In this presentation, the speakers will show how this Japanese well-known company applies TOC flow solution to their environments, when there is a major need to show quantifiable and meaningful very fast results.
This company makes their own-brand servers and also sells other-brands like CISCO and Oracle to their clients. And they don’t sell only servers, but also sell server set-up services, installing OS and Middle-wares etc. Their production process consists of design, implementation, integration, verification and validation.
Why was there a need for change?
When starting a TOC project with a huge Japanese technological company, we learned that due to a lack of synchronization in production, too long a production lead time and very high WIP (of very expensive equipment), managing cash flow was justifiably the main complaint of the top management. There was an urgency to show that we can reduce the WIP and therefore improve the cash flow by reducing production lead time, and to prove we can do this FAST.
Step1: What to Change?
In order to get fast results as requested, we implemented some activities to reduce overproduction and the extensive multitasking. An additional benefit we anticipated from using better flow was to move some design members to another valuable works.
Step2: What to Change to?
Taking into consideration that touch time is a relatively small fraction of production lead-time, and that there is a relatively low amount of uncertainty in the operation, these are the perfect conditions for the MTO template. In Japan due to cultural reasons, mandating high due date performance (DDP), companies compromise by quoting relatively long lead times. This locates them increasingly on the right side of the U curve and increases both overall WIP levels and the amount of chaos on the shop floor.
Step3: How to cause the Change?
The real challenge and what we want to bring to TOCICO as a lesson is how to do all that very fast without the need to install software, and to focus on real change of behavior.
Using Being Co, and Progressive flow as a consulting team, including research of their environment and buy-in their board members, building a fast implementation plan, making a guideline for this implementation, implementing flow mechanisms, trainings the middle managers and Gemba people, many POOGI activities to make better flow.
How do we measure, refocus, sustain and grow the change?
Setting KPIs in POC are below;
1. Lead time. Target is at least 20 % shorter than before. Actually, it becomes above 35 % in only 4 months.
2. Total yield / Total lead time per month. We create a new comprehensive KPI.
3 learning objectives:
- In order to have very fast results in POC in a very big company, you need to focus on people behavior and not on the technicality of the implementation.
- Once you find constraints, Kaizen activities on the constraints are changing figure of KPIs.
- Champions are critical factor for success project.
Takashi Kudo is a Senior Consultant, TOC Consulting Div., TOC Business Unit, Being Co., Ltd. Takashi Kudo is one of the Japanese pioneering TOC consultants certified by TOCICO, and has been leading various projects in many industries such as ship-building, aerospace, IT, R&D, supply-chain and retail. He has always been a key player in Japan who introduced CCPM as a brand new methodology to Japanese Industries, and now expanding his field not only to other TOC operational flow applications for Production, Supply Chain and Retail, but also TOC strategic value applications. Prior to his TOC career for a decade until now, Takashi Kudo has been a consultant at organizational development consulting firm, and this experience of dealing with human and organizational behaviors has a lot of advantage in his current carrier along with Theory of Constraints. B.A in Literature from Waseda University.
Masanori Tomoda Chief Specialist of Platform Center, Platform Service Design Center.
Yaniv Dinur is recognized worldwide as a leading authority on the Theory of Constraints (TOC), and was a direct student of Dr. Goldratt from 2006 until Dr. Goldratt last day. Until June 2013, Mr. Dinur served as the Global Accounts Director and APAC Regional Director at Goldratt Consulting. Mr. Dinur has led some of the biggest TOC projects over the past decade in Manufacturing, Supply Chain management, Sales and Marketing (SFS), CCPM and Retail industries all over the world.
Yaniv has established Progressive Flow Ltd. at mid-2013, a TOC and CCPM global management consulting company, working with leading organizations across the world. The company was established around the fundamental belief that organizations can attain quantum growth without jeopardizing stability. Yaniv is also the founder and the Chairman of Progressive-Labs Ltd., a start-up developing TOC retail and supply chain breakthrough software.
Prior to his TOC career, Mr. Dinur has served in several leading high-tech companies as Worldwide Vice President of Sales, Marketing and Business Development including: Comverse (Nasdaq 100, CMVT), Metalink (Nasdaq, MTLK) and Emblaze (LSE, BLZ). He also served as CEO of a start-up company (Knownet Inc.) and was a Director of Sales at Rafael in the defense sector.
Mr. Dinur is MBA graduate from the Technion, Israel Institute of Technology, and a B.A in Economics from the Bar-Ilan university. He graduated (Cum Laude) the Israeli Naval Academy.