TOCICO

This presentation highlights some of the core developments over the last thirty years and in particular focuses on areas where modification of the standard applications was not sufficient and a different approach was required (one that remains firmly rooted in the underpinning theory). In each instance Alex Knight demonstrates that the breakthrough has come purely from the derivation of the underlying theory and has never required the addition or integration with other theories. In particular, Alex highlights the following points: 1. There are many examples where the assumptions upon which the generic TOC applications for manufacturing were built are not valid in the service environment. As an example, the concept of choking the release to help identify the constraint is a core first step in all of the operations, project and distribution / supply chain environments and yet this is often simply not a valid option in most services. The implications of this are far reaching and require a rethink in the development and adaptation of the TOC applications for the service sector. 2. The distinction between an operations and project environment are also not always valid in a service environment. Alex exposes a number of examples where ‘both and neither’ of the conditions can exist. As a result, this basis of distinction is no longer really very helpful. Alternative criteria for establishing the position and size of buffers are required. 3. The whole concept of developing a schedule for resources to follow is often redundant. Demand emerges alongside frequent and major changes in both mix and volumes in extremely short time scales. Creating sufficient protective capacity at very short notice becomes a key issue. Establishing the processes for this require a different perspective to the traditional applications. Some of the lessons learned in this environment may have implications for changing the way schedules are developed for other environments. 4. It is inferred from standard TOC processes and the transformational strategy and tactics (S&T) trees that initiating the analysis and eradication of underlying causes of delay should be embarked upon once the system is being guided by buffer management. In many of these service environments, it is more appropriate to initiate this analysis and supporting actions before any attempt to introduce buffer management. The process of on-going improvement (POOGI) is more of a driving force than DBR (the TOC production/operations application) or CCPM (the TOC project management application). 5. In many service environments, the un-desirable effect (UDE) of ‘too early’ is just as valid as ‘too late’. As a result, there has been a need to invent a new buffer system and associated algorithms. 6. Exposing excess capacity can often happen in a matter of hours, days or weeks. This means that the synchronization of sales efforts to increase sales is very important. With staffing as a major part of the operating expense (OE) of many service industries, it is very tempting to cut OE the moment excess capacity has been revealed. In some industries, the very first steps have to be to plan and start the processes to increase sales even before the decisive competitive edge (DCE) has been achieved. 7. Many service industries have high levels of front-line professional staff who must be bought in to the approach. The number of people who can threaten the implementation's success if they do not believe in it is typically a magnitude of order higher. Many are very skeptical about anything to do with management. This has major implications for the approach and intensity of the buy-in that is required. 8. The customer is often an active participant in the delivery of the service and cannot be treated like a piece of work-in-progress. Also, exploitation of the constraint to maximize throughput per constraint minute may be inappropriate. We cannot reduce the lead time for someone to die to free up capacity. 9. Changing the mind-set of a TOC professional to work in the service industry has often taken significantly longer than starting with new recruits who have no knowledge of TOC.