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28th International Conference of the

TOC Practitioners Alliance - TOCPA


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9 November 2016, UK

Amberol
Preparing for growth
Aquila Yeong, Amberol Ltd / NTU, UK
Roy Stratton, NTU, UK
09 November, 2016

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28th International Conference of the TOC Practitioners Alliance - TOCPA

Agenda

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Breaking constraints to business growth


Knowledge Transfer Partnership (KTP)
Management time
Transparent delegation

Amberol case
Outline
TOC process map
Hybrid buffer management
Software features

Conclusion
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28th International Conference of the TOC Practitioners Alliance - TOCPA

Knowledge Transfer
Partnership (KTP)

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Growing SMEs in the UK


2 year government funded (1 year to go)
Amberol constraints to growth
Adopting focused management systems
Design, develop and implement IT based
management tools based on SDBR.

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28th International Conference of the TOC Practitioners Alliance - TOCPA

Business Growth

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(Greiner, 1998)

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28th International Conference of the TOC Practitioners Alliance - TOCPA

Phase 3: Delegation

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The next era of growth [phase 3] evolves from the successful


application of a decentralized organizational structure.
It is difficult for top-level managers who previously were
successful at being directive to give up responsibility to lowerlevel managers.
Top management that is aware of the problems ahead could
well decide not to expand the organization. Managers may,
for instance, prefer to retain the informal practices of a small
company, knowing that this way of life is inherent in the
organizations limited size, not in their congenial Personalities.
If they choose to grow, they may actually grow themselves out
of a job and a way of life they enjoy.
(Greiner, 1998)
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28th International Conference of the TOC Practitioners Alliance - TOCPA

Amberol

Capacity is not
effectively exploited

Demand is very
seasonal

Pressure on management time


is a major constraint to the
organisations growth

Operate on an MTO
basis

There is no
formal means of
managing FS

Delivery
performance
monitored
manually <90%

Quality control is
subjective and
informal

Monthly
stock
checks
Stock control
system is not
effective
Manual
stock
records

Capacity
planning is
informal

Processing time
data is absent /
incomplete

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Priority
control is
informal

Work Order
BOM data
inaccurate

Product costing and


pricing is not
systematic

BOM is inaccurate
and incomplete
Absence of accurate integrated
information systems

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Growth cloud
Because... - Delegation systems are not in place
- Owner does not wish to give up responsibility
- Only means of ensuring visibility of the entire system

Manage current
throughput

Owners time
committed to daily
operations

Grow the business

Develop future
throughput

Owners time
committed to new
business
developments

Because...
- To guide the future direction of the business
- Essential to ensure longer term sustainability
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28th International Conference of the TOC Practitioners Alliance - TOCPA

Management Time

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Constraints
Flow time
Bottleneck /CCR
Management time

Growth without revolution (Greiner, 1998)


Transparent delegation

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28th International Conference of the TOC Practitioners Alliance - TOCPA

Transparent delegation

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Means of avoiding confusion


Simplifying cross-functional control

CCR planning
Planned load control
Order acceptance
Buffer management

Releasing management time


New markets
New products

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Growth cloud

Manage current
throughput
Focused management: TOC
based signalling tools to
support transparent
delegation

Grow the business

Develop future
throughput

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28th International Conference of the TOC Practitioners Alliance - TOCPA

Amberol

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Founded in year 1969


Manufacturing Industry/Rotational Moulding
Small Company/Family Owned Business
Products:
Planters with unique Aqua-Feed Self-Watering System
Bins
Customised Products
Niche Market: mainly government/private institutions/entities

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Wicker Basket

Stone Trough

Barrels

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Manufacturing Characteristics (1/2)


Mainly MTO (Make-To-Order)
18 colour options
Customised options: moulded graphics,
crest and etc
Seasonal Demand (for planters)
Standard quoted delivery date: 3 weeks

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Manufacturing Characteristics (2/2)


Small batch/order quantities
(70% less than 10 units; 94% less than 50
units)
30% of the product requires more than a
single mould
Touch Time is significant
Heavily shared resources

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Challenges

Push System (Black-Box)


Hidden Resource Capacity
When should the excess capacity be utilised?
Lack of Visibility
Management tied down by day-to-day tasks

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Identify the Most Suitable Solution

Sage (Manufacturing Module)?


Lean/Kanban?
Other Manufacturing System?
TOC?

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Process flow

Moulded
intermediate
Stock

purchased
component
stock

Order specific
purchased
components

Name
plates
Powder

Mould & Trim

Assemble

Wrap &
Dispatch

Customer

Standard Lead time= 3 weeks

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Oven

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Process flow, control and buffering


Moulded
intermediate
Stock

purchased
component
stock

Name
plates

C
C
C

Powder

Order specific
purchased
components

Mould &
Trim

Assemble

Wrap &
Dispatch

Customer

Lead time= 3 weeks

Control point

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Stock buffer

Capacity buffer

Time buffer

28th International Conference of the TOC Practitioners Alliance - TOCPA

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Buffer Design Consideration


6 Days

3 Days

3 Days

3 Days

Standard lead time 15 days

Why not shorten the lead time?


Why the need for Pooling?
Why the need for Blue Zone?
What if the necessary Touch Time exceeds 50% of Buffer?

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Buffer Design: Scenario 1

Touch time on CCR

Current loading on moulding arm

6 Days
Daily
Load

3 Days

3 Days

3 Days

Pooled
We
promise
standard
lead time

Standard
lead time 15 days

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Time (days)

28th International Conference of the TOC Practitioners Alliance - TOCPA

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Buffer Design: Scenario 2


Current loading on moulding arm

6 Days

Touch time on CCR

3 Days

3 Days

3 Days

Daily
Load
We
promise
standard
lead time

Standard
lead time 15 days

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Time (days)

28th International Conference of the TOC Practitioners Alliance - TOCPA

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Buffer Design: Scenario 3


Current loading on moulding arm

6 Days

Touch time on CCR

3 Days

3 Days

3 Days

Daily
Load

We
promise
standard
lead time

Standard
lead time 15 days

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Time (days)

28th International Conference of the TOC Practitioners Alliance - TOCPA

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Buffer Design: Scenario 4


If projected buffer consumption is more than 50% Extend lead
time (increments of 5 days)
Current loading on moulding arm

11 day

Touch time on CCR

3 Days

3 Days

3 Day

Daily
Load

standard
lead time

Standard
lead time 15 days

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new
lead time

Time (days)
Additional 5 days

28th International Conference of the TOC Practitioners Alliance - TOCPA

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Process flow, control and buffering


Moulded
intermediate
Stock

purchased
component
stock

Name
plates

C
C
C

Powder

Order specific
purchased
components

Mould &
Trim

Assemble

Wrap &
Dispatch

Customer

Lead time= 3 weeks


D

Control point

Stock buffer
Overview

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Capacity buffer

Time buffer

Detailed

28th International Conference of the TOC Practitioners Alliance - TOCPA

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Business Operation System (Before)

Moulding
Raw Materials

Finishing/
Assembly

Manufacturing
Information

Customer

Administration

BOM

Commercial
Information

Stock
Information
Sage

Management

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Business Operation System (After)

Raw Materials

Finishing/
Assembly

Moulding

Customer
S-DBR
(Production
Planning &
Control)

Capacity
Information

Flow
Visibility
Continuous
Improvement

Management
Administration

Sage
BOM

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Commercial
Information

Stock
Information

28th International Conference of the TOC Practitioners Alliance - TOCPA

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Implementation
Invoice
Dispatch
CRM
Finishing
Purchasing
Office Admin
To Inform

Work Order
Sales Order

Planned Load

Quotation

Master Scheduler

Moulding

To Inform

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Software Modules

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Master Scheduler

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Planned Load

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Planned Load Details

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Estimator

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28th International Conference of the TOC Practitioners Alliance - TOCPA

Conclusion

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Business growth is closely associated with


revolutions between local and global thinking.
Focused management tools are key to resolving this
conflict.
The generic TOC signalling concepts / tools provide a
basis for customised development.
IT systems need to be subordinate to this underlying
focusing philosophy.

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28th International Conference of the TOC Practitioners Alliance - TOCPA

References

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Greiner, L. (1998) Evolution and Revolution as Organisations Grow. HBR, May-June.

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28th International Conference of the TOC Practitioners Alliance - TOCPA

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Aquila Yeong
Aquila is currently engaged as a KTP associate with
Ambrol Ltd and Nottingham Trent University (NTU) as
a Business Process/System Designer/Programmer. At
the same time, he is also pursuing his Doctorate
Degree focusing on Operations Management under the
supervision of Dr. Roy Stratton. He was an Electronics
Engineering Lecturer and Engineering Course
Coordinator in KLIUC (Kuala Lumpur Infrastructure
University College) before joining Electcoms, a
telecommunication service provider in Malaysia. He
has held management positions in Engineering (R&D
and Technical Support), Sales, and Customer Service
departments in Electcoms. He holds B. Eng (Hons)
Degree in Electrical & Electronics Engineering (Uniten),
and pursued M. Eng in Telecommunication (MMU). He
has also graduated in MBA with Deans Achievement
Award from Nottingham Business School.

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aquila.yeong@ntu.ac.uk

28th International Conference of the TOC Practitioners Alliance - TOCPA

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Roy Stratton
Roy is a Reader in Operations and Supply Chain
Management and actively involved in TOC related
teaching, research and consultancy He is Director of
studies of a number of TOC based doctoral students. His
is also the route leader of a TOC based Executive MBA
delivered in collaboration with QFI Consulting. Previously,
Roy worked for Rolls Royce Aero Engines in an internal
consultancy role and has since been actively involved in a
wide range of industry-based research projects. He has
published widely in both professional and academic
journals and has co-authored two educational books.
Roy is a chartered Engineer (F.I.Mech.E.) and has been
awarded a BSc in Mechanical Engineering (Nottingham),
an MSc in Manufacturing System Engineering (Warwick),
and a PhD in Supply Chain Management (Nottingham
Trent). He is certified in all TOC ICO fields.

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Roy.stratton@ntu.ac.uk

28th International Conference of the TOC Practitioners Alliance - TOCPA

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