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|Strategy and Tactics Annotated Bibliography By James F. Cox III|
Abuhab, M. (2010). How did a Brazilian company boost its profitability - Strategies and processes to manage the dilemma pull X push. TOCICO International Conference: 8th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
This presentation provides a discussion on how Big Frango increased its sales with lower inventory levels through implementing strategies and processes to manage the supply chain dilemma between retailers and suppliers implementing VMROI (vendor managed return on investment). Big Frango is a S350 million total sales company comprised of three plants and six distribution centers. 400,000 chickens are processed daily. 50% are commercialized, 20% for wholesalers and 30% for exportation. 35% is fresh and 65% is frozen. Big Frango's biggest UDEs is sales are lost due to products unavailability in the stores. The supplier and retailer conflict is A Increase the return on investment; B Increase sales; D Push and C Reduce inventory D' Pull. The VMROI solution is based on exploiting shelf space by improving replenishment frequency, implementing automatic replenishment; replacing slow movers with fast movers; change product mix; apply right measures; etc.
Arevalo, J. and M. Birrell (2010). Viable Vision implementation: How to create and sustain a win-win-win. TOCICO International Conference: 8th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
This session provides insights from the practical experience of Viable Vision Projects that demonstrate the basic principles where the Viable Vision is grounded in a win:win:win that delivers the decisive competitive edge. Lessons learned relate to the make to order reliability and mixed make to order and make to availability environments in addition to the pay per click environment. The questions of What, Why, How, and Who to test launch had to be answered. The test launch is required to validate the assumptions about the significant need of the clients, their reaction to the offer and moving from the paradigm of reduced prices. The presentation should be treated like a pilot; things will go wrong and one must learn from the pilot how to improve the presentation. Based on the presentation one must do the proper cause-and-effect analysis to gain new insights. The definition of competitive lead time and how to assess the overall benefit of shorter lead times are given.
The Viable Vision (VV) strategy and tactic (S&T) trees are both powerful and insightful, but present apparent divergence with previous well-established TOC processes, in particular the thinking processes and the five focusing steps. This presentation closes these gaps and presents the inner structure of the VV S&Ts and how they should be understood both in terms of modifications and in terms of execution.
Baptista, H. (2009). Weaving together the thinking processes and the strategy and tactic trees. TOCICO International Conference: 7th Annual Worldwide Gathering of TOC Professionals, Tokyo, JP, Goldratt Marketing Group.
This presentation was given by Guilherme Almeida. In the past few years strategy and tactic trees (S&T) re-emerged as a powerful tool to guide large projects like Viable Vision (VV) ones. The cause-and-effect logic is apparent in the S&Ts, but it is not clear how the S&Ts relate to the thinking processes (TP). This presentation maps the logic and communication used in the TP and the S&Ts to their roots and reconnects these two thinking tools. The presentation covers where the TP intersects with the S&Ts and where they don’t, what the boundaries and applicability of each are and how they should be used in concert.
The application of the TOC solution for retailers is covered in good depth by the VV retailers S&T, but is this enough? Are all retailers the same regarding the implementation of the TOC solution? In this presentation concepts are exposed and results from a large retailer implementation are discussed to share the logic governing this environment and what it is required to successfully implement the TOC solution for retailers.
Baptista, H. (March 19th, 2010). Weaving together the thinking processes and the strategy and tactics trees. TOCICO Webinar Series. TOCICO, Theory of Constraints International Certification Organization.
In the past few years strategy and tactic trees (S&Ts) re-emerged as a powerful tool to guide large projects like Viable Vision ones. The cause-and-effect logic is apparent on the S&Ts, but it is not clear how do the S&Ts relate to the thinking processes (TP). This presentation maps the logic and communication used in the TP and the S&Ts to their roots and reconnects these two thinking tools. The presentation will cover where the TP intersect with the S&Ts and where they don’t, what are the boundaries and applicability of each and how they should be used in concert.
Barnard, A. (2003). Insights and updates on the theory of constraints thinking processes. TOCICO International Conference: 1st Annual Worldwide Gathering of TOC Professionals, Cambridge, England, Goldratt Marketing Group.
The objective of this presentation is to share some insights for further development on simplifying and possibly improving some of the key TOC thinking processes (TP) tools used to enhance our ability to construct and communicate solutions that solve problems… The presentation is organized to provide: 1. An executive overview of the TOC describing how the TP simplifies complexity by providing the processes and insights to find the few leverage points that govern performance for building the necessary levers (holistic rules) to improve the system as a whole. 2. The Viable Vision is applying the TOC five-focusing steps to the boardroom and using the TP to overcome situations where the company is stuck… 3. Strategy & tactics (S&T) tree can be used to expose inherent conflicts, to identify the problems that block exploitation and/or elevation as the starting UDEs to improve speed and reliability of the analysis. Five types of assumptions can be used to check S&T logic: 1. Assumption of group sufficiency –missing link. 2. Assumption of part sufficiency – weakest link. 3. Assumption of part necessity – conflict condition. 4. Assumption of best alternative – best practice considering limitations. 5. Assumption of sequence – focus/priority condition. The causes of these erroneous assumptions are due to a lack of understanding of the system, to not understanding the governing laws and to not identifying its system constraint.
Barnard, A. (2013). Strategy and tactic (basics workshop). TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
The introduction by Dr. Eli Goldratt in 2002 (Goldratt 2002) of a 'new' TOC-based Thinking Process (TP) called a 'Strategic & Tactics' tree (S&T) is being viewed by more and more executives and managers, as one of the most important breakthroughs in ensuring that holistic business or organization strategies are defined, properly validated, communicated and implemented to achieve harmony within organizations. The S&T can for the first time provide us with a practical process and logical structure for defining and communicating all the necessary and sufficient changes as well as the sequence of implementation of these changes to achieve more goal units for the organization. It not only answers the question WHAT and HOW, but as importantly the WHY. This Basics Workshop provides attendees with an introduction to Strategy & Tactic trees, how to create and use these to communicate changes within an organization and also how organizations can use these to address the common engines of disharmony within organizations that waste their scarcest resource – management attention. The workshop includes a real-life example and new developments to significantly simplify the process to create and validate S&Ts.
In this webinar, Dr. Alan Barnard will present a new TOC development, the Change Matrix Cloud (CMC). Combining Dr. Goldratt’s Evaporating Cloud and the Change Matrix to present a simple, yet powerful method for systematically and collaboratively developing breakthrough solutions by exposing and challenging those few assumptions that block us from resolving planning and execution conflicts. Over the past 18 months, this method has shown to be effective for solving conflicts within both private and public sector organizations as well as for individuals. Dr. Barnard will present the method in a simple step-by-step method: 1. GAP Analysis: what's the problem and why is it important to solve? 2. Conflict Analysis: what are the planning and execution conflicts that block us from dealing with the problem - using the Change Matrix Cloud to define both the positives and negatives of making a change or not). 3. Conflict Resolution: Exploring four simple ways (Dr. Barnard's four methods) to identify the most viable way to achieve many more positives and less negatives, while soliciting stakeholders input ('yes, buts...') to improve the solution. 4. Defining the Solution as new Best Practice: Converting the new solution into a Best Practice in a Strategy and Tactic Tree node format that clearly answers the When, What, Why, How, and Why Not.
Barnard, A. and L. Scheinkopf (2012). New applications of (and developments in) theory of constraints strategy and tactics trees. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
This presentation discusses 1. Dr. Goldratt's 2011 challenge to the TOC community. 2. Our current understanding and challenges within S & T trees. 3. New applications of S & T trees (transformation, organization, and content). 4. New developments in S & T design and auditing (by standing on the shoulders of giants (SOGS) process). 5. Key take-always and recommended future R&D. The presentation is built around you facing inconsistencies in the environment and then you challenging the basic assumptions of your understanding of the environment.
Barnard, A. M. and R. Surace (2012). Hyde Park session - TOC strategy & tactics tree vs. Balanced scorecard strategy maps. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
A Hyde Park session. A comparison of balanced scorecard (BSC) and strategy and tactics (S&T) trees is provided. A study showed that the companies that got real value from balanced scorecard were ones that understood the cause-and-effect relationships of measures. Asking the question HOW lets you dive down from the top of the S&T tree to the bottom. If you ask WHAT FOR you are going up the tree from actions to top level strategies. Balanced scorecard four aspects are financial, customers, processes and internal learning. BSC is the classification level of science. BSC and S&T are similar in structure (levels). BSC generic strategy map was presented. A discussion of Southwestern Airlines Balanced Scorecard is given. The BSC is missing the assumptions of the S&T tree. In the S&T we must be at the actionable level; The BSC is at a much higher level (no details). A good measurement must first accurately give the status of the system; (under what circumstances does it not identify the correct status). Second, the criterion must give us the cause of the deviation (supply and demand). Third, is the measure driving the right behavior? What do you want people to do? Now what measurement tells me they are doing that?
Belpaire, E. and J. Schraeder (2013). Strategy & tactics tree of a local non-profit organization promoting TOC. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
ToC France is a non-profit organization aiming to promote the TOC body of knowledge in French-speaking countries. It proposes to discuss the S&T tree used to align its members' energies.
This presentation provides a brief history of critical chain (CC), a discussion of the structure and definitions of the strategy and tactics (S&T) tree and what I can do when I go back to my company to start on theory of constraints project management. The S&T helps you implement critical chain holistically with decisive competitive edges of reliability and doing projects faster. The build, capitalize and sustain stages are discussed. The first actions must provide significant results to get and maintain management attention. We do an explicit learning program on CC so that it is integrated into the organization culture. This is the introduction to three different case studies.
Ferguson, L. A. (2012). Lessons learned writing transformational strategy and tactics trees. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
This presentation provides lessons learned while writing and teaching others to write transformational strategy and tactic (S&T) trees. The giants that this work stands on are TOC and Dr. Eli Goldratt. Dr. Goldratt developed the S&T tree in 1985, but shelved it because at that time he was unable to teach others how to write an S&T tree. In the mid 2000’s, the S&T began being utilized again by Goldratt Group. The goal of this presentation is to share the key lessons Dr. Ferguson learned while working with Dr. Goldratt and later developed during her time working on her own for the past several years. Key learning points include: How the six-step standing on the shoulders of giants (SOSG) process was applied to achieve her ability to write polished S&T trees; and how the SOSG process was applied to teaching others to write S&T trees. How do you find the balance between the big picture (forest) and the details (trees)? How do we adjust this balance to achieve harmony as reality changes? Big picture Level 1 the strategy or objective of the organization core conflict EC. Objective A Become an ever-flourishing organization. B. Grow profits and sales exponentially year after year and C Maintain stability Injection: build a decisive CE....Understanding for the five levels what each level is achieving. L1 the huge pot of gold or statement of current reality of achieving the goal and necessary conditions of the organization. L2 How to meet the needs of the stakeholders of the organization with emphasis on external market... L3 Provides the method for achieving the strategies and tactics but not specific actions on how to do it (functional) L4 Making the switch through the golden assumptions which explain what we can do moving from theory to practice... practical actions. L5 More explanation/clarity is provided if needed. Details: sentences that are written in the tree. Five entities are in each step (necessity assumption, strategy, tactic, parallel assumption, sufficiency assumption). Sentence structure is important as: every word counts. Recall 5 entities in a step with definitions.
Effective strategic planning and execution is critical to the success of any organization. TOC provides an excellent tool set for strategy to enable an organization to satisfy the market now and in the future, satisfy employees now and in the future, and make money now and in the future. This 0 to 60 webinar provides an introduction to the TOC methods, which provide the necessary and sufficient solution elements for achieving the vision/goal of the organization. The Transformational Strategy and Tactic tree is an incredibly powerful tool for synchronizing all the actions needed to transform an organization into a 'well-oiled' machine for satisfying the goal and necessary conditions.
Ferguson, L. A. (Jan. 18th, 2012). Comparing and contrasting writing S&T trees using the plus and minus-minus buy-in processes. TOCICO Webinar Series. TOCICO, Theory of Constraints International Certification Organization.
This webinar will begin with Professor Ferguson presenting the plus and minus-minus buy-in process steps and comparing and contrasting these two methods for overcoming resistance to change. Then, Dr. Ferguson will present some ideas on how to write S&T trees using each process. Finally, the last part of the webinar will be open for discussion regarding thoughts and/or experiences writing S&T trees using each method.
The Transformational Strategy and Tactic tree (TSTT) is the key enabler for an organization to achieve its goal or high level strategy. The TSTT effectively synchronizes all the important actions/tactics needed at all levels of the organization to achieve win-win-win collaboration based on the logic presented in the TSTT implementation plan. In this webinar, Dr. Ferguson will share lessons learned from teaching others how to write TSTT’s for the past four years. After that, the webinar will be open for discussion and questions.
Dr. Ferguson, the author of the chapter on S&T trees in the Theory of Constraints Handbook will provide a brief overview of S&T trees and then open the webinar to questions. Those unable to attend the live webinar are welcome to send questions to be answered in the webinar (assuming there is enough time) via e-mail to firstname.lastname@example.org.
The thinking processes (TP) are a powerful set of methods for improving your critical thinking skills. The tool set consists of generic processes for addressing what to change, what to change to and how to cause the change. This webinar provides an overview of each of the TP tools: the evaporating cloud, current reality tree, future reality tree, negative branch reservations, prerequisite tree, transition tree, strategy and tactic trees, the plus and minus-minus buy-in processes, and the four viewpoints of change.
The strategy and tactics tree (S&T tree) is a powerful tool for synchronization and communication throughout the organization. The S&T tree ensures that all the actions and underlying logic are understood by all, thus ensuring efforts are aligned to achieve the top level strategy of the tree. This presentation focuses on providing the participants with guidance on how to create and customize S&T trees.
We present the generic Strategy and Tactics tree for hospitals for how to implement TOC to improve healthcare quality, provide a more rewarding environment and improve financial performance. Then, we share experiences of implementing TOC in both public and private hospitals.
Fondevila, E. and J. Fiallos (2013). Institutionalization. formality in processes by introducing SOPs as a powerful mechanism to guide the process of building, capitalizing and sustaining the decisive competitive edge during a Viable Vision implementation. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Through this presentation we will describe how, utilizing the strategy and tactics (S&T tree) as guidance, we built a TOC SOP (standard operating procedure) IMPLEMENTATION MANUAL as a robust mechanism that helps every individual of the company to get quickly engaged with the process of building, capitalizing and sustaining the decisive competitive edge. We will go through every aspect detailed in the Manual built with the purpose of focusing management attention by assuring a continuous flow through the implementation process: - Objectives: The sales system’s purpose using the S&T’s logic. - related documents: documents built/used to support the implementation. - detailed drocesses: every step of the process and related documents needed. - policies involved: to introduce TOC principles on the bureaucracy of the company. - Key performance indicators (KPI’s): scorecard of internal and external KPI’s that measures performance of the system. As we recognize management attention as the main constraint of companies, we developed this tool to simplify and standardize the implementation process making it easier to reach harmony by generating stability and growth at the same time. Once this manual is established as the principal guide for the implementation, it becomes a source for continuous improvement and closes the gaps between the focus on short-term versus long-term horizons.
This presentation describes the challenge of implementing a Viable Vision (VV) project; the breakthrough of the strategy and tactics (S&T) tree; using a global approach to implementation; the breakthrough of the throughput operating strategy (TOS), examples of its application and a summary of lessons learned. The challenges of the VV include lack of bottom line results, transforming companies from a functional to a global focus, lack of synchronization and processes and the isolated implementations of local TOC applications. The S&T tree provides the logic of each VV strategy; defines the key capabilities and sequence of actions to achieve results; high-level structure for implementation; and provides the logic to create ownership of the process. The implementation process is: 1. Clear verbalization of the goal/ objectives; 2. Define the system you are working with—Flow; 3. Articulate what good looks like—Convert the S&T to a TOS; 4. Alignment of leadership with the goal and TOS; 5. Analysis of current state vs. TOS—Levers; 6. Define the improvement model—how we will work together; and 7. Execution. TOS is defined and illustrated and compared to the S&T tree.
Goldratt, E. M. (2003). Making TOC the main way: The Goldratt Group strategy and tactic tree and the Viable Vision process. TOCICO International Conference: 1st Annual Worldwide Gathering of TOC Professionals, Cambridge, England, Goldratt Marketing Group.
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Goldratt, E. M. (2005). Keynote: Goldratt Group strategy and tactics tree. TOCICO International Conference: 3rd Annual Worldwide Gathering of TOC Professionals, Barcelona, Spain, Goldratt Marketing Group.
This presentation describes Goldratt Group Strategy and Tactics tree, new ideas on Viable Vision and TOC distribution solution. Eli describes his six-week analysis which resulted in a simple two page S&T tree and the 14th Letter to the POOGI forum. Wendy read the POOGI forum letter and Eli explains the content. TOC defined in one sentence: Any situation is not governed by numerous causes, but by few constraints. Traditionally this means: Fact 1: Organizations are very complex; Fact 2: It is difficult to manage complex environments. If complexity is defined by the number of data elements needed to describe the system the problem: How do we manage such complexity? The traditional view is: We simplify the system by dividing the system into many parts and getting each part to improve. The Scientific View: In any system, there is inherent simplicity due to the fact that there are few factors that govern the system or there are few degrees of freedom. This is what we call the policy constraints or core problems. The TOC addition: In goal-orientated systems, there are very few elements that govern the throughput of the system. This is what we call the physical constraint(s). In TOC, we use both of these facts that provide inherent simplicity in complex systems to simplify these complex systems. The physical constraint = leverage point. The policy constraints / core problems = what limits or blocks us from exploiting the leverage point. So, in TOC, we always follow the five focusing steps as the governing framework but use the thinking processes (TP) to answer each of the 5 Focusing Steps where we get stuck. Therefore, TOC exploits the fact that in every system there is inherent simplicity that could be leveraged to simplify and to manage complex environments.
Goldratt, E. M. (2006). The strategy and tactics tree Day 1 (upgrade workshop). TOCICO International Conference: 4th Annual Worldwide Gathering of TOC Professionals, Miami, Fl, Goldratt Marketing Group.
This presentation is about strategy and tactics (S&T) trees: putting companies on the processes of ongoing improvement, the red curve. The discussion is about the Viable Vision (VV) solution (templates given 2005 in Barcelona) as the overall guiding direction for the company. The VV is not a linear sequence of functional implementations. Our first approach was to look at individual prerequisite trees and compare them to integrate them into a comprehensive document. Injections are missing, choopchik injections, etc. The solution is the S&T tree. Building the S&T tree took six weeks. Zycon (RRR= reliability, rapid response) was the first template. This day is devoted to presenting the first S&T tree in great detail. History: The S&T was constructed in December 1985 before the thinking processes. Motivation was that Creative Output, the agent of change became hard to move. The Race was the presentation of the competitive edge that Goldratt gave to Creative Output. A person will judge what he sees according to his frame (his logic that he used before). If you are giving a different frame you have to give the logic of what and why your frame is right. The framework was constructed then put on the shelf. One problem that the thinking processes cannot solve: how to measure the individual’s contribution in an organization. If we will connect the top of the organization to the individual contribution by perfect logic then we can measure an individual’s contribution. Eli Abramo and Rami Goldratt worked for a year with Eli’s guidance to develop the rules for the S&T tree. Traditionally strategy (the what for?) is thought to be at the top and tactic (the how?) is thought to be at the bottom. The S&T redefines the strategy and tactic and each element of the S&T is defined, discussed and examples given from the RRR S&T tree.
Goldratt, E. M. (2006). The strategy and tactics tree Day 2 (upgrade workshop) cont. TOCICO International Conference: 4th Annual Worldwide Gathering of TOC Professionals, Miami, Fl, Goldratt Marketing Group.
The presentation continues with the strategy and tactics tree (S&T) and discusses how to build leads for sales. When quantities increase by an order of magnitude it is not enough to increase capacity, new processes of support, control and measurement are needed. Went a company brings in 2-3 clients a year lead opportunism is good enough. But a process is needed when sales must grow fast. There is a sufficient and constant flow of qualified leads going into the buffer of the sales funnel. Having a decisive competitive edge offers a way to keep the buffer full. The characteristics of a person that can build a good lead generator are not the same as a good sales person. Sales are a multi-project environment, bad multitasking is prevalent. Measurements can force a person to do the wrong thing. Remove measurements from people that do the wrong thing.
Goldratt asks if the audience wants him to evaluate MLIT’s use of critical chain with contractors. Many in the audience wanted the truth. Eli’s staff wanted politeness. Eli decides to be critical of MLIT’s use of critical chain. Project managers should have seen a 25% reduction in project lead time. If you think that by using critical chain software you are doing critical chain then you are wrong. Do you believe by the government committing to one day response to contractors' questions and taking one week is not critical chain. Some responses should be given immediately and others are not so important. What are the criteria for evaluation of the response? If the project will be delayed because of the response delay then answer immediately; it is important. If the delay has no importance in its relationship to the project completion times, then why the rush? There are three important steps in projects. First, choose the right project. Second, design the project correctly. Third, execute the project correctly. For the first question, the thinking processes (analyze the situation to determine the real need—that is that the project meets that need) are used. For the second question, the design of the project, the tool is the S&T tree, how do you start with an objective and end up with a project network. The whole logic is spelled out. How can you use the gemba experience if others don’t know why you have designed the project in the way you have designed it. For the execution you start with the PERT then end up with reality. Your biggest waste (according to Ohno) is overproduction. In project management the biggest waste is buffering each task. Critical chain says to take this local buffering and protect the whole project. By aggregation of local buffers the variability goes down hence project lead time must go down by 25%. If you don’t report on it then you do not use critical chain.
Goldratt, E. M. (2011). Dr. Eliyahu M. Goldratt, Never say I KNOW - Day 2 The tangibility of the green curve presented by Lisa Scheinkopf. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
This presentation is the second day of Goldratt’s two days of teaching new TOC developments. Lisa Scheinkopf is presenting Goldratt’s materials. She introduces the history of the red curve and green curve. From 1990 till 2000 the red curve represented ongoing improvement (exponential growth) and the green curve represented stagnation. Around 2007 Goldratt redefined the red curve as growth and the green curve as stability. The ever-flourishing company should have both. In May 2011 Goldratt redefined the red curve green curve concept with the assumption that the bigger (the stronger) the base, the higher the jump; the green curve is the base and represents harmony (communication, collaboration, people’s personal and professional growth, etc.) which causes the base to be bigger and stronger for the growth of the red curve to take place. The Standing on the Shoulders of Giants (SOSG) process is used. TOC can provide significant contributions to this area of stability and harmony. The engines of disharmony and harmony are discussed. The cloud of being a good manager and management attention is provided. The solution is to equip everyone in the organization to better evaluate and communicate needed changes. The four views of change are described as the mermaid, the crutches, the pot of goal and the alligator. Turning inertia and the engines of disharmony to the engines of harmony is discussed and an exercise is provided. The organization strategy and tactics (S&T) tree is described as playing a major role in moving to the engines of harmony. The SOSG process is used to attack the people aspect of organizations.
This presentation describes the situation of implementing the project management strategy and tactics tree in a Viable Vision company. It was noted that a gap existed between what was done and the steps in level 5 of the tree. Some elements are missing and others require modification. For a TOC implementation to be successful the first actions must result in immediate substantial benefits therefore the first action should be to freeze projects to reduce bad multitasking. The sequence of changes in critical chain are presented and described. Virtual drum, full kitting, staggering, integration, and buffer management are discussed.
Granot, M. (2008). The science of successful TOC holistic implementation. TOCICO International Conference: 6th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
This presentation describes the use of the Viable Vision (VV) and the strategy and tactics (S&T) tree. The S&T tree provides a method of focusing the organization’s management and efforts. The focus is on the decisive competitive edge of inventory turns. There are different templates that provided different focuses on different competitive edges. Traditionally management spreads attention on everything versus the TOC focus methods. The first step is to get top management to adopt the S&T as the only initiative of the company. One must ensure an outstanding start of the S&T initiative with immediate substantial organization benefits. An example is provided of a large company where within 12 weeks SDBR, distribution replenishment solution, sales solution, CC solutions, etc. were implemented. Lead time shrunk 50%, productivity doubled, 50% excess capacity exposed, shortages eliminated, availability increased (sales increased 20%), project lead time reduced 20%, DDP increased from 20 to 83%, and productivity doubled.
In a 2 min. video it is shown how much bigger the problems still are in the supply chain environment. What is the constraint? How do most companies go about it and what should we do according to the S&T for a supply chain. Highlighted subjects are: aggregation; order lead time and its effects; the conflict between retailer and supplier; the ROI calculation as the opportunity to get the full attention of the retailer; the astonishing potential results; and the effects of the financial crisis. These subjects are all related to how we should read the supply chain strategy and tactics (S&T) tree. Furthermore introductions are made to the other presenters and their results and experiences.
Hurtado, A., et al. (2012). Hyde Park session: Standing on Eli Goldratt's shoulders: Management attention to build the ever-flourishing state. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
This Hyde Park session is based on Hurtado, Andres; Fiallos, Julio; von Campe, Constantin's previous presentation. They present a few slides then conduct questions and answers. The case was reviewed; a Viable Vision (VV) company where the strategy and tactics (S&T) tree was used. In the implementation the focus is on the build-and-capitalize aspects of the tree.
The bar is raised each year to do more and faster. No wonder organizations are steeped in trying to improve. They invest in training, experts, and projects expecting a return – both in size and in speed. However, many are disappointed. We have formed an implementation process that works very effectively called SDAIS. - Strategy, Design, Activate, Improve, and Sustain. We show the importance of why without strategy and design you conflict with other improvement initiatives and why improvement without sustaining results will not be long lasting. Understand why Sumino (a customer and supplier to Mazda) came to the conclusion that kaizen was not going to take them where they needed to go and how SDAIS guided continuous, sustainable bottom-line improvement over many years.
Jha, B. (2007). Tata Steel: An update on Viable Vision: Discovery & learning. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation discusses the calculation of the Tata Steel organization’s profits attributed to the Viable Vision. The financial impact and training requirements are presented. The reduction in TRD (throughput rupee days) is provided for a year’s period in aggregate and separated into three different processes (cold and hot rolled, longs and tubes, and wires). The detailed strategy and tactics (S&T) tree for Tata Steel VV implementation is provided through level 3. The decisive competitive edges (CE) are: 2.1 Distributors CE; 2.2. Reliability CE; 2.3 Rapid CE; and 2.4 VMI CE. The detailed steps with necessary assumption, strategy, parallel assumption, tactic, and sufficiency assumptions are provided. A model for maximizing the throughput from the mines which includes flow, mine life and value is provided. The use of buffer management is illustrated. Major objectives, actions and achievements are provided. The use and results of critical chain in maintenance and sustenance projects are discussed.
Kothekar, K. (2012). Long-term vs. short-term: How does a company on the path of a Viable Vision focus on capitalize and sustain. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
Most organizations are caught in the conflict between long term and short term. Most of the time, it is the short term which wins and long term is left to discussions in off-site sessions. Primary reasons for short-term focus comes from pressures of problems related to cash/working capital; increasing pressure to meet the sales numbers by the end of measurement period; and expediting orders as per customer urgency. All the above problems take away significant management bandwidth and hence long term takes a back seat. Typical long-term initiatives like developing new markets, building competencies, and development of vendors. Some organizations have created new departments to deal with the long term but lack of management focus on these initiatives make implementation very slow. At times, the new departments are disbanded to support the demands of the short term. So the only way out to deal with the long term is to remove the problems of the short term. The problems of short term emanate from the supply chain issues such as disharmony in supply chain. Learn how Fleetguard Filters have achieved complete harmony in its supply chain. Fleetguard Filters achieved its Viable Vision (VV) of increasing sales 4 times and profits from same market/ products in 4 years, while the market was growing at around 12%. Fleetguard is a market leader in India and supplies auto filters to the commercial vehicle segment. With the implementation of the strategy and tactic (S&T) tree, it has achieved availability for auto OEM at 99% (hence no expediting requests from OEM); availability in retail of near 100%, with nearly 24 inventory turns; after-market sales trend within a month has no skew towards end ( no pressure at month end); new product development (NPD) output is now 5 times more than what it was 3 years ago. Engineering has wiped out the queue of waiting projects hence it can react immediately to any new requests, as a result no expediting requests for top management; even with high growth. Very little time is spent in daily issues as no short-term issues exist. The entire supply chain is on autopilot, which is helping the top management focus only on the long term and further fuel the growth of the company. Last year the management focus was on strategic sourcing to ensure that SUSTAIN- capacity at suppliers does not deteriorate Fleetguard's decisive competitive edges of availability and inventory turns. This year it is focusing on developing competencies to capture markets for its next VV. Learn how Fleetguard is creating an organization for long term by having eliminated the 5 engines of disharmony.
Lang, L., moderator, et al. (2012). Panel discussion: Competitive strategy. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
This panel discussion includes strategy presenters: Henry Camp (Investing with TOC), Kiran Kothekar (Building on the consumer goods strategy and tactics tree for fashion goods companies), and Boaz Ronen and Eldad Kollenscher (Paris' Arrow: An enhancement of TOC for dealing with the Achilles Heel of a competitor, a customer or a business associate). Panelists answered questions from the audience related to their presentations. Boaz said his analysis is based on over seventy different companies.
Mohanty, S. and P. Kulraj (2013). Managing outliers in distribution and retail using TOC upgrade workshop. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
One objective of the session is for people to learn about the additional solution components required along with the basic TOC distribution in environments, which present the challenge of large variety of SKUs or a large number of small customers. Another objective is to explore how effective implementations are possible without diluting the essence of the TOC way of thinking or complicating the simple yet powerful solution of replenishment, aggregation and high inventory. The discussion points are related to the standard Consumer Goods Strategy and Tactic Tree and explore the missing entities in the standard tree as well as providing a more detailed explanation of some of the parallel assumptions of the steps in the standard tree.
Moura, E. (2012). Using TOC-TP as a guide to integrate lean, six sigma, process management and TOC solutions for business improvement. TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
The author presents a proven method that uses TOC’s Thinking Processes (TP) from undesirable effects (UDEs) to strategy and tactics (S&T) trees to prioritize and integrate strategic business improvement initiatives such as lean, six sigma, process management and specific TOC solutions. Real implementation examples are presented.
Paez, H. (2013). Standing on Eli's shoulders, Thinking about communications and its impact on the soft side of implementations. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
This presentation’s goal is to present the logic behind a communication process inside the implementation of a strategy and tactics (S &T) tree and as a tool to improve team work, collaboration and motivation. Material covered: TOC 3rd Pillar, thinking process logic and the relevance on the communication issue as a generator to create a culture of ongoing improvement based on the TOC way. The communication process is something that the implementation team is supposed to have already in place or as something not relevant to the implementation process. On the other hand, some clients have the assumption that the process of TOC is flawless so they are not willing to have an open mind when some actions fail, so the project starts to get unstable. The hypothesis is that with the adequate communication process not only those assumptions are challenged but the collaboration improves therefore the team work improves and the results are obtained faster increasing the stability, growth and harmony we offer as a TOC community. Attendees’ benefits are: 1. a recommended model to obtain harmony based on the cultural changed within a TOC implementation. 2. The relation between communication and the S&T tree.
Pescara, F. (2013). The link between the S&T trees and the traditional TP analysis: A rigorous approach. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
How to build a logically consistent strategy and tactics (S&T) tree? How to scrutinize, validate or criticize a S&T built by others in order to improve its logical consistency? What are the links between the entities of an S&T tree and the traditional TP? The rigorous definition of the assumptions contained in the STEPs (and of the sub categories to which they belong) allows us to build logical models that may be subjected to the filter of the 'Categories of Legitimate Reservations', and thanks to that to improve the logical consistency of the S&T subject to the scrutinizing process. The presentation explores the connections between the traditional analysis carried out with the Thinking Processes and the verbalization of the entities of S&T trees.
Pimienta, A. H. (2010). Removing engines of disharmony: A set of learnings to managing the market. TOCICO International Conference: 8th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
Sales oscillations are the biggest obstacle to organizational harmony—How did this company decide to overcome it? The tools included using the day-by-day execution system (Commercial & Logistic), S-DBR along the internal functions and removing engines of disharmony using the strategy and tactics (S&T) tree logic. This presentation describes a case study of an apparel manufacturer: due date performance was bad, fashion oriented (short product life), 3 plants, more than 1400 open orders in the plants, 50-60% of orders are new products. The make to order strategy and tactics tree was used. The journey of actions using TOC is described.
This presentation describes the background of the Viable Vision (VV) implementation at Neuland Labs. The analysis of the various stages of implementation, lessons learned, corrections made, and results achieved are provided. Neuland is an API manufacturer (make the active ingredients that go into many medicines) doing contract research and contract manufacturing with two US FDA/EU/TGA/PMDA approved manufacturing facilities. Neuland has a 40,000 square foot stat-of-the-art R&D facility with 185 scientists in R&D and over 1500 total employees; and export to 85 countries. Over 80% of its business is conducted in US and Europe. Neuland entered into the Viable Vision (VV) in 2006 was initially based on the strategy and tactics (S&T) tree based on the vendor managed inventory (VMI) solution but changed to reliability and rapid response (RRR) S&T tree solution. At the beginning of the implementation capacity became totally booked; this required a massive elevation of capacity requiring significant capital investment. The API environment includes long touch times, regulatory issues, unstable processes, and long approval cycles. Additionally sales and marketing were not aligned with operations. Top management has to give 100% commitment to the VV project. Getting the right measurement system is the key to the VV. Throughput and due date performance (OTIF-on time in full) are made primary measures and the bonuses of employees are linked to these measures. The S&T tree must be tailored to the individual environment. You must recognize that you must understand the old environment as many times what they are doing is right and not based on the old paradigm. Release control, daily buffer management (BM), BM priority system, emphasis on full kit and preparations were essential to implementing the S&T tree. Eli Goldratt discusses the presentation and the one page report that give you the dashboard for projects; this same visibility is not available in distribution and production. When we have a deviation we need input from different functions. We need the organizational S&T.
Raz, R. and P. Sukumaran (2011). TOC for effective merchandise Titan Industries Limited Jewellery Division. TOCICO International Conference: 9th Annual Worldwide Gathering of TOC Professionals, Palisades, NY, Goldratt Marketing Group.
Titan Jewelry is a division of Titan Industries, the largest jewelry retailer in India, and part of the Indian TATA group. Titan Jewelry embarked on a Viable Vision (VV) project, with the goal to sustain their status as an ever flourishing company. The challenge lies in exploiting the main constraint of any retail – the traffic in stores, while increasing inventory turns. This translates to improving the merchandise effectiveness: having the right inventory in the right store at the right time. The more effective the inventory , the less inventory is needed to support the current level of sales. The more effective the inventory the better we can exploit the current traffic. The unique nature of the jewelry industry is discussed which includes sales over time having a long tail. A process for addressing the head, the body and the tail of the distribution is provided. An update of this presentation was given in 2012.
In most organizations, an economic slow-down does not need to result in a reduction in sales revenues. The key to achieving this sales stability is to exploit the enormous unutilized capacity in most sales environments to make (just) incremental gains in market share. The speaker presents a five-step plan for re-engineering the organization — even when the organization is in the midst of a slow-down — and he’ll show how it is possible to maintain throughput without increasing operating expenses.
Ronen, B. (2007). Upgrading the TOC BOK: Focused methodologies for the financial industry. TOCICO International Conference: 5th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NV, Goldratt Marketing Group.
This presentation reviews the problems of traditional strategy from a TOC perspective then offers solutions using the thinking processes and applications. The role of the CEO to provide vision and the Bungee Effect are described. Forbes Magazine author thought: In the majority of company strategy cases strategic planning is good but also in the majority of companies execution is bad (Bungee Effect). Recognize that the author is viewing strategy from a traditional viewpoint as what is taught in business schools, executive programs and by consultants (not TOC strategy).Goldratt's It’s Not Luck example is provided for discussion. The traditional strategy and tactics (S&T) for a successful company are examined using the thinking processes (TP). At the lower levels we see that tactics clash within and across functions thus creating chronic conflicts among policies, measures, and behaviors within the organization. Chronic conflicts for making money, having secure and satisfying environment for employees, and satisfying the market are discussed. An example with results is provided of implementing a Viable Vision (VV) project with a mid-sized Chinese kitchen products producer.
In this session we discuss what derails implementations, how to prevent derailers, how to recognize a potential derailer, and how to correct them. Corrective action includes utilizing strategy and tactics (S&T) trees, thinking processes (TP), and open discussion so that the participants learn from each other as well.
This presentation describes the strategy and tactics (S&T) tree, what it is, why it is important, the questions it answers, why it is an incredibly important tool not just for implementations, but for C-level (and for that matter, all levels) of an organization. This presentation features the five questions. 1. What am I responsible for accomplishing? 2. Why is what I'm responsible for really needed by the organization to improve vis-à-vis its goal? 3. What must I do to accomplish it? 4. Why will this action/activity achieve it? 5. Why is accomplishing this at risk without providing another level of detail for my subordinates?
Scheinkopf, L. (2010). The strategies & tactics for selling a decisive competitive edge. TOCICO International Conference: 8th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
The vast majority of benefits from a TOC implementation come when sales increase. Over the years, there have been many presentations on creating win-win offers using TOC, but no company should rely on the build it and they will come as its approach to increasing sales. This presentation answers questions through examples from several Viable Vision (VV) implementations, supplemented with specific steps from strategy and tactics (S&T) trees.
Schraeder, J., et al. (2013). Management attention solved: TOC and requisite organization. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
TOC consultants often work in dysfunctional organizations. Time is wasted gaining management sponsorship and attention, overcoming resistance to change, getting buy-in, and training people who are not capable of working at the level of complexity required in their role. The primary cause of needless fire-fighting rather than doing the real work of the system lies in organizational structure, staffing, and managerial practices. This session argues the existence of a systemic problem, identifies the nature of that problem, poses a solution based on requisite organization (RO), a mature, science-based theory, and examines a case study which shows how RO and TOC can function at both the plant level and the highest levels of an organization. This session will demonstrate the compatibility of TOC and RO, present central RO concepts, applying them to typical TOC project situations, and propose how using RO concepts can lead to larger and more successful engagements. 1. Those with projects in operations will learn how RO concepts can be applied at the plant level. 2. Those with projects at the corporate level will learn how RO can be used to prepare the organization for strategy and effective implementation and by combining TOC and RO in strategy and tactics (S&T) trees.
Sims, C. and A. Barnard (2013). SAP and TOC - A match made in Heaven? TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
It's been well over 10 years since the book, Necessary but not Sufficient (NBNS) was published and yet the rate of success in IT projects – including, unfortunately SAP implementations, has not dramatically improved. SAP’s own benchmarking and research from other leading ICT research organizations shows that still around 70% of all ICT projects are not deemed a 'great' success. This is despite the fact that the power and coverage of the technology and implementation know-how has grown dramatically. Could Theory of Constraints help to unlock the inherent value potential of SAP? This paper aims to answer this question, starting with the complexities, trade-offs and uncertainties that make implementing an ERP system such as SAP so challenging. It then provides an overview of how a new NBNS/TOC based 'ValueERP' process, originally developed by Dr. Alan Barnard at Goldratt Research Labs, was proven effective to unlock more value faster from SAP implementations at for example African Explosives, ABB, Ditch Witch, Daiwa House and BHP Billiton. In 2012, on the initiative of Chris Sims who heads up the SAP Business Transformation Services (BTS) unit for MENA region, SAP MENA formed a research partnership with Goldratt Research Labs to further research and improve this ValueERP process to go beyond just using TOC to implement SAP and/or SAP to implement TOC with SAP MENA clients – one of the fastest growing SAP markets in the world. Chris and Alan will share their experiences and new insights from this research partnership, specifically how they are using NBNS and Strategy & Tactic (S&T) trees to identify and address the 5 main causes of value being lost within any IT implementation – not just SAP. They will also share lessons learned in trying to implement TOC in the SAP services business in the MENA market unit (Middle East and North African) and provide a peak at their future joint research focus on understanding and unlocking the 'real power of a technology such as SAP'.
Sirias, D. (2013). A process to build strategy and tactic trees using a SWOT analysis. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
The purpose of this presentation is to propose a process to build a strategy and tactics (S&T) tree using a SWOT (strengths, weaknesses, opportunities and threats) analysis as a starting point. The output of the SWOT analysis is used to determine the different assumptions that are part of the generic structure of the S&T tree at its different levels. In addition, each level of the S&T tree is designated a different title to create a language that facilitates communication. Finally, the output of the S&T analysis is summarized in a strategy map which is a tool to communicate graphically the relevant part of the organizational strategy. A case study of the process being applied in a development bank in Nicaragua will be presented to illustrate the process.
Thompson, J. (2013). Developing depth on the management bench. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
Ambition in business requires an injection of healthy new thinking, a challenge to common practice. • Growth is based on creating significant differentiators in the market place. • Differentiation means addressing a market need in a way that no significant competitor can. • Operations must achieve new levels of performance to support the emerging market offers. • By definition – this requires management challenging their existing business beliefs and practices. Embarking on a growth strategy will stretch the current management to the limit. With increasing implementation success, management quickly becomes the organization’s ‘strategic constraint’. The organization will simply run out of management capacity. This question will constantly repeat itself: 'If you a want to grow, who is on your Team?' An interesting dilemma emerges due to the new demands placed on the company: A: Sustainable profitable growth B: Quantum levels of improvement. D: Focusing on major constraining activities/ resources only. C: Ensure corporate stability D': Focus on incremental improvement. Management is the ultimate constraint of a business. The management resource must be developed throughout the organization. The direction of the solution lies in achieving quantum improvement with the experienced management. However, equal and parallel effort must be taken to develop the next generation, small incremental improvement is the opportunity to nurture, incubate and provide opportunity for the next generation to develop technical and teaming skills plus the confidence that improvement is always possible and managing change is the path to success. Companies that exhibit sustainable growth, also have a passion to develop and grow managers as a core strategy… constantly placing challenges and demands on managers. This becomes a type of natural selection, a process by which managers push each other to achieve higher levels of skill. Much the same as Olympians push each other to the highest level of performance. Examples include: General Electric Company, Sony Corporation etc. known as a place of people development as much as delivery of goods and service. These giants have pools of emerging talent that can be unleashed on new opportunities. Developing this type of organization requires a mindset change: primarily thinking of the organization as 'Leadership Factory' producing leaders and managers, an environment where goods and service are second. Develop people and results will follow: the objective is to populate the company with competence. Leaning objectives: 1. Management is the ‘strategic constraint ‘of any ambitious company. 2. Growth is not sustainable if experienced management cannot rely on a pool of emerging talent within the organization. 3. Incremental improvement is an opportunity to identify, incubate and develop the next generation on management. Likely questions: 1. Do we have to develop everybody in the organization? 2. What about the personalities that clash when pushed to excel – will create a negative competitive atmosphere? 3. How do you motivate those how just don’t want to learn, be challenges or even speak up in a meeting?
John will present an introduction to constructing Strategy and Tactic Trees (S&T). Starting with the basics, he will describe a simplified approach demonstrating where to start, how to frame the subject and then generate the S&T.
Updegrove, D. (2013). Unlocking the secrets of critical chain success and sustainability. TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
It is empirically clear that many critical chain (and other TOC) implementations fail either from the beginning or after a period of time as short as one or two years. This includes some implementations that were initially extremely effective, published successes. The purpose of this workshop is to provide insights into how to avoid this outcome and greatly enhance the chances of not only success, but long-term sustainability with ever-increasing results. Areas of focus include crucial preparatory steps that are not well documented in the existing literature, the hidden power of the projects company S&T tree (even for functional implementations), and the way to spread true cultural change through the implementing organization. Finally, three simple questions are proposed for each implementation step that create a world of difference for the prospects of phenomenal success and sustainability of the critical chain implementation. For those who might now specialize in critical chain, much of the material is also applicable to all TOC implementations and strategy and tactics (S&T) trees.
Azul-K SA (Colombia) has implemented a Strategy for Enduring Process Improvement which doesn't permit inertia to reenter the system. The strategy of the Colombian soap producer Azul-K SA used during the last 15 years, focused in satisfying the needs of all its external and internal customers through synchronizing the management of all its proper operations including logistics, financial, sales, merchandising, etc., ensuring that all employees know and fulfill all the POS (Procedural Standards) required for the correct operation of the system.
This presentation discussed a 10-step process for successfully implementing a Viable Vision (VV) for healthcare. The steps are: 1. Delimit the boundaries of the system within our span of control but within the context of the larger system. 2. Agree upon the goal of the system. 3. Agree upon performance measurements for the system. 4. Develop a VV for the organization using the RRR (reliability and rapid response) transformational strategy and tactic (S&T) tree. 5. Get an insight into your system and its current performance by using the systems dynamics model. 6. Identify gaps between the VV and current performance. Write these down as un-desirable effects (UDEs). 7. Identify core conflicts and injections to the core conflicts that are causing the gaps or UDEs. Use injections to change UDEs to DEs (desirable effects) and develop the future reality tree (FRT). 8. Validate injections on the system dynamics model to see the effect. 9. Develop the prerequisite tree and the transition tree to implement the super injections on our road to the VV. 10. Continuously improve system performance and measure with the system dynamics model. This process was discussed in some detail based on its application to Adirondack Oral and Maxillofacial Surgery clinic.