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28th International Conference of the

TOC Practitioners Alliance - TOCPA


www.tocpractice.com

9 November 2016, UK

Key Steps to Implementation


Success
Andy Watt, Goldratt UK
9 November, 2016

Andy Watt
Brief bio
Engineer and Business owner
1985 Senior Manager in Aerospace and
Defence
2000 joined Goldratt UK
2004 formed Levee
2007 MD of Goldratt UK
2011 formed RopeWeaver business
systems
2013 shareholder of Tenon Engineering
Andy.watt@Goldratt.co.uk
www.Goldratt.co.uk

www.tocpractice.com

28th International Conference of the TOC Practitioners Alliance - TOCPA

Experience
Goldratt UK
Established by Dr Goldratt in 1989
Implemented TOC successfully with hundreds of companies in
all different sectors and using different TOC solutions
Many companies still using TOC after more than 10 years and
some for over 20 years

www.tocpractice.com

28th International Conference of the TOC Practitioners Alliance - TOCPA

Experience

www.tocpractice.com

28th International Conference of the TOC Practitioners Alliance - TOCPA

Defining Success

Zero
achieve
what is possible

20% sustain the good results


over a long period (over 5
years)

98% get significant results from an


implementation

www.tocpractice.com

28th International Conference of the TOC Practitioners Alliance - TOCPA

Typical implementation
issues

Pressure from customers forces organisation to violate WIP


freeze in CCPM implementations
Pressure to maximise sales forces organisation to overload
resources and violate MTO due date quoting
Pressure to reduce inventory results in delays in
replenishment orders and subsequent stock outs
Pressure of time results in lack of agreement on
specifications for products in engineer to order
Pressure to keep resources busy all the time results in poor
delivery performance
Pressure to delay investment results in stagnation and lack of
growth

www.tocpractice.com

28th International Conference of the TOC Practitioners Alliance - TOCPA

Vicious Cycle

Managers have
less and less
time

Number of
problem areas
increase

Pressure
from
above

Managers are
forced to take
faster and
easier local
actions

Local actions
make things
worse
elsewhere

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28th International Conference of the TOC Practitioners Alliance - TOCPA

Management Constraint?

Characteristic of a constraint:
1. Complex
2. Cause and effect is difficult to understand
3. Significant variability
4. High WIP related to it
In many businesses the speed and quality of management decisions is not
good enough.
Managers do not get involved in the detail
Their time only allows them to intervene in a crisis
They abdicate responsibilities
Managers cannot achieve all the measures

www.tocpractice.com

28th International Conference of the TOC Practitioners Alliance - TOCPA

www.tocpractice.com

28th International Conference of the TOC Practitioners Alliance - TOCPA

Underlying Issue

Current thinking: Decisions must be made in isolation


Because
Variability and dependencies in an organisation
make it almost impossible to know the true value of
any decision
And
Time is finite

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28th International Conference of the TOC Practitioners Alliance - TOCPA

Direction of Solution
Management Thinking
Better Exploit Management attention and
Management global decision making
Pro-active rather than reactive mindset

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28th International Conference of the TOC Practitioners Alliance - TOCPA

Implementation Steps

Full Top Management buy-in and understanding of the details in the


S&T for the business

Embed the POOGI mindset in management and ensure significant


results achieved quickly

Strategies are measured, business performance measures are


indicators only

Management decisions are not made instantly but after analysis


conducted by a small group who develop a complete set of actions

www.tocpractice.com

People are assessed on desired behaviours not on outcomes

28th International Conference of the TOC Practitioners Alliance - TOCPA

Testing the Hypothesis

18 month test in BA Systems is ongoing


First two steps complete and three is WIP

www.tocpractice.com

28th International Conference of the TOC Practitioners Alliance - TOCPA

Challenges for us

Selling the approach to top management and


not compromising on it in sales and in
implementation

www.tocpractice.com

28th International Conference of the TOC Practitioners Alliance - TOCPA

Summary
My definition of success

More and more


businesses getting
significant results in
the long term

More and more


businesses (and people)
achieving what is
possible

More and more


business getting
significant results from
implementations
www.tocpractice.com

28th International Conference of the TOC Practitioners Alliance - TOCPA

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