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Why successful Theory of Constraints (TOC) implementations fail after some time? Is there a common theme that jeopardise all TOC Implementations? In this presentation I answer these questions and propose criteria to avoid the pitfalls of successful implementations.
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1© 2014TOCICO. All rights reserved.
TOCICO 2014 Conference
REAL TOCWhy Successful
Implementations Fail, Fade or Revert and What to Do About It
Presented By: Humberto R. Baptista
Date: June, 11th 2014
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
From Eli
• Three laws of good administration:
Be sure the initiative will
succeed
Be sure its SUCCESS will
succeed
Stop looking for negatives
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
The problem
No Real POOGI
(not even close)
Time
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
The Hypothesis
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Core problem
• Not abide to (at least) one of the Core TOC Values:
Newton (Principia)N&S # 2, The Choice, …
SLP # 7, The Choice
TQM,Intro to
Science of Management
The Choice, Never Say “I Know”, SOSOG,…
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Case 1
Construction fixtures company (Brazilian branch of an international group):
• Successful production functional implementation (up to the point the production manager (youngest top manager locally) became the Americas Production Director of the group)
• Sold by one consulting company with me as the lead consultant
• No continuation (failure to sell the natural continuation)
My personal dilemma
• Approach the company to sell the next step (Sales & Marketing)
• Let them be
Result Dismantling of the of local company and loss of knowledge and jobs
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Cloud 1
Be Moral
Respect the original Contractor
Refrain from selling the next
step
Try to sell the next step
Help the company
Consistency?
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Case 2
Large department store
• Beautiful (and difficult) pilot (significant increase in turns, decrease in inventory, etc.)
• Strong champion
• Systems unable to deal with SKU on all the mix
My personal dilemma
• Change the S&T keel (possibly dulling it)
• Insist on the “standard” first entities on the S&T
Result Deceleration and distortion of implementation small results
See my presentation on TOCICO 2009 (Anatomy of a VV S&T)
See Silverio’s and mine presentation on TOCICO 2014 (Pilots TOC: navigating the Change)
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Cloud 2
Strong Implemen-
tation
Support Champion
Wait for SKU system to be programmed
Start implementation w/o
full SKU support
Quick results
(CfGS #5)
Variability?
See my presentation on TOCICO 2011 (Retail TOC – Get Your Hands Dirty on the Implementation
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Case 3
Large apparel factory (integrated into a retail) :
• Strong implementation (unusual environment, quick results)
• Strategic position of the factory (supplied 45% of the retail’s sales with – now – very short LTs)
My personal dilemma
• Fight the decision to lay off an entire shift (and more) or
• Take care of the many other important aspects in the implementation
Result Deceleration of improvement (almost halted POOGI) and 8.000 lost jobs.
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Cloud 3
Ever Flourishing Company
Protect the project
Cater to other elements of the implementation
Make a stand against layoffs
Protect Company’s
future
Respect?
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Core Cloud
Long Lasting Impact
Secure Relationships
Tolerate TOC value(s)
violation
Be adamant about TOC
values
Secure Future
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Core Assumptions
Long Lasting Impact
Secure Relationships
Tolerate TOC value(s)
violation
Be adamant about TOC
values
Secure Future
- To be liked we must tolerate what other people do- Unconditional love means accepting everything
- Without any of the TOC values wasting human potential is certain- All TOC values are necessary to allow a very fast growth and high stability
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Evaporating
• Challenge the assumption:
• With:
• Therefore:
- Unconditional love means accepting everything
- Unconditional love means accepting everyone
Tolerate TOC value(s)
violation
Protect people from self-mutilation
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
What can prevent the problem
To implement:
we need:
• A clear shared CRT of the damage of tolerating TOC values violation (have you ever done it?)
• Meet each significant potential violation (or past violation) with unconditional love, meaning: making clear the damage sustained by the person and
• Draw the persons’ cloud (as a dilemma, never as an interpersonal conflict)
• Evaporate it and demonstrate Qualitatively and Quantitatively (T.I.OE. if applicable) the superiority of the injection compared with previous actions for the person.
Protect people from self-mutilation
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
Thank You
• Comments, questions?
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© 2014 TOCICO. All rights reserved.
TOCICO 2014 Conference
About Humberto
• Husband and father changing the world one person at a time
• Scientist seeking to apply science to people’s endeavors
• Hunter of hidden assumptions
• Teacher, student and colleague of students
• Strong believer of values over tools
• Practicing atheist and [email protected]