We’re excited to provide FREE access to 7 of more than 60 (and growing) Theory of Constraints (TOC) service industry presentations (excluding several service presentations listed under healthcare and government) ranging from discussions of the use of TOC in service industries to applications in a professional services including IT, to the implementation in a supply chain for book publishing and distribution, the implementation of TOC in a home mortgage company during a severe recession, the implementation in a financial services company, and finally the integration of SAP and TOC in the implementation of IT projects in large organizations.
These applications were selected to build your TOC service industry knowledge base from simple to complex. The same concepts are applied to simple and complex organizations (see also the TOC in Healthcare and TOC in Government portals).
We have listed below the references and abstracts for the free presentations on this portal. In addition, we have provided a comprehensive annotated bibliography of ALL service industry presentations and webinar videos currently in our archives. And, at the end of this annotated bibliography is a TOC book list on service industry.
The service sector is growing rapidly in most countries. The organizations described in these presentations have made significant improvement by using the TOC philosophy to continuously improve. TOC is the best methodology for today BUT there will always be a need for continuous improvement. These tools are part of the journey to excellent service industry organizations.
Our hope is that you’ll learn from these 7 presentations and are moved to join TOCICO to gain access to the rest of our amazing content.
TOCICO membership includes:
- FREE online access to 700+ past TOCICO conference videos including the 25+ additional government videos
- FREE online viewing of The Goal How to Version Movie
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Regional Membership pricing for select countries
- Special Member discounts on TOCICO products and conference attendance.
- FREE access to the over 150+ recorded webinars by TOC experts and industry leaders
- FREE registration to upcoming LIVE webinars – just click to see what’s in the works!
- FREE PDF of the TOCICO Dictionary – 135 pages of pure content
- All 6 Strategy & Tactics trees by Eliyahu M. Goldratt
- Over 20 Theory of Constraints articles with more on the way!
- And, access to networking with the TOC community around the world on the TOCICO website. Build your page, start discussions, or contact another member.
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Ricketts, Dr. John. (2020). Hitching IT to the TOC Wagon. TOCICO 2020 Webinar Series, Theory of Constraints International Certification Organization.
All business and government entities today are affected by, if not dependent on, information technology (IT). Some enterprises have a digital constraint because their IT limits the products and services they deliver. However, even when IT is just a support function, it may range from an occasional to a persistent bottleneck. This webinar discusses factors that lead to misalignment between technical strategy and business strategy. It then covers steps that managers can take to bring business and technology into alignment. For further learning, checkout John's latest book, Exceeding The Goal, which has been referred to as "the bible for applying TOC to professional services."
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Knight, A. (2013). The Development of TOC Applications for the Service Sector.
TOCICO International Conference: 11th Annual Worldwide Gathering of TOC Professionals, Bad Nauheim, Germany, Theory of Constraints International Certification Organization.
This presentation highlights some of the core developments over the last thirty years and in particular focuses on areas where modification of the standard applications was not sufficient and a different approach was required (one that remains firmly rooted in the underpinning theory). In each instance Alex Knight demonstrates that the breakthrough has come purely from the derivation of the underlying theory and has never required the addition or integration with other theories.
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Ricketts, J. (2010). Reaching the goal. TOCICO International Conference: 8th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
Services account for over two-thirds of economic activity today. Reaching the Goal adapts
TOC applications for use in professional, scientific, and technical services (PSTS). This presentation explains why services have unique requirements and how drum-buffer-rope, replenishment, critical chain, and throughput accounting
have been adapted to work in services enterprises providing highly customized services.
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Ronen, B. and Pass, S. (2008). Upgrading the TOC BOK: Focused methodologies for the telco industry.
TOCICO International Conference: 6th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
This presentation describes the use of theory of constraints in the telecommunications (telco) industry. First, the telco industry is described as a service industry with no finished goods, measures are customer service driven, information technology (IT) based and capital intensive, high operating expenses and investments, etc. Value-focused management was developed to apply TOC to this industry. The five step process is: 1. Determine the goal; 2. Define measures of performance; 3. Identify the significant value drivers; 4. Decide how to exploit and improve the value drivers; and 5. Execute and control. The focus is not to make more throughput but to make more value. The broader goal is to increase the shareholders’ value, defined as discounted cash flow (DCF). An example is given. A value driver is any performance variable that can significantly increase shareholders’ value. Managerial value drivers for the telco industry are measures of performance, IT strategic gating, 25/25 rule; IT throughput; sales throughput; complexity reduction; cost accounting, pricing and decision making; and customer service/call centers. Examples of each driver are given. A permanent bottleneck is defined as a bottleneck that cannot be moved. It has 300-400% more demand than capacity.
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Barnard, A. (2010). Case study: Finding and testing a solution to shortages and surpluses within book publishing.
TOCICO International Conference: 8th Annual Worldwide Gathering of TOC Professionals, Las Vegas, NE, Goldratt Marketing Group.
This presentation shares the correct process to develop a simple yet powerful way to identify and quantify the extent, consequences and causes of surpluses and shortages within the book publishing supply chain and how TOC was used to develop and test a viable solution that is generic enough to be applied to any other consumer goods supply chain.
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Cox, K. (2012). TOC in government - Challenges and opportunities.
TOCICO International Conference: 10th Annual Worldwide Gathering of TOC Professionals, Chicago, Il, Theory of Constraints International Certification Organization.
How do you successfully apply TOC principles and tools in a public sector environment? A government organization has many internal and external realities that set it apart from its private sector counterparts. While many TOC principles are effective in government, the overall body of knowledge does not adequately address many conceptual differences. The TOC community has an opportunity like never before to influence the public sector—as decreasing budgets have put government on notice that it must find ways to provide services at lower costs. By applying TOC principles, Kristen Cox has substantially improved the performance of a large government agency. Her presentation focuses on adaptations of basic TOC tools such as strategy and tactics (S&T) trees, as well as lessons learned to highlight applications in the public sector. The goal of this presentation is to encourage the TOC community to broaden the field of knowledge into government operations. Key learning points include: 1. An understanding of the current opportunity to influence government efforts to increased performance; 2. Insight into the challenges of applying TOC principles in a government setting; 3. Through lessons learned, adaptations of TOC tools that have created significant bottom-line results.
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de Laat, L. (2009). Using TOC to deliver IT projects on time, all the time.
First European TOCICO Regional Conference, Amsterdam, The Netherlands, Goldratt Marketing Group.
Caesar is a medium-sized information technology (IT) company based in The Netherlands. From 1995 when Caesar was founded until 2001 Caesar grew steadily. Following an operational excellence strategy Caesar was able to deliver high quality IT specialists for very competitive prices. This strategy however proved to be recession-prone. The recession of 2001 – 2002 hit the company hard. Looking for a way to build a stronger competitive edge Caesar embarked on a journey with Eli Goldratt in 2004. The ambitious target was to build an IT company that would deliver all its projects on time (with the right scope and for a fixed fee). At that moment (and many years before and after it) project performance of IT companies was poor: typically 60-70% of IT projects fail to deliver the right scope on time and within budget. In 2004 Caesar did not outperform the market average. In the first six months of 2005 we implemented a new way of working. The core improvement implemented in this period was critical chain project management (CCPM). Although this proved a necessary component it was not sufficient to reach the goal. A major cause for project failure – at least in IT projects – is uncontrolled scope creep. Applying critical chain allows for some scope creep to be absorbed but we found that an extra injection was necessary: a scope management process that would minimize scope changes to only the most crucial. We developed PDSM – problem driven scope management – using the TOC thinking processes (TP) at the initiation phase of each project to define the basis for the project scope. With a clear problem definition we found that we could effectively manage the project scope during the execution of the project. So much so that we can guarantee customers that we will solve their problem on time and for a fixed fee. The guarantee includes a penalty for late delivery. This unique approach was named Time Value. In the first months of operation this combination of CC and PDSM gave us very promising results: our DDP in 2005 was 80%. As we took on more projects and more complex projects we found a number of other process improvements (mainly from the lean / agile methodologies) were necessary to maintain a high DDP. Using the TP in our own organization to understand the problems and develop and implement solutions, we have been able to constantly improve our performance. In the last three years this has resulted in 95%+ due date performance on our IT projects.
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Our hope is that you will learn from these 7 presentations and are moved to join TOCICO to gain access to the rest of our amazing content.
TOCICO membership includes:
- FREE online access to 700+ past TOCICO conference videos including the 25+ additional government videos
- FREE online viewing of The Goal How to Version Movie
-
Regional Membership pricing for select countries
- Special Member discounts on TOCICO products and conference attendance.
- FREE access to the over 150+ recorded webinars by TOC experts and industry leaders
- FREE registration to upcoming LIVE webinars – just click to see what’s in the works!
- FREE PDF of the TOCICO Dictionary – 135 pages of pure content
- All 6 Strategy & Tactics trees by Eliyahu M. Goldratt
- Over 20 Theory of Constraints articles with more on the way!
- And, access to networking with the TOC community around the world on the TOCICO website. Build your page, start discussions, or contact another member.
You may also want to check out our other Portals:
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