www.tocpractice.

com

29th International Conference of the

TOC Practitioners Alliance - TOCPA
www.tocpractice.com

November 11-12, 2016 Vilnius, Lithuania

Industry 4.0 challenges for

Lithuanian companies

Nerius Jasinaviius,
TOC sprendimai, Lietuva
11 November 2016
29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

Nerius Jasinaviius
Founder of TOC sprendimai
Founding Member of TOCPA
Consultant for unique clients
TOCICO certified SC, TP
Certified Management
Consultant
Supporter of Small and
Medium businesses
Nerius@toc.lt

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

What affects success of

organization?

Management
methods

Employees

Tools

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

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Her majesty optimization

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

What is optimization in
reality?

Often for tom management optimization equals to cost

reduction. Therefore improvement projects focus on:
Reduction of protective free capacity
Enforcing stability over inherent variability
Accepting noise of the system for the Signal
Ignoring real Signals

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

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Not everybody is happy with

results

Text

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

What is Industry 4.0

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

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What is happening with

the tools

With few exceptions, 5 of the largest Tech

companies in the world did not exist 10 years ago.
Of roughly 2,000 individual work activities, 45
percent could be automated using already
demonstrated technology (McKinsey)
All Future Successful Companies will be Technology
Driven (Gartner)
Change Management is now an Evaluation between
competing Technologies

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

The world is going banana

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

Industry 4.0 impact for

companies

Demand for unskilled or low skilled labour going down

Labour cost part in companys OE is shrinking
Cheap labour is not a competitive edge any more
Growth for highly skilled employees
Individualization of consumption
Explosion of quantity of data
Life-cycle for products, ideas and business models is
getting shorter

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

But...

Management attention still is the major constraint

Stability and growth can be achieved only by
managements ability to Build, Capitalize and Sustain
DCE
Time to make a decision is
getting shorter and shorter,
but impact of the decision is
getting bigger

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

What to do?

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

First thing first!

STOP
OPTIMIZING !!!

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

6 questions of (exploiting)
technology

If all future successful companies are Technology Driven,

and change management is an evaluation between
competing Technologies, then ability to exploit
technologies becomes critical.
1.
2.
3.
4.
5.

What is the real power of the technology?

What limitation does this technology diminish?
What rules helped accommodate the limitation?
What are the rules that should be used now?
What is the application of the new technology that will enable the
above change without causing resistance?
6. How to build, capitalize and sustain the business?

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

Decision making competence

of management

Ability to identify Undesirable Effects (UDEs)

Ability to identify Core Conflict of the system
Ability to find solution and necessary injections
Ability to plan good experiment (pilot project)
Ability to differentiate noise and Signals
Ability to get buy-in and support for the change

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania

www.tocpractice.com

Thank you !

29th International Conference of the TOC Practitioners Alliance TOCPA, Nov. 11-12, 2016 Vilnius, Lithuania