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2015 TOCICO International Conference

Transforming Industries Track

Guilherme deAlmeida
Engagement Director
Goldratt Consulting

Silverio DeSouza
Engagement Director
Goldratt Consulting, Brazil

Capturing the Essence: From Mistakes to Transformation
September 8, 2015

There is no longer any debate about whether a company should strive for continuous improvement. Now it’s a matter of survive. Dr. Eli Goldratt verbalized the 5 most common mistakes people do when trying to improve their organizations or their lives:

  • We try to improve everything that be can be improved
  • We don’t always get the contribution and buy-in from key stakeholders
  • We don’t always develop a clear and prioritized plan properly resourced to achieve our goals
  • We lose focus when implementing our plan by multitasking and or getting distracted by less important issues
  • We don’t always learn the right lessons from experience

Even though they are valid statement in itself, there is a clear causal relationship embedded.

Companies spend a great deal of resources on trying to define what should be changed and how to make the changes happen as fast as possible. In other words focusing on the transition from current to future reality (looking forward and not backward). When looking at the statements above, the first 4 try to address that point. The last one is usually overlooked or sometimes even neglected. On the other hand is the one that clearly provides the better opportunities for learning and prevent the recurrence of the others.

Therefore we decided to embark in a time machine and travel back to one of our main implementation in order to get a better understand of what went wrong and propose an alternative solution.

We are going to use the case of the implementation of a Viable Vision Project in large women shoe manufacturer.

The main challenges we faced during this implementation:

  • Smoothing the load
  • Managing production capacity
  • Alignment of Metrics
  • IT Offer perception
  • Bonus scheme

Probably the biggest challenge in this environment is the huge artificial seasonality on sales caused by the prevailing mode of operation. Actually about 70% of the season sales orders are concentrated in the first 2 months before the season launch. Moreover, in this environment the manufacturers offer thousands of SKUs for each season.

To prevent hiring and firing people, all shoe manufacturers try to allocate some of their production capacity in some subcontracts. But as being part of of 2 different business entities, not necessarily sharing the same objectives, conflicts stand in their way to reach a sustainable (win-win-win) solution.

We will describe each one of this challenges, conflicts, underlying assumptions and an alternative (different) direction of solution. By revisiting this implementation we aim to:

  • Recheck the validity of some key assumptions and the buy-in process
  • Develop an alternative solutions to be tested when facing similar situations/environments/challenges

Guilherme Venanzi de Almeida is Engagement Director at Goldratt Consulting. He is BSc Mechanical Engineer by Universidade Mackenzie, Executive MBA by CEDEP-INSEAD, Finance by HEC-Paris and Industrial Management by Fundação Vanzolini –EPUSP.

TOCICO Practitioner Certification in Supply Chain Management and Critical Chain Project Management.

Guilherme has more than 25 years background in the industry. Out of it 20 years working in the automobile industry in Brazil, Europe and USA. Worked on several areas like operation management, project management, product development and business management.

Besides that Guilherme has a vast experience implementing improvement projects using TOC, Lean and 6 Sigma in mining, consumer goods, retail, services and Viable Vision implementation projects.

SILVERIO DE SOUZA is Engagement Director at Goldratt Consulting in Brazil.

Large experience with industrial, project management and business consulting. Working over the last eight years with Theory of Constraints implementations in the areas of production, supply chain, retail, project management and finance and Viable Vision Projects in Brazil and other South American countries.

Executive MBA COOPEAD and Master in Project Management – Federal University of Rio de Janeiro – UFRJ, Certified in Supply Chain Logistics – TOCICO, PMP – PMI, Graduated in Business Administration.

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