About this Presentation
Is a fear of living in the Cost World preventing us from using a significant improvement lever? Some people interpret Cost World as meaning cutting costs, and as such the perceived role of procurement (reducing prices) conflicts with the spirit of TOC. Ian Heptinstall will suggest otherwise. He thinks TOC implementations might be missing some significant improvement opportunities if they only see bought-in goods and services as commodities and facts-of-life. Procurement is much more than haggling over a price, and a good procurement professional worries as much about paying too little, as paying too much. The average business spends over 65% of revenues with suppliers, mostly as part of TVC - is not a chupchick. If the bought-in part of your TVC costs you 20% more than your competitor, you will need to win 40% more sales simply to make the same profit! This Hyde Park presentation will follow on from the TOCICO webinar that Ian presented with Eli Schragenheim in January 2018. Ian will present a few key models from the world of procurement that he thinks might be useful to TOC practitioners, and looks forward to some great questions and debate. Video length: . PDF: slides.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Instructor(s)
Ian Heptinstall
Ian is an Associate Professor of Project Management at the University of Birmingham (UK).
He is a late-career academic, joining the University after 35 years of working in project management, procurement and management consulting.
His project & procurement experience primarily in the capex, construction & engineering fields.
He has been a regular TOCICO Conference attendee since 2011, and in 2020 he helped set up the annual Critical Chain virtual conference, to share CC real world experience with project management practitioners who have little or no knowledge of TOC or critical chain.
In 2016 he published “The Executive Guide to Breakthrough Project Management” about overcoming obstacles to using critical chain on capital/construction projects, in collaboration with Robert Bolton, and he supported Rene Nibbelke in producing the APM’s “Senior Managers’ and Project Managers’ Guide to Critical Chain” (2024