08-Andrew Jackson-Oded Cohen - 21 TOCPA - UK - 11 November 2015 - V3 - For Web

21st International Conference of the
TOC Practitioners Alliance - TOCPA

www.tocpractice.com
11 November 2015, UK
TOC in Triumph - A 25 years Journey
Andrew Jackson, Triumph Furniture, UK

Oded Cohen, TOC Strategic solutions, Israel
11 November, 2015
Andrew Jackson
With over 30 years experience in the office furniture industry;
Andrew backs his drive for innovation, quality and
improvement with TOC practices.
After years spent as a production manager, he is in the perfect
position to continuously challenge our production and design
teams to deliver on new product ranges. In 2011 he introduced
a comprehensive One Stop Shop product portfolio all
designed and manufactured by Triumph. This product portfolio
is suitable across; office, leisure, health, government sites and
educational establishments.
Today, Andrew directs the Triumph design team and is
encouraging exciting product designs for Accommodation and
Educational projects to complement the existing ranges.
ajackson@triumphfurniture.com
www.triumphfurniture.com
www.tocpractice.com

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 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. 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.
oded.cohen.gs@gmail.com
www.toc-strategicsolutions.com
www.tocpractice.com

Triumph Furniture
Triumph is one of the UKs leading furniture manufacturers.
Nearly 70 years of experience combined with an unstoppable drive for innovation, ensures
Triumph Furniture continues to win high profile contracts and awards. From family run
headquarters in South Wales, our design teams focus on style and quality translates into
highly effective work and breakout solutions for our customers.
Manufacturing an unrivalled range of products, Triumph Furniture succeeds in creating
efficient and motivating environments across the UK, Europe and Asia. Flexible and
reliable service makes Triumph Furniture as the leading choice for government
departments, educational establishments and corporations. Triumph Furniture has
showrooms in South Wales, London, Holland and Shanghai.
Turnover: 19m
No. of Employees: 258
www.tocpractice.com

Triumph History Overview
www.tocpractice.com

Triumph Furniture
www.tocpractice.com

Triumph Furniture
www.tocpractice.com

Merthyr Factory
www.tocpractice.com

Dowlais Factory
www.tocpractice.com

Triumph Furniture
www.tocpractice.com

Triumph Furniture
www.tocpractice.com

Triumph Furniture
www.tocpractice.com

Triumph Furniture
www.tocpractice.com

The Markets
www.tocpractice.com

Triumph Today
www.tocpractice.com

Brief History
www.tocpractice.com

Sales Profile 1959 -2016

25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
Starting TOC
1989
Total Sales 1959 - 2016
www.tocpractice.com

The Journey with TOC

Key milestones on the journey:
1989 Manual DBR
1993 - Implementing Disaster - the SW package
1999 - Upgrading Disaster Replenishing Internal Buffers
2004 Lack of Subordination
2007 - Government Contracts and A&D Projects
2010 Implementing Symphony for Dowlais plant
2011 The New Triumph
www.tocpractice.com

1/1/1978
1/1/1979
Starting TOC
1989
1/1/1980
1/1/1981
1/1/1982
1/1/1983
1/1/1985
1/1/1986
1/1/1988
1/1/1989
1/1/1990
1/1/1991
1/1/1992
1/1/1993
1/1/1994
1/1/1995
1/1/1996
1/1/1997
1/1/1999
1/1/2000
1999
1/1/1998
1/1/2002
1/1/2003
1/1/2004
1/1/2006
1/1/2008
1/1/2009
1/1/2010
1/1/2012
1/1/2013
1/1/2014
1/1/2015
1/1/2016
2011
1/1/2011
2010

1/1/2007
2007
1/1/2005
2004
www.tocpractice.com
1/1/2001

with TOC Milestones
1/1/1987
1989 1993
1/1/1984
The Introduction of TOC

April 1989 TOC presentation at Merthyr Tydfil
Recognizing the need Shorter Lead Time and
delivery consistency
Summer 1989 - Jonah Program (JP) 2 Directors
- Production and Finance
Implementing DBR
Production and Logistics managers to JP
www.tocpractice.com

1/1/1978
1/1/1979
1/1/1980
Year with a Loss
1/1/1981
1/1/1982
1/1/1983
1/1/1985
1/1/1987
TOC
1989
1/1/1988
1/1/1989
1/1/1990
1/1/1991
93
1/1/1992
1/1/1993
1/1/1994
1/1/1995
1/1/1996
1/1/1997
1/1/1998
99
1/1/1999
1/1/2000
1/1/2002
1/1/2003
04
www.tocpractice.com
1/1/2001
1/1/2004
1/1/2005
1/1/2006
07
1/1/2008
1/1/2009
10
1/1/2010
1/1/2011
1/1/2012
1/1/2013
1/1/2014
1/1/2015
1/1/2016
11

1/1/2007

Good Years and Bad Years
1/1/1986
87
1/1/1984
The Link to TOC Biography

The evolution of TOC within Triumph reflects the evolution
of TOC globally
Triumph:
Openness to own problems and challenges
Willingness to check what TOC had to offer
TOC:
1986 - TOC and the 5 steps of focusing
1987 Jonah program (based on GSim)
Capacity Constraint and Market Constraint
1991 - The move to TP Thinking Processes (any constraint)
1991-3 Developing Disaster S/W for managing production
www.tocpractice.com

Starting with Production

Production needed a change: Shorter LT and Reliability
Before 1980 QLT = 12-20 weeks
1980 QLT = 6 weeks
1989 Sales announced 7 days LT for high runners
Implementing DBR
Support by the Finance Director - Throughput Accounting

Measurement and Bonuses
Results and Challenges in production
Yes, the Constraint moved to the Market
www.tocpractice.com

The Green Curve

From 1983 it became apparent that OPT could assist in
achieving improved performance in a short time, but
thereafter the system went into financial stagnation.
This was recorded in The Goal,
The constraint moved from production (capacity) to the
Market
To address the market constraint - TOC recommended to
capitalize on the improved logistical performance.
But, in reality - the expansion of TOC from production to
marketing and sales was not that easy
www.tocpractice.com

1990 Increased fierce

competition
Currency Crash of the Pound versus the Euro

The main competitor had significant export
They launched price war
Triumph was squeezed between two major players
The company was heading to a real trouble
Marketing could not come with any ideas to increase sales.
At the same time production and logistics continued to

improve there performance trying to support by having
outstanding service.
That raised the need for a better IT System to manage
Production and Logistics
www.tocpractice.com

A Software called Disaster
TOC started with OPT (1975) Creative Output

In 1986 Eli Goldratt stopped the selling of OPT - no
more software.
Apparently Jonahs needed software to manage their
production
AGI built a separate unit to develop, market and service a
newly built software (less complicated than OPT)
Eli Called it Disaster (for educational reasons)
www.tocpractice.com

www.tocpractice.com

www.tocpractice.com

Implementing Disaster
1993 Development Partners
The Drum was given to the Assembly (based on Due Date
for loading trucks)
Daily material release used the Rope (4 days)
Bonus scheme based on full trucks dispatched on time.
Worked exceptionally well but obsolete itself.
1999 - Introducing replenishment buffers to create instant
availability for high speed items:
FG
Component store before painting
After Blanking
Worked well for production but had NBRs with Wholesalers
www.tocpractice.com

Necessary but not sufficient

The Improved performance kept the company alive but in
continued struggle for survival
The Market is and has been for the last 25 years the prime
constraint of the company
The core problem of the company is not the constraint. It is
the conflict that prevent addressing the constraint.
There was no Silver bullet for Triumph.
The competition was too strong and Triumph missed the train
during the late 1980s. The gap was too big to close.
There were two conflicting approaches:
1. Demand production to reduce cost
2. Develop ideas that can increase sales
www.tocpractice.com

The sad reality of not

sorting out a core problem
You can ignore the core problem

but the core problem will not
ignore you
www.tocpractice.com

2004 Lack of Subordination
The company desperately needed sales

Senior Management focused 100% on Sales
Production was left to run on their own
There was lack of subordination to the principles of
managing the flow the TOC way.
There was cheating on the material release
There was pursue of local optima such as Batching
Buffer Management was just chasing out blacks, no POOGI
The culture of production management turned into bullying
All lead to deterioration of the outstanding DDP
www.tocpractice.com

2004 - 2015
The 9/11 caused a major collapse in the market
Need to develop a full direction for the company to get
more sales
Developing of the sales process
Exploring Export
Developing the Government Sales
Developing new line for the A&D segment
While sales grow the sales process was allowed to take
second place and eventually failed.
2012 starting to implement a sales process (adapted
from Balliistix) that has started to work in 2014/5
www.tocpractice.com

The major learning from

the journey
Building the operational excellence has been not easy but
achievable.
Lack of ideas what to do when the constraint moved to the
market.
For over ten years the company exploited every idea and
opportunity to address the market constraint.
Eventually, the company has developed its own sales
machine. It has started bringing in more sales.
An important mindset change: stop fighting with the
competitor, focus on what you can do to address the
market constraint.
www.tocpractice.com

The major learning from

the journey
While the market constraint hit badly, there was no internal

agreement on the way ahead.
TOC contributed significantly to the company and to
management:
Improved Logistical performance
Bringing simplicity to the complex environment of the T
plant
Creating a simple and practical language
Provided the focus for outstanding performance (LT and
accuracy of delivery)
Actually, the improved production salvaged the company
from going under.
www.tocpractice.com

90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
1/1/1983
1/1/1984
1/1/1985
1/1/1986
1/1/1989
1/1/1990
1/1/1991
1/1/1992
1/1/1993
1/1/1994
1/1/1995
1/1/1996
1/1/1997
1/1/1998
1/1/1999
1/1/2000
www.tocpractice.com
1/1/2001
1/1/2002
1/1/2003
1/1/2004
1/1/2005
1/1/2006
1/1/2007

1/1/2008
1/1/2009
1/1/2010
1/1/2011
1/1/2012
1/1/2013
1/1/2014
1/1/2015
1/1/2016
Major KPIs of the Journey
1/1/1988
Annual sales per employee 1983 - 2016
1/1/1987

Labour cost as %age of sales 1962 - 2016
40%
35%
30%
25%
20%
15%
www.tocpractice.com


Stock Values 1959 - 2016
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
www.tocpractice.com

The New Triumph - 2011

Sales 2012-2016
22,000,000
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
1/1/2012
1/1/2013
1/1/2014
1/1/2015
1/1/2016
Sales 2012-2016
www.tocpractice.com

The New Triumph - 2011

Profit/Loss 2012 - 2016
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
1/1/2012
1/1/2013
1/1/2014
1/1/2015
1/1/2016
-100,000
www.tocpractice.com

What is next?
There are more things needed to be done:
Stock Management
Improving Distribution Reduce Lead Time
Production Planning and Control in the
Dowlais Plant
Continuing to Invest in production process
Expanding into China
www.tocpractice.com

The TOC Perspective

the Key Learnings
Build Capitalize - Sustain
TOC Needs: capability, willingness and
confidence
The determinism to continue to fight for
keeping the company alive.
Use whatever is available in the TOC
knowledge and experience to achieve the
objective
www.tocpractice.com


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21st International Conference of the

TOC Practitioners Alliance - TOCPA

TOC in Triumph - A 25 years Journey

Andrew Jackson, Triumph Furniture, UK

21st International Conference of the

21st International Conference of the

21st International Conference of the

Triumph History Overview

21st International Conference of the

21st International Conference of the

21st International Conference of the

21st International Conference of the

21st International Conference of the

21st International Conference of the

21st International Conference of the

21st International Conference of the

21st International Conference of the

21st International Conference of the

21st International Conference of the

21st International Conference of the

Sales Profile 1959 -2016

Total Sales 1959 - 2016

21st International Conference of the

The Journey with TOC

21st International Conference of the

21st International Conference of the

Sales Profile 1979 -2016

Total Sales 1959 - 2016

The Introduction of TOC

21st International Conference of the

Year with a Loss

21st International Conference of the

Sales Profile 1979 -2016

Total Sales 1959 - 2016

The Link to TOC Biography

21st International Conference of the

Starting with Production

Support by the Finance Director - Throughput Accounting

21st International Conference of the

The Green Curve

21st International Conference of the

1990 Increased fierce

Currency Crash of the Pound versus the Euro

At the same time production and logistics continued to

21st International Conference of the

A Software called Disaster

TOC started with OPT (1975) Creative Output

21st International Conference of the

21st International Conference of the

21st International Conference of the

21st International Conference of the

Necessary but not sufficient

21st International Conference of the

The sad reality of not

You can ignore the core problem

21st International Conference of the

2004 Lack of Subordination

The company desperately needed sales

21st International Conference of the

21st International Conference of the

The major learning from

21st International Conference of the

The major learning from