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TOCICO International Conference - PROGRAM

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July 16-19, 2017
Melia Hotel in Berlin, Germany.


Humberto Baptista - Vectis Solutions CEO 
   
 

 

In trying to answer the long standing question: “What is TOC?” Goldratt alluded to the story where a stranger approaches the sage Hillel (sometimes referred to as Rabbi) and asks him to teach all of Judaism (the Torah) in the time he’s able to stand in one leg. Hillel responds with: “Don’t do unto others what is hateful to you, that is the whole of Judaism. The rest is consequence, go and study”. The stranger impressed with the answer became a disciple and followed Hillel’s teachings.

In 2010 Goldratt presented the introduction he wrote for the TOC Handbook and included most current definition or summary of TOC: Focus. And by Focus he means not only to do what must be done, but also (and especially) not do what should not be done. And mimicking Hillel Goldratt also prompts us to think when he implies that: “TOC is Focus, the rest is Consequence, go and learn”.

As a thought provoking proposition this was extremely well succeed and many conversations and discussion stemmed directly or indirectly to the topics covered in the definition and in the rest of the introduction.

It is now time to add another topic to this beautiful introduction and explore what are the consequences of defining TOC as Focus.

Some of these are:

·      What is the fundamental flaw in the traditional view of human ethics and how TOC solves it

·      Why the main obstacle between the animal and human nature has not yet been overcome and the role of TOC in it

·      The main limitations of human beings

·      The five principles of TOC and their source

·      The fallacy of big x small TOC and Local x Holistic TOC

·      The fallacy of Logistical x Thinking Processes tools

·      What is the core essence of TOC and what is consequence?

 We hope that with this renewed view many conflicts and setbacks experienced in the past years will be solved and that TOC will contribute more and more to the world’s well being.

 

In the publication of the first Viable Vision S&T trees we see for the first time a comprehensive and yet expandable collection of the know-how of how to implement TOC tools (sDBR among others) in a systematic fashion. The usage of S&T not only clarifies the logic (assumptions) behind the actions and their consequences, but allows for the logic to be tested and if necessary adjusted to fit more and/or different situations and environments.

Much has been learned in this period but little (if at all) has been documented back in the standard S&Ts, in this presentation the published knowledge is presented and integrated in the standard S&Ts branches relative to sDBR implementations.

We will cover:

·      Limitations to the concept of “choke the release”

o   Black saturated environments

o   Order-less plants

·      Production cells as CCRs

·      Measurements and their role

·      Placing of inventories

·      Mixing MTO and MTS

·      Long Lead time environments

(The resulting branches will be made available publically for usage and review by the community.)

 

Finance and accounting both deal with money and quantifying its positions and flows. But they serve distant purposes and, but while the former is directed to measure and guide decision making the latter is a reporting tool to show where the amounts are distributed in the organization. Using one in the place of the other not only leads to distorted results but also pollutes the tools with adaptations and deformations that compromise even the original objectives of each.

In this workshop we’ll abandon the term “Throughput Accounting” and embrace the Financial Compass as the proper way to describe TOC tools dedicate to support good managerial decisions.

We’ll cover the basics and expand on them in the following flow:

1.     Why measure anything?

a.    And money?

2.     The definitions of T, I and OE as they were and are viewed now

a.    Including the interchangeability of I and OE

b.    And the criteria for proper classification between TVC and OE

3.     The relationships with Profit, ROI and Cash Flow and why The Race is incomplete

4.     Revisiting the TVC concept

a.    And its two components and their main difference

b.    Why I is usually calculated wrong

5.     The role of Time in financial decision making

a.    The Dilemma of estimation I in investment opportunities and how to solve it

b.    Classifying Investment opportunities: the Good, the Bad and the OMG

c.     Engineering Investment Opportunities

6.     The use of T, I and OE in decision making

a.    The need to use the 3?

b.    Simplifications and their limitations

c.     The most popular one: Throughput Per Constraint Unit

                                              i.     Its applicability

                                            ii.     Its limitations

                                          iii.     Its consequences

                                            iv.     What about multiple CCRs?

                                              v.     How to solve both? (not with LP, by the way)

d.    Evaluating stock and mix

7.     The impact of using the Financial Compass

a.    For the organization

b.    For activities like budgeting, etc.

8.     Q&A

The workshop will be interspersed with exercises and simulations so that the concept may be more explored.

Humberto R. Baptista: Vectis Solutions CEO, member of the TOCICO Board of Directors, former member of Goldratt Group. Led from VV projects on Consumer Goods and Retail to manufacturing, projects and services, translation (TOC Insights, GWS in CCPM, S&Ts, etc.), taught TOC VV Application Experts and Project Leaders worldwide. Current interests: TOC Principles, Implementations by S&Ts, advanced TOC Finance, TOC Retail, TOC NPO (Government, Health and Education) and TOC4E.