com
27th InternationalConferenceofthe
TOCPractitionersAlliance TOCPA
www.tocpractice.com
August1618,2016Johannesburg,SouthAfrica
www.tocpractice.com
Konrad Bartel
Konrad Bartel studied Industrial
Engineering & MBA, has 20 years
experience as Production Manager /
Director
in
the
manufacturing
environment and 16 years TOC
Consulting experience in Marketing &
Sales, Supply Chain, Manufacturing
and CCPM Implementation. He
worked with Goldratt Consulting on
Viable Vision Projects. Konrad is also
an Ontological Business Coach and
implements TOC at organizations
throughout
South
Africa
and
internationally
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Introduction
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ArrievanNiekerk TOCPAConference2014
27th InternationalConferenceoftheTOCPractitionersAlliance TOCPA
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Theory 1 Yes, the larger the change, the larger the resistance
or Theory 2 Yes, we resist all changes that will not benefit us
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STEP 1
WHY CHANGE?
Performance
Metric 2
Performance
Metric 1
Performance
Metric 3
STEP 4
HOW TO CAUSE THE
CHANGE?
DEFINEGOAL/
SUBJECT
UDE5(2%)
UDE4(3%)
UDE3(10%)
UDE2(15%)
UDE1(20%)
Target
Level
Current
Level
UDE
Conflict3
Need
UDE
Conflict1
STEP 3
TO WHAT TO CHANGE?
Tactic
SufficiencyAssumption
Copyright2015
Action
UDE3
S&T5.X:
UDE4
Action
UDE1
Need
Action
Need
Action
Need
Goal
Action
Action
Need
Action
UDE2
Stop
UDE
Conflict2
Need
Goal
CoreConflict
DE5
DE3
DE4
DE2
STOP
ParallelAssumptions
S&T5.X:
Need
FutureRealityTree
S&T3.3:
Sustain
Strategy
S&T5.X:
Action
UDE5
NecessaryAssumption
S&T4.X:
Managingand
MotivatingPeople
Need
Goal
S&T2.1:
DCE:Reliability/Availability
CompetitiveEdge
S&T3.2:
Capatilize
CurrentRealityTree
Goal
S&T1:
EverFlourishingCompany
S&T3.1:
Build
STEP 2
WHAT TO CHANGE?
GAP?
HOW TO CREATE
POOGI?
DE1
NewWin/win
Need
START
Goal
Need
LEGEND
Yes, but
PUDE
START
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Understanding the
Core Problem
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Understanding the
Core Problem
Action
A
Objective
C
D
Need
Action
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Understanding the
Core Problem
UDE
UDE
UDE
C
A
UDE
D
C
A
CoreConflict
D
C
A
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Understanding the
Core Problem
AnExample:
Growth
Increase &
Protect
Sales
Profitably
Grow the
Company
Improve or at
least protect
Profits
Stability
14
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Understanding the
Core Problem
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Understanding the
Core Problem
Sequence:
Step1:WriteyourUDE
Step5:TransferA,B,C,D,
DtotheA5sizedCard
A
Objective
Step2:Polish&rewrite
yourUDE
B
Need
Step3:Developyour
ConflictCloud
C
Need
D
Action
Step4:Polish,Checksides
&rewriteyourConflict
Cloud
D
Action
27th InternationalConferenceoftheTOCPractitionersAlliance TOCPA
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Understanding the
Core Problem
Whatisthebiggestproblemorundesirablesituation
thatyouhavewithManagingPeople?
Step 2: The UDE has a clear syntax with clear guidelines:
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Understanding the
Core Problem
Whatisthe
COMMON
OBJECTIVE
achievedbyhaving
BandC
WhatNEEDofthe
systemis
endangeredbythe
identifiedUDE?
WhatACTIONis
takentomeetthe
NeedB?
WhatNEEDofthe
systemwillbe
jeopardizedbythe
ActioninD
WhatActionis
takentomeet
NeedC and
jeopardizeNeedB?
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Understanding the
Core Problem
Step4:Polish
Inorderto
Imust
B
Inorderto
Imust
D
Need
Action
A
Objective
C
Imust
Inorderto
Andcheckthat:
DandDareinconflict
DjeopardizesachievingtheneedinC
DjeopardizestheneedinB
D
Need
Action
Imust
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Understanding the
Core Problem
D
Need
Action
A
Objective
C
D
Need
Action
Local/EfficiencySide
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Understanding the
Core Problem
Step5:TransferA,B,C,D,DtotheA5sizedCard
A
Objective
B
Need
C
Need
D
Action
D
Action
27th InternationalConferenceoftheTOCPractitionersAlliance TOCPA
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Business,Dept.
andIndividual
GoalAlignment
Growing
Capabilities&
Relationships
Empower,Motivate
andUpskillpeople
Systemic&
Procedural
Control
Ensureprocedural
complianceandplay
theblamegame
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Business,Dept.
andIndividual
GoalAlignment
Growing
Capabilities&
Relationships
Empower,Motivate
andUpskillpeople
Systemic&
Procedural
Control
Ensureprocedural
complianceandplay
theblamegame
Empoweringandup
skillingstaffisinconflict
withcontrolforprocedural
compliancebecause:
we(I)lackknowledgeon
howour(my)behavior
impactsonthe
Company,Dept.andmy
individualgoal
thereismisalignment
betweenCompany,
Dept.andIndividual
goals
Becausevariabilityintroducedbypeoplemustbesubstantiallylimited.Thecombinationof
environmentalandindividualdifferencessignificantlyincreasetheunpredictabilityand
magnitudeofvariability.Leadershiphasthebiggestenvironmentalimpact.
27th InternationalConferenceoftheTOCPractitionersAlliance TOCPA
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UDE
UDE
UDE
Fullunderstandingby
resourcesofthebenefitsor
consequencesofchangeare
notknown(PotofGold,
Mermaid,Crutch,Crocodile)
UDE
Trainingnot
focusedon
Constraint
TrainingQuality
(content&
application)
Empower,
Motivateand
Upskillpeople
Ensureprocedural
complianceand
playtheblame
game
Growing
Capabilities&
Relationships
Systemic&
Procedural
Control
Peoplearenot
clearonwhatto
focuson
Business,Dept.
andIndividual
GoalAlignment
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Empoweringandup
skillingstaffisinconflict
withcontrolforprocedural
compliancebecause:
we(I)lackknowledgeon
howour(my)behavior
impactsonthe
Company,Dept.andmy
individualgoal
thereismisalignment
betweenCompany,
Dept.andIndividual
goals
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Business,Dept.
andIndividual
GoalAlignment
Growing
Capabilities&
Relationships
Systemic&
Procedural
Control
Provide peoplewith
theknowledgeto
contribute(Goals,
capabilties,
measurementsand
feedback)
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The Solution:
Manage & Inspire Injections
Recognize
Performance
Communicate
Goals
Eliminatethe
BlameCulture
Management
Change
Developa
ProblemSolving
Culture
Personto
PositionMatch
Remuneration
Alignedto
Performance
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The Solution:
Strategy And Tactics Entities
1
ProjectsCompanyS&T
Ever
Flourishing
BaseGrowth
EnhancedGrowth
2:1
2:1
Reliability
2:2
Early2:2
Delivery
Comp. edge
Build
Capitalize
Comp. edge
Sustain
Capitalize
Build
3:1
3:2
3:3
3:4
3:5
3:6
3:7
High
3:1
DDP
Reliability
3:2
Selling
Expand
3:3
Client
base
Load
3:4
Control
Capacity
3:5
elevation
Shifting to
3:6
Bonus
Deals
Rapid
3:7
Project
completion
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The Solution:
Strategy And Tactics Entities
1
ReliableRapidResponseS&T
Ever
Flourishing
Build
BaseGrowth
EnhancedGrowth
2:1
2:2
Reliability
Comp. edge
Rapid
Comp. edge
Capitalize
Sustain
Build
Sustain
Capitalize
3:1
3:2
3:3
3:4
3:5
3:6
3:7
3:8
3:9
99%
DDP
Reliability
Selling
Expand
Client
Base
Load
Control
Capacity
Elevation
LT
1/4
RR Load
Control
RR
Selling
Expand
RR client
base
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The Solution:
Strategy And Tactics Entities
Build
3:1
99% Due Date
Performance
4:11
4:12
Management
Attention
Inspiring &
Managing
People
5:12:1
5:12:2
5:12:3
Managing
People Rollout
Management
Change
Eliminating
Blame
5:12:4
5:12:5
Goal
Performance,
Communication Recognition &
Corrective
Action
5:12:6
Problem
Solving
Culture
5:12:7
5:12:8
Person to
Remuneration
Position Match
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Necessary
Assumptions
(NA)
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Entity 5.1.2
Management Change
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Entity 5.1.2
Management Change
Parallel Assumptions:
Leadership is required to change the Team/Department
approach from cutting cost & waste to understanding
subordination
Set new Goals relevant to the department
Create a safe space for change to take place
Must be able to Un-learn and Re-learn takes a lot to
swop the cost world paradigm for the Throughput world
paradigm.
Continual change must become part of life
Actively eliminate blame culture
27th InternationalConferenceoftheTOCPractitionersAlliance TOCPA
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Entity 5.1.2
Management Change
Tactic:
Set the Local Goal(s),
Agree there is an Improvement gap, at the personal
level, as well as team/department level,
Choose to make the change,
Agree I can solve all problems Use Clouds & TP,
Show commitment, alignment with the new way,
Enable performance, leading from the front,
Live the No-blame & 6 layers of buy-in way.
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Entity 5.1.3
Eliminate Blame
"Letmespeculatethatyou,likeanyotherperson,havebeen
involvedinrelationshipsthatwerefarfromharmonious.Canyou
tellmewhatyouthinkwerethereasonsforthedisharmony?
IrushafewsuchrelationshipsthroughmymindbeforeIanswer."It
isbecausethepeopleIhadtherelationshipswithweretoo
egotistical.Theywerelookingmainlyaftertheirowninterestsand
didn'tcaremuchhowtheirdemandsaffectedme.
Sincehedoesn'taskfurtherIsay,"Nowcanyoutellmewhatthe
thirdobstacleis?"Hepauses.
"Thethirdobstacleisthatwetendtoblametheotherparty."
Smilingheadds,"Exactlylikeyoujustdid.
Chapter7 TheChoice;EliGoldratt &Efrat GoldrattAshlag
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Entity 5.1.3
Eliminate Blame
Icannotstopmyselffromcommenting,"It'snotthatI'mblaming.
I'mjuststatingthefacts."AndthenIask,"Inwhatwayisblaming
anobstacle?"
"Blaminganotherpersonisnotasolution..."
Iinterject,"Butitdoespointinthedirectionofthesolution."
"Thatisexactlytheproblem,"hesays."Intoomanycasesblaming
pointsusinthewrongdirection,inadirectionwherewewillnot
findagoodsolution.Evenifthepersonwillberemoved,inmost
casestheproblemwillstay."
Icheckseveralsuchscenariosinmymindtoverifyifheisright.He
mightbe.
"Moreover,"hecontinues,"blamingotherspoursfuelontothefire.
Itisarecipetoruintheharmonyintherelationship."
Chapter7 TheChoice;EliGoldratt &Efrat GoldrattAshlag
27th InternationalConferenceoftheTOCPractitionersAlliance TOCPA
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Entity 5.1.3
Eliminate Blame
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Entity 5.1.3
Eliminate Blame
Tactic:
FindtheWin:Winsolution:
CapacitatepeoplewiththeTOCTPtoolsto:
1. Effectivelydealwithdaytodayandchronicconflicts,
2. Effectivelydealwithhalfbakedsolutions
3. Alignmentofresponsibilitywithauthority.
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InnerDilemmaConflictCloud
4
Need
5
Objective
1
Action
DotodayConflictCloud&
OrganizationalInterestConflictcloud
3
1
Need
Action
5
Objective
2
Need
Objective
2
Action
4
Need
Action
3
Need
5
Objective
Action
FireFightingCloud
Need
2
Need
Action
UDEConflictCloud
1
Action
2
Need
Action
EachtypeofcloudissolvedbyansweringtherelevantquestiontosurfacetheAction,
NeedorGoalinthesequenceasindicatedbythenumberinthecircle
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Entity 5.1.4
Goal Communication
Necessary
Assumptions
(NA)
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Entity 5.1.4
Goal Communication
AnEverFlourishing
Company
Goal
Manufacturing ProjectsReliability
ReliabilityDecisive
Decisive
CompetitiveEdge CompetitiveEdge
Critical
Success
Factors
Necessary
Conditions
CompanyCulture
andMOO
alignment
Manufacturing
capacityand
capabilities
Harmony is gained by
aligned company, team and
individual ambitious goals
PeopleInspiredtochangeand
managementeffortisbya
feather
Management
Change
Effective
Marketingand
Sales
GOALTREE TOCTP
Capabilitytodeal
withincreasing
demand
ReliableProject
capabilities
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Entity 5.1.4
Goal Communication
AfewNotesonGoals&SettingGoals:
GoalsareopportunitesforPositiveRegognition,
Goalsmustbesetsothattheycanbeachievedbutstill
movingtheneedle
Nothingismoreunequalthantheequaltreatmentof
unequals.(AttributedtoVinceLombardi)
ExploitationandSubordinationmustbeclearlyundestood
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Entity 5.1.5
Performance Recognition
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Entity 5.1.5
Performance Recognition
Consequencesthatincreasebehavior
BehaviorDriver:
Schedule,
Tasklist
Instruction
Getsomethingyouwant
Positive
Reinforcement
Avoidsomethingyoudontwant
Negative
Reinforcement
Getsomethingyoudontwant
Punishment
Losesomethingyouhave
Penalty
Behavior
Consequencesthatdecreasebehavior
WorkOnce
PositiveReinforcementchangebehavior
MostPowerful Positive,Immediate&Certain
27th InternationalConferenceoftheTOCPractitionersAlliance TOCPA
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TConverted
SalesProcess
TPurchased
Procurement
Order Book
TPicked
Raw
Materials
Operations
Distribution
Net
Throughput
Generated
Debtors &
creditors
TReleased
Procurement
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LittlesLaw
WorkInProcess=LeadTimeXAverageFlowRate
Bottleneck,CCR,SystemFlow
NonCCRFlow/ProtectiveCapacity
Example Manufacturingcompany
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LittlesLaw
Example Projectscompany
WorkInProcess=LeadTimeXAverageFlowRate
SalesCCRFlowConversion
SalesWIP(FuturePlanned)
ExecutionWIP(Historical)
ProjectExecutionCCRFlow
KOM
ARC DsgnUpd2894
EoHDeve2808
WMS TactCat2345
ARC EoHExpD2834
EMC FSmnfOM2632
100%
% P r o je c t B u f fe r I n c u r s io n
90%
StyC2897
80%
BRU-RelMech2867
70% eCon2902EME-GenAdpt2883
60%
RDM-20Slide2907
PAT-FneAstr2886
50%
40%
30%
20%
TMT-iCam90L2884
10%
EME-InsPads2908
0%
0%
Copyright2016
10%
20%
EMC-fSv1Mnf2895
30%
40%
WMS-TowReel2572
50%
% Critical Chain Complete
60%
70%
80%
90%
1...
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SalesProcess
Order Book
Procurement
Production
Debtors &
creditors
Market
ProcuretoOrder
FlowRate
LeadTime
WIP
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Entity 5.1.5
Problem Solving Culture
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Protective Capacity
Measurement
CellName
PCrevealed
Res pons i bl e
Date
84
Rate
parts/day
100
90
80
70
60
50
40
30
20
10
24 6:00
23 5:00
22 4:00
21 3:00
20 2:00
19 1:00
18 0:00
17 23:00
16 22:00
15 21:00
14 20:00
13 19:00
12 18:00
11 17:00
10 16:00
9 15:00
8 14:00
7 13:00
6 12:00
5 11:00
4 10:00
3 9:00
2 8:00
1 7:00
0 6:00
Cumpartsmoved
Cum moved+Cum PC
Notes
Durationofno
Reason(s)fornotachievingflowrate
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SalesProcess
Order Book
Procurement
Production
Debtors &
creditors
Market
IncreasingProtectiveCapacity
ProcuretoOrder
Ideallyacompanyssystemconstraintshouldbeinthemarket
Thefurtherawaythefunction/resourcefromthemarketthemoreprotectivecapacityis
required referBalancedFlowvs BalancedCapacityConcepts
InthisexampleSalesmustaddsignificantmorerevealedprotectivecapacitythan
anyotherfunction
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Primary=Bufferperformance
Secondary=CCR
ParetoAnalysis
Reason3Potential
Reason2Potential
Reason1Potential
AssociatedwitheveryControlPointMeasurement
andwitheveryNONCCRProtectiveCapacityisa
reasonforred,blackorratenotachieved
recordingmechanism
ThismechanismisusedtodoaParetoanalysisof
reasonforred,blackorratenotachieved
TheRequiredimprovementGOALisdefined
ACauseandEffectrootcauseanalysisisdonefor
eachReasonsexistenceandthepotentialcapacity
oftheimprovementisdetermined
Sufficientactionsareplannedforimprovementto
ensuretherequiredprotectivecapacity
DeveloptheProjectCharterforeachimprovement
project
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Entity 5.1.7
Person to Position
Necessary
Assumptions
(NA)
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Entity 5.1.7
Person to Position
Tactic:
ToalignpeopletopositionsFormalHRpoliciesneedtobedefinedand/or
implementedbymeansof:
Indepthdefiningofjobprofiles(togettherightguidelineinordertoget
therightpersononthebus);
Recruitment&selectionprocessthatisalignedwithjobprofiles;(getting
therightpersononthebus)
Inaligningpersonstopositions,gapsareidentifiedwhichwillbe
addressedbymeansoftraining&development.
Clearcareerpathsforindividualscanbedevelopedwhichisalignedto
companyandindividualgoals
Establishaparadigmandprocessestoenableupwardmobility
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Entity 5.1.8
Remuneration
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Entity 5.1.8
Remuneration
Tactic:
ImplementaJobprofilealignedremunerationsystem.
ImplementaRemunerationsystemthatisalignedwiththegrowthinprofit
ofthecompany.EitherGainShareorSpecificperformancelinkedtothe
PerformanceRecognitionSystem
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Entity 5.1.1
Implementation
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Entity 5.1.1
Implementation
ParallelAssumption:
ManagementChange,EliminatingBlameandGoalCommunicationare
crossfunctional,highermanagementinterventionsthat,ifdonequickly,
willalignthemanagementteam,setthestageforagrowthculture,and
supportachievingtippingpoint.AstheImplementationrolloutprogress
andtheflowfocusedMOObecomethenormmanagementwillbemet
withnewrequirementsinmanagingtheirpeople continualmanagement
improvementmustbecomethenorm.
AstheTOCsolutionsareimplementedandthetransitioninMOOtakehold
PerformanceRecognition&CorrectiveActionandProblemSolvingCulture
shouldbeimplementedastheMOOchangebecomerelevanttoan
environment.
PersontoPositionMatchandRemunerationareHR&Executive
interventionsthatwilltaketimetodevelopandimplement.
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Entity 5.1.1
Implementation
Tactic:
TheManagingandInspiringPeopleRolloutisdoneasfollows:
1. ManagementaretrainedinandadopttheManagementChange,
EliminatingBlameandGoalCommunicationentities.
2. ManagementadoptthePerformanceRecognition&CorrectiveAction
andProblemSolvingCultureandapplyittothemselves.
3. PerformanceRecognition&CorrectiveActionandProblemSolving
Cultureareimplementedasthefunctionalrollouts(DBR,DBM&CCPM)
takeplace
4. ExecutivemanagementandHRimmediatelystarttheImplementationof
PersontoPositionMatchandRemunerationentities