2.. Oded Cohen - 39 - TOCPA - Colombia - 12-13 April 2018 - Eng

www.tocpractice.
com
39th TOCPA International Conference

12-13 April, 2018, Colombia
TOC as support for managing

a more complex and global
environment
Oded Cohen
tocExpert
Israel, Estonia
www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

Oded Cohen
Oded has over 40 years of experience in developing, teaching
and implementing TOC methodology, solutions and
implementation processes working directly with Dr. Goldratt
all over the world. Among the countries to which Oded brings
his expertise are the USA, Canada, Japan, India, China, the
UK, Poland, Russia, Ukraine, Colombia, Chile, Peru, Turkey
and many others.
Oded has authored multiple TOC articles and contributed to
numerous TOC books.
Oded in the is the author of Ever Improve – A Guide to
Managing Production the TOC Way, published in June 2010,
translated to Chinese in 2015. Oded co-authored the book
Deming & Goldratt: The Theory of Constraints and the
System of Profound Knowledge – The Decalogue.
Together with Jelena Fedurko Oded has co-authored the
book Theory of Constraints Fundamentals.
oded.cohen.gs@gmail.com
Oded is International Director of tocExpert Ltd, TOC Strategic www.tocexpert.com
Solutions Ltd and Founder and Co-President of TOCPA. www.toc-strategicsolutions.com
www.tocpractice.com
Why TOC?
GDP goes up
World
(1960)
1.366
Trillion
Source: https://data.worldbank.org/region/world
Why TOC?
Colombia’s GDP goes up
Colombia
(2014)
378
Billion
Colombia
(1960)
4.041
Billion Population:
1960 - 16.480M 2016 – 48.653M
Source: https://data.worldbank.org/country/colombia
Colombia - Export
Source: https://atlas.media.mit.edu/en/profile/country/col/

Supporting Management
TOC as support for managing a more

complex and global environment
Management is put in charge of commercial enterprises
(better paid) in order to deliver financial results.
Yet, it is not easy to deliver the expected results!
Complex - means it is not simple as it used to be,
Global Environment - means that management has to

fights in one or two fronts: Export and Import!

Complexity and Global
Competition
• GDP goes up
• People have more money to spend
• A great deal of money goes into improving the
standard of living
• More and more products become affordable to more
and more people
• Market demands more and more new and innovative
products for cheep prices
• The world is subject to global competition
Hence, the demands from Management is continuously

increasing.
WHY TOC?
Not every company can afford heavy investments to

secure their competitiveness
Hence, Management is the key!
Expected (Budgeted) LEVEL
GAP
CURRENT LEVEL
PERFORMANCE
TIME
THE PAST TODAY
Management must take corrective actions.

Most changes are in systems
and in managerial decision making.
Dealing with Complexity
TOC - Subject Map
Based on GSP 1999
Strategy & Tactic MTO: DBR & S-DBR
Tree Production MTA, MTIA, PTA, PTO
Strategy &
Operation
Problem Solving Throughput

Management Skills The Core: Finance Accounting
Managing Constraint
(TP Based) People &
5 Focusing Steps Measurement
4 Concepts of Flow
3 Basic Assumptions
Focus & Flow
Sales Project
U-Shape CCPM – Critical
Sales Process Logic Management
Chain Project
Management Management
Distribution
Marketing
DTA –
Market Offers
TOC Replenishment
(TP Based)
Supply Chain & Retail
TOCPA –
Sharing Experience
The TOC solutions are working!!!

The strength of the
economy is Production
• Production needs Production Management

• Production is a FLOW
• Hence – the world cannot do without the skills
and methods for Managing FLOW
• TOC has a unique way to manage the FLOW
• 40 years of TOC implementations in
productions provide an outstanding and
relevant reference base

Managing FLOW means:
• Planning
 TOC planning provides: financial benefits, is
realistic and accommodates for “Murphy”
• Execution Control
 TOC provides: Focus, Priority, Real Time Status and
prompts Recovery Actions when commitments are
threatened
• Focused Continuous Improvement
 TOC provides the areas for improvements through
analyzing the TOC Buffers
TOC for managing production is FLOW & FOCUS
And hence is a very good choice
So…
If it is so good – why are we so few?
Because it demands more than one person:

• The owner(s)
• The CEO/MD
• The Production Manager
• The PPC – Production Planning and Control
personnel
Mostly - it is a top-down approach
Even though sometimes it has moved bottom-up
when the “champion” is promoted
There is a future in production
and production management
There is a potential value for each one of the key

players:
• The owner(s) – more business
• The CEO/MD – stability and growth
• The Production Manager – smooth flow to
provide contribution to the company
• The PPC – Production Planning and Control
personnel – professional growth

Produce for availability
Retailers have to hold in stock tens and sometimes

hundreds of thousands of SKUs with very few fast
movers and vast majority of slow movers:
From
Humberto
Baptista’s
presentation
11th TOCPA
Conference
http://tocpractice.com/conference
s/2014/02/15/11th-tocpa-
conference-14-15-march-2014-
brazil/
Where from are these SKUs supplied?

A great deal of the consumers goods are imported
Replacing Import
And increasing Export
Two major reasons for importing:
Price
Engineering Features
Interestingly – service level hardly plays a dominant role

for the buyers
Is the reality changing?

 Is import as cheap as it used to be?
 Is it always available?
May be there is an opportunity for local

enterprises?
There is too much inventory in
the supply chain
From John Darlington’s

presentation

The Opportunity
Who can profit from Managing Production the

TOC Way:
• Owners and CEOs of existing
manufacturing companies that experience
slow down in sales and profits
• Entrepreneurs who are looking to invest in
some companies that have a potential to
provide a nice return on their investment

Strategy
For dealing with
Complexity and Global environment
Strategy & Tactic
Tree Production &
Strategy Operations
Managing Finance
People The Core: &
Constraint Measurements
5 Focusing Steps
4 Concepts of Flow
3 Basic Assumptions
Focus & Flow
U-Shape
Project
Sales Management
Logic
Distribution
Marketing

The Strategy & Tactic Tree
A comprehensive tool to cover The S&T Tree provides a

the whole system in the framework for the
process of transition from the structured recording of the
current reality to the future steps needed to be taken in
reality. transition and gives their
logical justification.
Strategy
Tactic • Five different entities in
each S&T box:
 Necessary
S S Assumptions
T T  Strategy
 Parallel Assumptions
 Tactic
S S S S S S S  Sufficiency Assumption
T T Т Т Т Т Т
Summary
TOC as support for managing a more

complex and global environment
1. Build your operational excellence
2. Capitalize in your existing market, while seeking to
replace imports
3. Learn and develop what is needed to expand to new
markets (local and export) and new products
4. All can be achieved by a small team:
• Business leader(s),
• Internal TOC practitioners
• External TOC consultants and software providers

TOCPA –
Sharing Experience
www.tocpractice.com

2.. Oded Cohen - 39 - TOCPA - Colombia - 12-13 April 2018 - Eng

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

2.. Oded Cohen - 39 - TOCPA - Colombia - 12-13 April 2018 - Eng

Diunggah oleh

Hak Cipta:

Format Tersedia

www.tocpractice.

39th TOCPA International Conference

TOC as support for managing

www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

Colombia’s GDP goes up

www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

TOC as support for managing a more

Yet, it is not easy to deliver the expected results!

Complex - means it is not simple as it used to be,

Global Environment - means that management has to

www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

Hence, the demands from Management is continuously

Not every company can afford heavy investments to

THE PAST TODAY

Management must take corrective actions.

Problem Solving Throughput

The TOC solutions are working!!!

• Production needs Production Management

www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

Because it demands more than one person:

There is a potential value for each one of the key

www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

Retailers have to hold in stock tens and sometimes

Where from are these SKUs supplied?

Interestingly – service level hardly plays a dominant role

Is the reality changing?

May be there is an opportunity for local

From John Darlington’s

www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

Who can profit from Managing Production the

www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

A comprehensive tool to cover The S&T Tree provides a

TOC as support for managing a more

www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

www.tocpractice.com 39th International Conference of the TOC Practitioners Alliance - TOCPA

Anda mungkin juga menyukai