04-Antony Hynd_BA Systems_21 TOCPA_UK_11 Nov 2015_for Web

21st International Conference of the

TOC Practitioners Alliance - TOCPAwww.tocpractice.com 11 November 2015, UK

Taking Balustrading

from Good to Great

Antony Hynd, BA Systems, UK

11 November, 2015


TOC Practitioners Alliance - TOCPAwww.tocpractice.com

BIO

• Worked in construction industryand balustrading for 21 years

• Business in South Africa up to1999

• Restarted in UK in businesswith two brothers

01603 [email protected]



The Early Days TOC

• BA exposed to The Goal movie in 2009

• Followed up with the audio book, made availableto all staff

• Market focus- some jobs flowed 18x as fast asothers

• Reduced batch quantities in factory



Construction Industry

• There are too many uncertainties

• Too often information is missing

• Customer requirements are often unclear/ change/ incorrect

• Rework and snagging

• Traditionally an industry of mistrust and ongoing chaos.



Operational Problems

• Too often our estimates (times) are incorrect• It is often difficult to agree dates with clients• We are often under pressure to start projects

earlier than possible• Too many surveys have “assumptions” that

cannot be validated• Too often a site requires more than one visit to

complete the survey• There are not enough orders to promote flow



Business UDE’s

• Net Profit is too low as a percentage of Sales

• Gross profit is reducing as a percentage of sales (45% down to 29%)

• Costs are increasing faster than sales

• Cash flow problems

• Too many KPIs in all departments

• Monitoring success on orders landed

UDE Map

Too many surveys have “assumptions” that cannot be validated

Too often a site requires more than one visit to complete the survey

Too often the necessary

construction elements to complete a

site survey are not ready

There is pressure internally and

externally to visit sites that are not ready for survey

There are often missing dimensions on a survey

Too many survey

assumptions are

invalidated in installation

Too often there is an

urgent need for new

glass during installation

Too much rework on-site during

installation

Necessary things are not always

available (access,

equipment, documentation)

Too often the site is not ready for installation

All delays in construction

are passed on to installation

Installation due dates

always move out

Too many parts are

missing for installation

Too many shortages of fittings

Installation plans

change frequently

(daily)

Too many installations take

longer than planned

Installation costs are

ever increasing

Necessary things are not available on time (complete

survey information, specification, designs, etc.),

There is too many

modifications of drawings during

installation

There are too many changes (Architect and

internally)

Too often tasks take longer then

planned

Too much

Rework

Too much Scrap

Necessary things are not available on time (operations

resources, manufacturing equipment, etc.)

Too often there is a need for an urgent delivery

Too much expediting

and overtimeDelivery costs are too high

Our product offers are not differentiated

enough

Too many marketing initiatives do not result

with the desired market impact

Too many enquiries generated

are disqualified

Costs are increasing faster than

sales

Our Gross profit is reducing

(45% down to 29%)

We are under constant pressure to reduce prices

Sales are growing too slowly

Sales cycles are too

long

Competition offers are perceived

as a higher value than

ours

Good past performance is often forgotten for repeated

sales purposes

Too many construction companies

disregard offers from specialist niche suppliers

Too many site deliveries are

later than planned

Core

Problem

Successfully achieve the

Profitable Growth Targets

Ensure Monthly Growth Targets are

met

Forced to pull work forward in every

department

Hold back the start of the work

Maximise Profits

I must...

I must...

BECAUSE:

• When each department meets their monthly growth target this results in the business meeting its growth target

• There are not enough orders available to deliver to meet the growth targets without pulling forward

I must...

BECAUSE:

• Starting later uses capacity more effectively and costs less money

• Starting too early without all the necessary things required leads to rework and extra cost

In order to…

Drawing

Indication of

Due Date

Approval

Order

Survey

Specification

Installation

date

x

Pre-SurveyFirst Fix

1. Pre-Survey Full Kit Needed

2. Awaiting Survey/ Full Kit

3. Survey Complete/ Awaiting Drawing - Full Kit Complete

4. Drawing5. Drawing Approval

6.Awaiting Manufacture / Full Kit

Flow Diagram

7. Manufacture

8. Awaiting Installation Full Kit

9. On Site

x

x



It is all about managing flow…

SalesWeaver



RopeWeaver

• Ropeweaver



SalesWeaver



Sales Pipeline



Total Pipeline

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Trend

Removed from the pipeline

Early Communication

Interest

Desire

Action



Actual Sales Flow



Sales Invoice Flow Driver

• Bet on the horse that is going to win• Don’t waste time on uncertain sales



6 Months into TOC…



Strategy & Tactics



Results

• Net profit in 6 months = 12 months last year• Lead times reduced from 12 weeks to 6 weeks• Cash increased by 50%• Sales and Marketing pipeline measurements

and trends in place• We can project confidently short term

performance and identify and quantify risks• Single priority system is constantly monitored• Significant reduction on rework and snagging



Results

• Positive workforce with focus• Customers much happier, not one late

installation in the last five months• Stop counting pennies, we are going for the big

pounds• Quick turn around on smaller jobs without

jeopardizing the execution plan• Always planning ahead

Documents

04-Antony Hynd_BA Systems_21 TOCPA_UK_11 Nov 2015_for Web