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2019 TOCICO Conference Day Two Schedule & Descriptions
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July 15th, 2019 
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8:00-8:45 Registration and Breakfast (Red Oak Foyer)
8:45-9:00 Morning announcements (Red Oak Ballroom) TOC 2.0: Introducing the Alex Rogo levels - Kobus van der Zel

Embraer built a heritage out of challenging the impossible. The typical cycle of the development of a new Aviation Program is 7 to 9 years. The E2 Program is not only a new airplane, but also a new industrial architecture, a new supply chain, a new and more connected airplane for passengers, operations and maintenance, a new marketing plan and a new socioeconomic improvement enabler. The Theory of Constraints has been applied, making effective use of the Critical Chain. Deviations have been reported through a simple color code (green, yellow, and red). The bike race image has been used so everyone challenged to work a little bit faster and a buffer at the end of the Program accommodated unexpected delays. The Program Management team would focus all of its energy on supporting the last bikes (constraints) always using five steps focusing. The greatest achievement of the E190-E2 Program was proving that it is possible to deliver a new airliner two months ahead of a very challenging original schedule (5 years from Business Plan Approval/Program Launch to First Revenue Flight), on a very tight budget and better than the most competitive spec in its crossover jet category, with a mature entry into service.

An internal project team has conducted a detail analysis of an existing sizable mining operation. It has determined that an OPPORTUNITY to change the value (NPV) of this business by a paradigm shift in capacity release. The internal project team needs 4 distinct levels of approval to execute the execute the proposed change. Does this business need trusted adviser (external) help to get the assistance? Provocative point: Do need an external assistance (trusted) to obtain approval for a paradigm shift? Counter point: Do NOT need an external assistance (trusted) to obtain approval for a paradigm shift. A leading 1993 the largest Diamond Mine in the world, Argyle Diamonds conducted an end to end to business review to look at the future and life of this significant asset. This project was led by the Business Analysis unit within the Argyle Diamonds Ming operations. After 6 months of analysis 100 initiative were tabled to that could increase the life of mine for (LOM) for this asset. The #1 initiatives involved a radical approach to valuing the output of this mine. This was a radical change from the business operating assumptions. The session discusses the how the approval was obtained through the 4 layers of executive and corporate management to implement the change.

Abstract is forthcoming.

In April 2017, I was appointed CIO of VIVO, the largest telecommunications firm in Brazil, with zero experience as a leader of IT Projects organizations, and zero experience with TOC. Within three months, my leadership team and I had decided that blending the TOC Thinking Processes, Critical Chain, Agile, and Lean offered the best solution direction to pursue significant improvement of our 6,000-person IT project portfolio. We established an aggressive goal of doubling the throughput of project completions, and branded our improvement initiative accordingly as IT2X. This purpose of this presentation is to share VIVO's progress towards this objective, as well as key challenges and obstacles and how we are overcoming them.

What is limiting the success of TOC in becoming the main way of managing organizations, even for TOC experts in TOC-managed organizations? TOC Equity Partners (TOCEP) is the case study being analyzed to further our insight into how TOC-managed organizations can become ever-flourishing (by sustaining exponential growth, stability and harmony). TOCEP is focused on buying, improving with TOC and selling (several years later) Supply Chain organizations (retail, manufacturing and distributors). The three managing directors of the organization all had some degree of TOC knowledge and skills, with the exception of Henry Camp who has a very high level of TOC expertise. Dr. Ferguson provided consulting services to TOC Equity Partners in 2013 for about six months resulting in the creation and validation of its Transformational Strategy and Tactic Tree (TSTT) to level 3. Performance dramatically improved during that time, yet that TSTT was not fully utilized, nor were the lower levels of it completed as agreed. She continued for years to try to influence the changes needed, even bringing in Eli Schragenheim to team up with Henry and her. This presentation focuses on understanding that even though TOCEP has been flourishing, it was still not to the degree possible had the TSTT and other key TOC concepts been fully embraced.

A one-day workshop for newcomers to lead through the basic methodology of TOC for any supply chain. From the Five Focusing Steps, Drum-Buffer-Rope, Simplified DBR, including the Buffer Management, Planned-Load, Make-to-Availability, Replenishment, Virtual buffers, etc.

Coke (used as fuel in Blast furnace) is produced in Coke Oven Batteries which consist of alternately arranged heating walls and Ovens. For efficient process, optimal heat distribution over the entire heating wall is essential which necessitates the measurement of temperature. It is done manually in 3 shifts by 3 persons daily, directly from the oven top by opening the flue caps to measure temperatures with the help of a hand-held pyrometer in harsh environment. Given that steel industry is labor intensive, manpower productivity has been at the forefront in all policy making and Tata steel is making concerted efforts in this direction. Present case explains the application of TOC in achieving the objective of improving manpower productivity at Coke Ovens. As surfaced in Core conflict cloud, it is evident that deploying more manpower provides the advantage of frequent update of data while increasing the risk involved in safety. Therefore, any underlying assumptions which give rise to the conflict should be addressed to derive suitable injections. The conflict of deployment of manpower was resolved by identifying a new win-win solution. The Innovative injection has a huge potential (patent filed) and has a scope of wide implementation across industries.

TOC solutions require people to go through paradigm shifts. Paradigm shifts are extremely challenging to adopt, to implement and to sustain as they require people to give up on their intuition and past experience and mostly to trust that the change agent can safely take them from the existing paradigm to the new one. The natural people turnover in organizations further enhance this challenge. What if it was possible to shift people paradigms without taking them through a paradigm shift, but rather through a series of changes that they have high level of certainty are required, that they chose based on their existing experience and intuition, that everyone relevant in the organization believes that the change is required and correct and that after a number of such changes the paradigm practically shifted? In this workshop we will examine the possibility of having such a process, how to apply it to different levels of the company and demonstrate how using it in production unavoidably leads from existing paradigm to the DBR paradigm.

Abstract is forthcoming.

Jean Piaget, the Swiss developmental psychologist and polymath defined structure as: wholeness, transformation, and self-regulation. Theory of Constraints 5-step focusing process consists of two different logical levels: (1) exploitation and (2) subordination and exploitation. Both are consistent structures within themselves. We most often fail when we concentrate on exploitation at the expense of subordination, this is part of the old paradigm. Theory of Constraints becomes truly transformative when we concentrate on subordination fist, the remainder of the system becomes self-regulating. This presentation explores the gap that exists between different logical levels; first with examples from the natural world, secondly with similar examples from our industrial and organizational world, and finally Theory of Constraints in more detail. Several of the key enabling actions, and several of the key disenabling reactions are then examined.

In this rare appearance, WiseTech CEO Richard White will discuss his journey from starting in his garage to achieving the Viable Vision multiple years in a row.

12:15-1:50 Lunch (Burnham Dinging Room) and Exhibit Hall (Red Oak Foyer)

Recently promoted to CEO, Mr. Saraf will tell the story of how he applied TOC principles and transformed JSPL.

This presentation will highlight two different manufacturing environments where implementing T-DBR was absolutely critical because the constraint was internal and order sequence mattered. In these environments, implementing S-DBR would have negatively impacted throughput and due date performance. Sequencing and scheduling mattered the most. In fact, the amount of work required to precisely schedule the critical resources (the Drums) was so demanding that we refer to these two implementations as examples of Extreme Drum-Buffer-Rope (X-DBR). The bulk of the presentation will be spent on sharing our thought process as we tried to understand the problem and design the direction of the solution in two environments characterized by very high dependence. In addition, we will highlight the Drum Hours Lost measure of buffer management that we introduced to further increase throughput.

Objective: To share a general solution for a major problem of manufacturers, particularly for Aggregating Manufacturers (A-Plants) and how one of their suppliers can capitalize on resolving it. The opportunity: There is a $10 trillion dollar in sales world market that desperately needs a solution that is already well developed within the TOC community. The problem for A-plants is: if even one raw material is missing the production is delayed. If only all suppliers to this industry were TOC companies, the problem of shortages would already be solved. My estimation is that the direct annual fees from helping this market would be $40 billion plus $10 billion in secondary services. Tertiary effects from an improving world economy, I leave to others to calculate.

Significant advance has been made in the field of software development with the introduction of Agile and Scrum. Both seek to introduce a mindset of flow and also handle the intrinsic problem of scope variance that exists in software development. Despite the significant success Agile (and Scrum) have lived with significant limitation that have not yet being solved: the difficulty to determine and deliver to specific due dates, the ways each sprint can be used to pressure resources to be locally optimized and the inducing of batches (each sprint) that work against the principles of flow. In this presentation, we will present a solution that implements the flow principles to the development of software limiting WIP and assuming a one-piece flow work release. Questions like how to measure WIP, how to choke the release and how to estimate delivery dates are treated. The solution was implemented in a large Brazilian Software company and we will show the obstacles and specificities involved as well as results like increasing global productivity of the team by 108% and reducing 58% the lead time to deliver.

How to manage the conflict between teaching and consulting in order to improve top management trust in consultants? We will elaborate an insight applying the TOC Thinking Process to answer the POOGI questions. What are the main conflicts we all face in the process of trust generation? What are the assumptions we should recognize and invalidate? A proposal of policies, measurements and procedures to improve trust in the interaction between top management and consultants.

A one-day workshop for newcomers to lead through the basic methodology of TOC for any supply chain. From the Five Focusing Steps, Drum-Buffer-Rope, Simplified DBR, including the Buffer Management, Planned-Load, Make-to-Availability, Replenishment, Virtual buffers, etc.

Following the successful implementation of an end-to-end supply chain solution for Microsoft in 2015, Goldratt Research Labs (GRL) was approached by a major book publisher in 2018 to help improve their supply chain by reducing shortages and surpluses. The objective was firstly to investigate the extent, consequences and causes of surpluses and shortages of their titles within retailers and their own DCs. Secondly, they aimed to jointly develop and test a solution that could significantly reduce shortages and surpluses and the related lost sales and profitability potential for both themselves and their retail customers. The model also contains more complex inventory management rules including Dynamic Minimum Order Quantities and Dynamic Safety Stock calculations Simulating a book publisher supply chain proved to be a challenging exercise as the type of demand and production characteristics is very unique to the industry. The model provided a way to test, evaluate and optimize the proposed Dynamic Buffer Management (DBM) solution in a safe risk-free space which would otherwise have been impractical to test in the real world. The model provides invaluable insight for both the publisher and its retail partners.

The discussion was over and we were rushing to find a quiet place in Berlin to rethink each thought. Late event, organized by Michael Demere, wasn;t announced in the official programme of the TOCICO Annual Conference 2017, but it addressed the question of our lives. It was no doubt we finally found a solution, we just needed to calm down to connect the dots. A few hours later THE STRATEGY OF THE MOST PROFITABLE INVESTMENT FUND was ready and we, three TOC partners, toasted to inevitable success. This really seemed to be our roadmap to escape consulting. A thing that we've been doing well and at the same time hated for the last 10 years. 30 years of combined experience and combined frustration. You must be a fool to consult others how to move on the red curve while staying below the green yourself for years. 2 years later we remain on the same path. No changes in the strategy. No panic after yet another fail. No cash (as of March 2019). And no doubt our first cash-constrained plant that we run since the end of 2018 will grow from ¬ 3,5M to ¬ 100M in a few years.

This TOCICO presentation unpacks the elements required to deliver a successful project with CCPM in a highly volatile, unpredictable environment where none of the collaboration partners know anything about TOC nor CCPM. The Project involves the separation of shared Information, Telecommunication infrastructure and administration functions between 2 businesses under the same ownership structure. It was imperative to do this without disruption to normal business especially as the businesses approached their peak season. From the 20 plus years of experience, the company ICT manager, has found projects of this nature to rapidly spin out of control requiring significant additional time and effort. Often with budget overruns, frequent disruption to day to day business transactions, coupled with high stress, and the inevitable late delivery. The presentation will walk through the project timeline from inception to end and highlight the many potentially damaging curve balls that could/would derail the project. We show how these where quickly and calmly dealt with to recover buffer penetration and avert time blow-outs. CCPM allowed us to identify and resolve issues quickly through active engagement, collaboration and delivery of context with our partners. By the end we can say we managed to tame a dragon. The presentation assumes a basic knowledge of CCPM.

More and more practitioners of systems improvement have come to realize that the Theory of Constraints (TOC), Lean and Six Sigma are actually very compatible and synergistic with TOC often providing the focus for where to apply the Lean and Six Sigma tools. In spite of this, TOC is not only still perceived by many as non-compatible with Lean and Six Sigma and some practitioners of Lean and/or Six Sigma continue to promote the perception of incompatibility. One source of this continuing perceived conflict is TOC's focus on balancing flow in contrast to Lean s focus of balancing capacity. Part of the underlying cause of this perceived conflict is how waste and balance are defined, specifically as it applies to individual process cycle times and capacity and how those definitions are then applied to the design of a production system. This presentation will look at how the conflict can be resolved by challenging the assumption that TAKT time and capacity should be the same. We will see how system balance can be attained by focusing Lean tools on the cycle time side of the system design and the TOC tools on the capacity side.

4:00-4:30 Exhibit Hall (Red Oak Foyer)

Tata Advanced Materials Ltd. used TOC principles to double its operational productivity, turn around from loss making to profit making, and sustained the profit increase over the last four years!

5:30-6:00 General Membership Meeting (Red Oak Ballroom)
Evening Day 2 Fun Activities - Night Golf (9 Holes with lights/rentals); or Bowling (Three lanes reserved)

Register for the conference today!