1998-2000 Marketing TOC

2001-2011 Goldratt Group Holistic approach to manage companies

Viable Vision


Production, Throughput Accounting OPT, The Goal, The Race, The Haystack Syndrome, Production the TOC Way

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Production

1975 1980 1985 1990 1995 2000 2005 2011

Selling OPT: The Goal (1983) The Race (1986)


Thinking Processes (TP)

1975 1980 1985 1990 1995 2000 2005 2011


The Thinking Processes Thought-ware, Jonah Program The Choice (2008)

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1990 - What is this thing called TOC What to change What to change to How to cause the change

2008 The Choice


TP and Applications

1975 1980 1985 1990 1995 2000 2005 2011



Distribution, Marketing, Management Skills Its Not Luck

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Project Management

CCPM

1975 1980 1985 1990 1995 2000 2005 2011



1997 - Critical Chain


Project Management Critical Chain

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Body of Knowledge

1975 1980 1985 1990 1995 2000 2005 2011



1999 GSP Goldratt Satellite Program



The TOC Holistic Approach 8 Video Sessions

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TOC and ERP

1975 1980 1985 1990 1995 2000 2005 2011



2000 Necessary but Not Sufficient

N&S 10 CDs with the new rules




TOC & Technology Necessary but not Sufficient

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Business Strategy

1975 1980 1985 1990 1995 2000 2005 2011







TOC & Business Strategy - Viable Vision - S&T

2006 - S&TStrategy & Tactics Tree

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Retail

1975 1980 1985 1990 1995 2000 2005 2011



2009 Isnt It Obvious





TOC & Business Strategy - Viable Vision - S&T

Retail - Isnt it obvious

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THEORY OF CONSTRAINTS

5 Focusing Steps

Thinking Processes

Throughput Accounting

TOC Generic Solutions

6 N&S questions on Technology

1.Identify the Systems

Constraint2.Decide how to

Exploit the Constraint

3.Subordinateeverything to the above decisions4.Elevate the

System Constraint

5.If in the previous steps a constraint has been broken, Go back to step

U-Shape (1-5)1.UDE Evaporating

Cloud (EC)2.Current Reality

Tree (CRT)3.Core Conflict

Cloud (CCC)4.Future Reality Tree

(FRT)5.Negative Branch Reservations (NBR)

6.Pre-requisite Tree(PRT)

7.Transition Tree(TrT)

8.Strategy & Tactics(S&T)

1.Throughput (T): The rate at which

the system generates money through

Sales (SR - VC)2.Investment (I): The money tied up in the

organization3.Operating Expenses

(OE): All the money spent by the system

to convert investment into

throughput4.Net Profit (NP) = T

OE5.Return on

Investment (ROI) = NP/I

1.Operation MTO, MTA2.Finance

Throughput Acct.3.Projects Critical

Chain4.Logistics Pull

Replenishment5.Marketing Mafia offers

6.Sales Buy-in Process

7.People Empowerment

8.Strategy holistic approach

1.What is the power of the technology?

2.What limitation does it diminish?

3.What old rules helped accommodate the

limitation?4.What are the new rules that should be

used now?5.In light of the change in rules, what changes

are required to the technology?

6.How to cause the change (the new win/win business

model)?

What knowledge is there

in TOC?


Operations management Finance & Measurements Project management Distribution & Supply Chain Sales Marketing Managing People Goldratt Thinking Processes

Where TOC knowledge

is applied?

Manufacturing Distribution Financial Services Health Defence Government Public service Education and more

Industries Areas


Knowledge is Not Enough

The Relevant Knowledge The know-how for applying the knowledge:

technically and managerially Practitioners to lead (and to assist) the

implementation

To improve the performance of any system we need:

Goldratt initiated activities and organizations in order to ensure that TOC will continue after him.

Goldratt was active in all three areas.


Eli Goldratt passed away in June 2011. Four years have passed.TOC has not stopped, nor stalled!There is no lack of knowledge.A great deal of know-how has been gathered.What is needed is to preserve the existing knowledge and know-how and to provide a platform for expanding it.

So, what is next?


There are organizations that are the custodians of the knowledge (majority of them are non for profit): TOCICO TOC International Certification

Organization TOCPA TOC Practitioners Alliance TOCfE - TOC for Education Goldratt Marketing Group TOC.tv Goldratt Group AGI Goldratt Chinese Alliance Universities around the world

Custodians of

The TOC Knowledge


The TOC knowledge is in the public domain.

Learning and implementing are paid services.

TOC practitioners gain experience while implementing TOC Solutions and methodology.Practitioners can learn from each other and benefit from the collective know-how of the community.

That is the purpose of TOCPA!

Sharing Experience

oded cohen_after goldratt_eng_17 tocpa_vilnius_15 may 2015

Documents

toc methodology

toc strategic solutions

comgoldratts toc practical

multiple toc articles

toc waytoc evolution

numerous toc books

knowledge boundaries

system ofprofound knowledge