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Sustainability: Moving from Common Sense to Common Practice
2016 International Conference
Leesburg, VA - National Conference Center

September 18th - 21st

How To Create Sustainable TOC Business Success

John Koehler - CEO, Eagle Cliffs Distillery

What to change:
  • A new answer to the question, what is the goal?
  • Wealth, a new dimension in Economics and business
  • Three other new parameters to add to the list, Ṩ, P and lost CF
  • A new equation to supplement CF = T – I – OE
    • - Ṩ = P + lost CF
  • Why business really has multiple constraints (or why you’re just scratching the surface of TOC possibilities if you’re not addressing multiple constraints)

What to change to:
  • The basic business cycle all businesses should plan and manage for:
    • Investment
    • External Constraint
    • Internal Constraint
  • The 11 or 26 or 35 constraints that should be managed by every business
    • The algebraic constraint in business
    • How algebraic constraints and TOC (complex) constraints interact
    • Nested constraints
    • The business constraint cycle
    • The last constraint, time, a tough nut to crack.
  • Replacing the old 5 year business plan with the new constraint plan.
  • Why we are all the constraint, how to expand the constraint plan throughout your organization
  • How to select and elevate your internal constraints, or what to elevate them to.
  • How to select and elevate your external constraints, or what to elevate them to.
  • How to set your goals, budgets and schedules for your projects
    • Start small for success
    • Grow small for success
    • How to size your growth to optimize your business constraint path
  • When your business plan is obsolete
How to Cause the Change:
  • Start your own Business
  • Why I would not try to change a non-TOC business
  • Hints for those who must work within an existing organization
The three key TOC skills required are Internal Constraint Management as addressed in "The Goal,” External Constraint Management as addressed in "It’s Not Luck,” and Project Management as addressed in "Critical Chain.” Attendees should have a firm understanding of all three disciplines. Practical experience is useful.

Since a complete outline of Nu-Business will be provided, no topic will be delved into in great depth. It is the intent to provide a complete overview to provide attendees with a full list of tools and the process by which to use them to begin to develop Nu-Business management of their own businesses. I may illuminate concepts with examples of his development of his craft distillery business.

I have been fully immersed in Nu-Business for the last two years and can’t imagine conducting business any other way. I am confronted weekly by vendors, customers, and well-wishers that offer business advise and opinions that are the common practice you and everyone else lives with, but is completely wrong for growing business successfully.

Learning Objectives:
  • Complete overview of Nu-Business TOC business model.
  • All concepts required to apply Nu-Business.
  • The unrecognized TOC business cycle.
  • TOC, algebraic, and nested constraints, and how they interact.
  • Learn the dimension of wealth, and that it is absent from classical economic study.
  • Why wealth should be considered as the proper goal in lieu of profit.
  • Add Production Capacity gain, Investment and lost Cash Flow to the list of fundamental dimensions of TOC.
  • Add another equation to the fundamental practice of TOC relating those dimensions.
  • Why business really has substantially more than one constraint.
  • Why we are all the constraint, and the timeframe implications to planning throughout your organization.
  • Start SMALL.

John Koehler is CEO of Eagle Cliffs Distillery, which produces the best potato vodka west of the Mississippi. He has been a practicing Jonah for about 19 years. He began studying TOC at Washington State University in about 1990 and has dedicated over twenty years to the endeavor of developing a superior approach to entrepreneurship based upon TOC. Eagle Cliffs Distillery is the second business he has started in order to apply and test his ideas. His first business was an unqualified success by SBA standards, but not by his. In the last four years all of his insights have coalesced into a comprehensive business model, Nu-Business.

He holds a BSME and was a licensed professional engineer who spent about 25 years designing custom production machinery for about every industry in the US, becoming in the process an incidental expert in manufacturing practices. His customer list includes Nike, Hewlett Packard, Intel, Boeing, Dodge, and Weyerhaeuser. He returned to college late in life to pursue a Masters Degree in Engineering Management, where he was fortunate enough to have Dr. James Holt as an instructor, who declared he would teach the correct way to approach business economics (TOC) and let the class read the text if they wanted to learn the incorrect approach. Health issues have slowed his latest business venture, but he is still working to prove his TOC insights.

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