23rd International Conference of the

TOC Practitioners Alliance - TOCPA

www.tocpractice.com

21-22 March, 2016, Tennessee, USA

Helping companies on a
continuous growth in cases of
no decisive competitive edge
Oded Cohen, TOC Strategic Solutions, Israel
22 March, 2016

Oded Cohen
Oded has over 35 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
contributed to numerous TOC books.

articles

and

Oded in the is the author of Ever Improve A Guide to

Managing Production the TOC Way, published in June
2010. 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 is International Director of TOC Strategic
Solutions Ltd and Founder and Co-President of
TOCPA.
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oded.cohen.gs@gmail.com
www.toc-strategicsolutions.com

23rd International Conference of the TOC Practitioners Alliance - TOCPA

POOGI in cases when

DCE is not established
Introduction what is the problem?
Some history cases
The Direction of the solution
Some practical recommendations

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Introduction
The TOC Practitioners
Is the collection of TOC practitioners a community?
TOC Practitioners have:
Knowledge
Experience
Ability to construct/adapt special solutions
Why community?
For continuous learning
For preserving the knowledge that has been generated
For supporting those who want TOC but struggle in implementing
and in achieving the expected/desired results
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Successful
Implementation
Necessary Conditions:
A TOC Leader: Capable, Willing and Confident
Supportive environment
Good and relevant solution
TOC Professional for:
constructing the solution
and for auditing the implementation

Are these conditions sufficient?

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Red Curve, Green

Curve and DCE
When introduced to TOC people and companies expect to achieve
results as per the Red Curve.
The danger of the Green curve is well known.
The standard S&T trees call for the development of the Decisive
Competitive Edge DCE.
The DCE suggested by TOC is based on logistical excellence
managing flow the Toc way in production, distribution and/or in
project management.
However, we have experienced situations in which achieving logistical
excellence was not enough to provide the company with DCE. In
some cases it was not enough even for just a competitive edge.
In these cases the desires of the owners and managers to use TOC were
not reflected in the bottom line.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

The Joy and the Pain of

the Five Focusing Steps
The success of the first three steps brings joy and in most
of the cases quick bottom line results.
The initial results provide stamina to carry on to step 4.
Usually, step four for logistical systems deals with elevation of
resource capacity. When the output of the elevated capacity can be
sold - step 4 is a celebration.
However, if the constraint moves to the market the continuation of the
growth of the company largely depends on the ability to capitalize
on the improved performance.
Whether the difficulties are internal or external many companies
experience :
Slow down in the growth
Unhappiness due to the need to put more (intellectual) efforts
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

The reaction to the

difficulties in Step 4
Usually, step 4 becomes a conflict area between the
operational departments and sales/marketing. This lead to:
Disconnection between operations and sales
Reverting back to the system prior to TOC
Moving to another approach (Lean etc.)
However, there have been some stubborn and persistent
leaders that have not given up and have continued to pursue
the continued improvement in spite all difficulties.
I want to share with you some of these cases as they
represent in my eyes the essence and the spirit of TOC
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Case 1 Started in 1989

Triumph UK
1989 Jonah Program and Manual DBR
1990 Sales and Marketing, TP
1993 Implementing Disaster , the SW package
1999 Upgrading Disaster Replenishing Internal Buffers
2004 Lack of Subordination
2005 Solutions for Sales
2007 Government Contracts and A&D Projects
2010 Implementing Symphony for wood plant
2011 The New Triumph
Presented by Andrew Jackson - 21st TOCPA Conference, 2015 UK
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

1/1/1979

1/1/1983
1/1/1984
1/1/1985
1/1/1986

1/1/1990
1/1/1991
1/1/1992

1/1/1994

1/1/1996
1/1/1997
1/1/1998

1/1/2000
1/1/2001
1/1/2002
1/1/2003
1/1/2004

04

1/1/2005

99

1/1/1999

1/1/2006
1/1/2007

07

1/1/2008
1/1/2009
1/1/2010

10

1/1/2011
1/1/2012
1/1/2013
1/1/2014
1/1/2015
1/1/2016

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21st International Conference of the TOC Practitioners Alliance - TOCPA

1/1/1995

93

1/1/1993

Sales Profile 1979-2016

Good Years and Bad Years

1/1/1989

TOC
1989

1/1/1988

87

1/1/1987

Year with a Loss

1/1/1982

Presented by Andrew Jackson - 21st TOCPA Conference, 2015 UK

1/1/1981

Total Sales 1959 - 2016

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1/1/1980

Case 2 Started in 2008

TOC Applications: TA, DBR, TP, Flow management, NPD,
Sales Volume
1200

1000

800

Sales Volume

Start
TOC

600

400

200

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Case 3 Started in 2012

Retail
TOC Availability: Stock Availability, TP, Market Offer
Steps taken:
DTA Buffers in CWH and in shops
Results: dramatic reduction in the overall stock coupled with
increase in availability.
At the same time the sales increase was just 2% above the
inflation rate as compare to the desired 10%.
Set the objective to increase the amount of sales per visiting
buyer and to increase the amount of traffic.
Used UDEs and UDE clouds to develop market offers, as well as
ample of ideas (what ever can work in such environment).
Results: sales are growing slowly while investment is well
managed
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Characteristics of these
cases
1. The first phase of the TOC implementation achieved high level of
service level for their industries
2. They all have dominant and committed leaders (and in two cases
also the owners)
3. The sales people have been supportive (to different levels)
4. The leaders have been willing to listen to the TOC practitioners
and to use suggested directions and actions
Nevertheless,
None of them have managed to turn the logistical excellence into
DCE

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Is there a Problem?
No and Yes!
Theoretically no! the role and the responsibility of the
leader is to ensure the well being of the company. If the
leader cannot find the solution within the TOC the it
makes sense to search and employ any other approach
that can help achieving improved performance.
Practically Some leaders like TOC, want to use TOC and
are frustrated that TOC does not fully work for them.
The problem is that for some companies at some times the standard TOC solutions do not answer their needs
as per their specific circumstances.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

The Direction of the

solution
The problem exists only for those that love and want
TOC.
The direction for the solution is simply:

Do not Give up!

1. Employ every element of the TOC solution. Ensure it is
implemented correctly. Even if it does not provide the
expected result it will serve as a base for further
developments
2. Use TOC thinking processes to refine existing
elements of the solution and to develop additional
ideas.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Practicalities
Establish a TOC Think Tank that comprised of:
The leader
Knowledgeable and experienced TOC practitioner(s)
Few capable and willing key managers
The Thinking Tank should be determined and committed
to find a solution. As such to develop, check and revise a
solution that fits the specific circumstances of the
company.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

Some Recommendations

For the external TOC Practitioners:

Carefully conduct the CRS Current Reality Study
Do not overcommit results if there are not enough
evidence to establish the improved performance,
especially, the financial gains.
Check carefully the expectations of the leader and
their perception of what can be achieved.

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23rd International Conference of the TOC Practitioners Alliance - TOCPA