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Video Presentations Videos available from the March 1997 Jonah Upgrade Workshop in San Antonio. JSA-1 - Harris Corporation
Presenter: The Fab-8 Story This is an update on Project Raptor: the world's first eight inch wafer fab plant. Harris is a world wide company with annual sales of $3 Billion. Their semiconductor division located at Mountaintop, PA has used the TOC Project Management application to put together and control the building of new facilities to produce the eight inch wafer fab. It has been four years since they were first introduced to the Theory of Constraints Production Application. Although the industry has grown by 10%-20%, Harris semiconductor has grown by 40% (increasing not just their market, but eating into their competitors' share as well). They have gone from two cycle turns a year to seven cycle turns, and expect to increase to ten cycle turns a year. Due to their excellent results, they were given the responsibility for Harris Corporation's single highest investment, $250 million-Project Raptor. The project would double their currant throughput capacity and allow them to be the first in their industry to introduce the eight inch wafer fab. The project has allowed them to come up with some new technologies including: development of the world's first arsenic Power Discrete Wafer, new substrate, automation, and clean room design. The industry standard for completing the construction of the building with all the equipment installed is usually between 28-36 months, but to be fully ramped up to begin work and start seeing a return would normally take around 54 months. Harris Semiconductor used the Critical Chain/Project Management concepts of TOC to strategically design the plan. They came up with a schedule of 18 months. In the beginning, the company suffered some delays due to circumstances beyond their control like bad weather as well as having an equipment installer default on his contract. Despite these uncertainties, Project Raptor was completed and ramped up in 13 months (actually three days before the 13 months was up). About 40 days of the buffer was used for the bad winter weather and another 15 days of buffer was used for facilities delay during equipment installation. The company simultaneously coordinated their hiring and training so that they could be ready when the facilities were completed. Key results that Harris obtained are below:
Harris Semiconductor now plans to exploit their doubling of capacity with "unrefusable" marketing offers. Furthermore, they intend to elevate the constraint by constructing three more Fabs - this time at an even faster rate.
JSA-2 - Rockland Manufacturing
Presenters: Positive effects for our people, personally and professionally Sam Pratt, Dan Shaffer, and Tim Davis deliver a presentation on the total impact of TOC on a company and its employees. Their company is Rockland Manufacturing, a job shop located in Bedford, Pennsylvania. Rockland is about 100 people strong and has annual sales of $10 million. In February 1994, the two top leaders of the company attended the Jonah Program® to fully analyze their company. As a result, they increased their throughput and profits. In January 1995, Rockland had their managers and sales team go through a Management Skills Workshop, and identified that they needed to continue improving by having a production workshop. They also started TOC teams to meet during lunch. They were so pleased with the MSW sessions that they subsequently had the rest of their managers and group leaders attend another five-day MSW session in May 1995. The company proceeded with the Drum-Buffer-Rope Production and used the MSW tools to help them implement DBR in August 1995. As a result, throughput went up 25%, WIP decreased by 35%, and consequently, profits increased. Rockland increased their MSW learning with a refresher session in January 1997 for the 50 people who had previously attended the sessions before. They went on to have weekly staff meetings and increased their usage of the Thinking Processes. Some of the measurable results include:
Some intangible results were shown in a Rockland video (included herein). Examples concern the employees using MSW tools to solve problems in their private lives and the results they obtained. The video also shows the benefits these employees received from the implementation of DBR and how some conflicts and concerns were solved using the MSW tools when dealing with vendors. The bottom line result is that Rockland has made more money in the past two years than they did the past ten years. They had an increase of 2500 orders and the only late shipment was due to a transposing error in the shipping date. With DBR, scheduling has never been easier, even though they schedule with paper and pencil.
JSA-3 - How to 'Jazz Up' Your Presentation
Presenter: Patrick has many years experience in theater arts and offers insight to making business presentations more effective. He discusses and demonstrates how an audience sees and hears a presentation while offering helpful hints on dos and don'ts for a presentation. He highlights the elements of physical presence and vocal communication. The physical elements discussed are body movement, composition, focus, and gesturing. He covers locomotion of a presenter and its effect on communication, movements that focus the audience's attention, gestures and their effects on the presentation, as well as timing of gestures and their effect on communication. These elements are detailed with exercises on how presenters can prepare, so that they appear comfortable and relaxed. The vocal elements are the vocal parameters of rate, pitch and volume. During the presentation Patrick and the audience demonstrate some suggested vocal exercises for warm up and effective speaking. It takes 40 minutes to warm up the human voice and public speakers must prepare their vocal chords for long speaking engagements just as marathon runners train and condition themselves. The presentation also includes Patrick leading volunteers through an interesting exercise demonstrating the effectiveness of physical and vocal timing.
JSA-4 - Orman Grubb Company
Presenter: Further Adventures in the Industry with the Most UDEs The Orman Grubb Furniture Company, a manufacturer of home and office furniture, presents its experiences in applying TOC for Distribution and the Thinking Processes. The company recognized that to meet its customers' needs it must not only offer a good product but also good service, with innovative ideas. The company realized there is a great mismatch between furniture dealers' buying traditions and consumer demand. Through the use of the Thinking Processes (a buyers CRT, CLOUD and FRT) the company analyzed the problems facing furniture dealers and the dilemma buyers have with purchase orders in order to make an "unrefusable offer". While their offer seems to be a simple solution it is very revolutionary to the furniture industry. In its offer the company distributes to dealers based upon a replenishment system that is tied to consumer purchases instead of dealer purchase orders. This avoids the problems of having the wrong inventory sitting in warehouses, which later need to be discounted. This system allows for a steady flow of product from the manufacturer to the dealer with some dealers having up to 25 inventory turns. Also, the steady stream makes receivables from the dealers turn on a more timely, 29 day average. Furthermore, employees at Orman Grubb Co. find this system to be less hectic and more consistent for scheduling. According to Jeff his top 50 dealers have a 46% sales increase, and he has not lost a single dealer since the system has been in place. He said, "the dealers will not walk away from my company because they don't want to go back to the old way of doing things."
JSA-5 - Update on TOC Measures and Incentives
Presenter: Debra's book on measurements is about one half finished and will address two main concerns - on time real measures and how to evaluate strategic decisions. She hopes it will be available in July 1997. Debra addresses her concepts as she describes the book. Management accounting must provide information to make local decisions as well as strategic decisions and also measure the key results. What she is really talking about is moving into direct accounting. She is working with a company that is using the new system, so included in the book will be a blueprint from a publicly traded company. The approach is simple, effective, elegant and inexpensive. The book will:
Also, the book will address, among other things, how to move from accrual to cash basis, how to remove the impact of one time events, how to move from the accounting life of an asset to an economic life. Another point made is that measures need to reinforce the behavior a company is seeking from its work force. Debra talks about how she uses the Management Skills workshop to help break down the erroneous measurements currently in use and rebuild them into practical measurements which will encourage correct behavior in terms of T, I, and OE.
JSA-6 - Oregon Glass
Presenters: Transforming a Glass Company with TOC This presentation is a review of Oregon Glass' experience with the Theory of Constraints. The Theory of Constraints became an ongoing answer to some very serious problems faced by Oregon Glass in the 19900s. Oregon Glass makes tempered glass, a type of glass that is a result of heating then cooling in a controlled manner. Tempered glass is a safer alternative to other forms of glass because when or if broken it does not break into shards but rather tiny pieces. In 1989, 83% of Oregon Glass' business was centered around supplying tempered glass to the wood door industry. Changes in the law regarding the forestry industry, however, drastically effected Oregon Glass' market in 1990. The price of lumber tripled in a very short time, thus increasing the price of a wood door and decreasing demand for them. The wood door industry's (a large part Oregon Glass' customer base) ability to compete was seriously hampered. Additionally, Oregon Glass' biggest customer was bought by a company with its own tempering capacity. This represented a quarter of their total annual sales. They needed to change with the times and find new customers who would buy what they could make. Oregon Glass was left with a tremendous amount of debt and a large surplus of capacity. Initial efforts to address the marketing problem resulted in failure. The Goal was read and reread but it was still a novel. Then, Wayne Metcalfe attended an Overview of the Theory of Constraints for Industry and the decision was made to pursue Theory of Constraints. Ron began working with TOC in production (based on The Goal) and had some initial successes, but these quickly became bogged down. After attending a Production Workshop and getting some help from the AGI network they were able to set a strategic constraint (tempering) and worked diligently on a subordination schedule. They are now running at 99% on time delivery and their constraint is external, the market. The three presenters attended a Jonah Program® in early 1996 in order to construct an unrefusable offer. With the increase in on-time delivery, they now had the credibility with their customers to try something different. Their offer centered around the way glass is packed and shipped, which has traditionally been very troublesome to the customers. Oregon Glass introduced the Easy Lite Rider (patent pending), a storage box which enables Oregon Glass to ship the glass, separated in the way the customer wants it. The separation problem was such a large bottleneck at the customer site, that once the problem was eliminated it resulted in roughly 50% more capacity for the customer and 7% less internal scrap. The competition has failed to follow with a similar system claiming that it is too costly. However, Oregon Glass estimates that the cost of the Easy Lite Rider pays for itself in 20 days. The management team learned that sales and production must and can work together as a team, that they can create new ideas and that profits are possible in the tempered glass industry.
JSA-7 - New Workshop for TOC for the Individual
Presenter: Sometimes people are torn between two decisions and do not know how to decide what is best for themselves. Good personal decisions involve more than logic. We may want something that seems illogical, yet it still makes sense for us to choose it. It is the successful integration of logic and emotion that Limor teaches. The new one day workshop is designed so people will know how to make a good decision in their personal life. During the workshop, individuals learn how to use a simplified version of the Thinking Processes in order to look at the assumptions that drive reactive behavior. Dr. Winter-Kraemer takes people through the basics of a cause-effect relationship to surface assumptions behind their feelings and rationalizations. The use of the Thinking Processes allows participants to understand the ramifications of assumptions in their daily lives. The presentation outlines three examples of individuals using TOC in their personal lives. Since the use of the cause-effect tools has been simplified, the workshop is a good introduction to the Thinking Processes before attending a Management Skills Workshop or a Jonah Program®.
JSA-8 - TOC Within Manufacturing Companies
Presenter: Ted's presentation is based upon his Ph.D. work for Cranfield University, where he has been examining why some people have used TOC without achieving success. He has taken several conflicts from different people who have attended TOC courses to see if he could come up with a generic conflict cloud. In doing so he was attempting to find a possible missing injection that could ensure success to those pursuing TOC. He found that the basic conflict was within the individual, and was between change and the status quo. Ted illustrates how individuals find themselves in what he refers to as a "paradigm lock." In other words, the person involved in the necessary change does not believe that he or she can deal with the constraint and remain in control at the same time, thereby forcing him or her to become frozen in their improvement efforts. The presentation concludes with discussions concerning the key elements necessary for overcoming this conflict and how to effectively deal with the five layers of resistance.
JSA-9 - Using the MSW to get Results
Presenter: Oded discusses how to address the Human Friction Constraint. A big problem involves knowing where to start in order to get the best results. Often some of the problems raised do not appear particularly important to achieving the company goal (such as personal problems), but by addressing these seemingly unimportant problems, one can have a major impact on the core problem. Oded discusses and illustrates different levels of TOC, Strategies (JonahSM), Functional (production, project management and distribution), Inter-relationship (Management Skills/TP for day to day) and the Personal level. When addressing constraints one often finds there is another important element that must be considered. Often at the core of these problems there exist policy constraints, human friction constraints and personal constraints. Therefore in the structure of TOC it will sometimes be necessary to address the inter-relationship of people and personal issues, before addressing the physical constraints. Often the Management Skills Workshop should be a prerequisite to the logistical issues in order to get the best results. There must be an amalgamation of the policy/measurement change with the individual change. The MSW can align the person with the company by addressing the conflict that may exist between a personal agenda and a company agenda. It does not have to be necessary to make personal sacrifice to achieve an organizations goal.
JSA-10 - ARCO Products Presenter: Ed Feck Improving Compliance with Production Safety by Showing Cause and Effect Impacts and How to use the TP to Interpret a Union Contract Mr. Feck focuses his presentation around two primary issues. The first is what he calls "the elimination of time-wasting by the power of the written word." This involved a cookie-cutter approach to contract evaluation centered on defining the issues clearly and providing the necessary language for clarity. Mr. Feck said that it was amazing how people can think they are talking about the same thing when they really aren't. An example is given with regard to holiday compensation. Now, when an employee has questions about holiday pay a logical map is given out, thus answering the question and ultimately resulting in less friction. The second issue dealt with pertained to safety issues. There are two primary points in the refining business where employees are in the most danger of having an accident. The first is during maintenance or repair of a specific resource. The second is, if the resource was not properly handed back to the production personnel, it may be only after that resource goes back into operation, that the safety problem is found. An internal audit with regard to safety compliance found that 50 out of 50 jobs were given to maintenance correctly but 49 out of 50 were given back wrong, creating a major problem. ARCO is now using trees and the MSW conflict resolution tools to convey need for safety and the response has been excellent and well received.
JSA-11 - Government of Israel
Presenter: Enhancing Israeli Defense Industry Performance Dr. Deutsch presents his experience with how to take care of a national problem - the improvement of the performance of the Israeli defense industry, using TOC. Israel has a separation of responsibilities between the armed forces IDF (Israeli Defense Forces) and the civilian IMOD (Israeli Ministry of Defense). The IDF deals with defense while the IMOD furnishes the IDF the equipment and services necessary for IDF to perform their duties. The IDF defines the what, how many and when to purchase while the IMOD determines from whom, for how much and how they are going to purchase. Conflicts occur between the IMOD and the IDF and there is a high level of distrust between them. The Israelis do not have a "truth in negotiations" - where industry must openly disclose truth about products to government in negotiations. Dr. Deutsch went through the Jonah Program®, and used the road map to indicate what he needed to implement. However, he was given a very minimal budget. He had no resources and had to get a lot of buy in for his ideas. Using the MSW tools, Dr. Deutsch focused on the policy restrictions that was causing all the conflicts. He used the PRT to overcome resistance to his target to get cooperation between IDF and IMOD, and involvement and investment for purposes of procurement and production in the industrial development unit. His presentation highlights the strategic and tactical conflict clouds, with the assumptions and injections listed, and where he intends to focus next - to bring in TOC production and project management.
JSA-12 - Valmont Industries
Presenters: It just can't be this simple Allen joined Valmont right out of college with a background in cost accounting. Jeff Wood, (then General Manager) told him to read The Goal. His first reaction after reading the book was not about T, I, and OE but how he wasted four years of his life in college! Prior to 1987 Valmont used an MRP system and daily summaries. Their Bill of Materials is simple, they have 7-8,000 different part numbers. They scheduled all shipping items with a Monday ship date and scheduled backwards. They tried to keep efficiencies and productivity high while keep work load even. They experienced a lot of expediting due to late week starts, past due orders grew, rescheduling became the norm. Pre-determined batch sizes caused big queues. Then in 1987 Jeff Wood gave copy of The Goal to the staff and asked for everyone's opinion. Everyone thought it was talking about Valmont. They realized that all their efforts did not mean anything if they were not tied to the constraint. Set ups, efficiencies, batch sizes meant nothing, if not tied to the goal. They implemented DBR. The Drum being the finite schedule of the system's constraint. they allowed some machines to sit idle, but they still measured the constraint by traditional methods. So, next they implemented Buffer Management and they established a CCR analysis report to show where there were buffer holes in the system. Allen shared examples of how they eliminate buffer violators, to protect their constraint. All decisions are made based on T, I, and OE. Valmont has improved ten fold since the implementation of TOC. Their on time delivery is 92% compared to the industry which is just above 85%. The industries lead time is 4-6 Weeks on small equipment and 10-12 Weeks on large equipment. Valmont's is similar except the are using DAYS instead of Weeks! In ten years they have grown from 156 people to 250 people. Some of the additional people are to run a third shift. They have the flexibility to establish their constraint capacity based on knowing what is out in the marketplace. In 1986 they were losing money, now the net annual profit is $6.5 million. A question was asked regarding the employees feelings toward not working. Allen stated that there were some difficulties, in the beginning, in employees believing that their jobs would be safe if they stopped working. Valmont stressed the point that if they had nothing to do, and they had no holes in their buffer, then they had done a good job. Employees now do maintenance if they have no work to do.
JSA-13 - Overcoming the 5th Layer of Resistance
Presenter: There are five layers of resistance to change. The first four layers can be handled by using logic, with the help of the Thinking Processes. Buy-in and collaboration from necessary people can be achieved by using the Communication CRT, FRT, NBRs and PRT and TrT. When we finish addressing layer 4 - we have a plan of action and we are actually ready to implement. However, as many have already experienced, we may hit the fifth layer. The fifth layer is an unverbalized fear. It may have several manifestations. One of which is "Say yes and do nothing". In this situation emotion prevails and we don't have too much hope with logic. Layer 5 may be overcome by leadership, charisma or just subordination to the common goal. In the absence of the above, managers tend to revert to the use of power and brute force. A recent application of the 3 UDE cloud for personal focus is offered as a method to build a better rapport with an individual in question. The process helps both sides to understand what it is that blocks the individual from moving forward. The presentation describes the process and the logic behind it. It is based on an interview which is critical. An interview means that one talks about his/her own problems and the other person asks the questions and records the answers - but also helps and gently scrutinizes the work
JSA-14 - How to Give a Recommendation
Presenter: An unconventional methodology like TOC requires a different method to achieve buy-in. Dale presents a methodology for achieving buy-in, the recommendation process. He begins with some overall guiding factors which are essential when giving a recommendation: achieve bottom line results with minimum investment and follow the moral code (nobody gets hurt and the client should eventually become self-sufficient). Dale then shows how the recommendation process peels through the five layers of resistance with the prospective client. He explains how to determine what needs to be addressed for each of the five layers of resistance, and how to give the prospect the confidence of achieving bottom line results. Dale goes through various specific applications (marketing, distribution, production, purchasing, engineering, etc.) as to how to approach the right questions to ask and how to ask them. The session concludes with role-playing between Dale and some of the audience to demonstrate the recommendation process, using actual examples.
JSA-15 - How Jonah Would have Helped Jonah
Presenter: The presenter is a bright, well composed, 13 year old who has taken the TOC Management Skills Workshop and applies the Thinking Processes to the Biblical story of Jonah. This short presentation outlines the first two parts of the story of Jonah's struggle in going to Nineveh and how he could have overcome his fears and doubts with the tools of the Thinking Processes. Brandon presents a negative branch and then shows how Jonah might have used the Pre-requisite Tree to overcome all of his obstacles in doing God's will. The presentation is a parallel to of some of the fears and obstacles facing today's youth.
JSA-16 - Using MSW to Get Results In the California Prison System
Presenter: Mr. Walsh has taken the Theory of Constraints and more specifically the power of the Management Skills Workshop to one of the toughest systems around, the prison system. The California Corrections facilities may receive negative press reviews, yet these are the same facilities that are considered to be among the best in the country. Most would agree there is still a need for vast improvements in the penal systems in this country. Tackling an institution with an ingrained lose-lose mentality with tools that work on the basis of a win-win solution, is no small task. With more 200,000 inmates in California alone and a staff of 4,000 the system is massive and expensive. Due to new legalities, the system is having to address a broadened scope of mental health issues for individual inmates, at an unprecedented rate. The effects are, of course, impacting their budgets significantly. By using a Communication Current Reality Tree, Mr. Walsh created sufficient buy-in for hosting an MSW among those managing a prison system and those managing the surrounding cities. The workshop lead to many significant changes in the way the inmates are handled, thus saving the state money while providing better conditions for the inmates. Dan shared some clouds that represent some of the major conflicts of the system, rehabilitate versus incarcerate, follow procedures strictly versus allow the rule to be applied flexibly. This presentation shoes how, by using the right tools, positive change can happen most anywhere.
JSA-17 - The Rydell Group and Cartiva Inc.
Presenters: The Rydell Group and Cartiva Inc. are no strangers to TOC and have been presenters at JUWs before. Rydell is a group of car dealers that has a vision of themselves that they do things so well that they are helpful (to their customers) They formed Cartiva to address a marketing constraint where over 50% of the potential "used car" buyer market won't shop at a "new car" dealership's used car lot. Also, their sales constraint was in their offering of used cars. They had a distribution problem of not enough of the right cars, and too many of the wrong cars in inventory. Their overall solution included stand-alone used car stores, a pull distribution system for popular vehicles, and a move from the cost world to the throughput world. This presentation includes some of the pitfalls and discoveries about using TOC in the workplace and how they are moving forward through POOGI. Jim Price talks about project management and how it has helped them in constructing a number of different dealership locations. In the case of Saturn of Apple Valley Forge, construction was delayed for three weeks due to heavy rains and they still managed to finish on time, on budget, and within specs. Project management has been such a success that they are now putting their contractors through the course. What Cartiva has learned both in using TOC for selling cars and in construction can be carried over to other industries. The cost world vs. throughput world thinking paradigm is relevant for anyone making decisions on pricing and selling.
JSA-18 - Imperial Oil
Presenters: Day to Day Thinking Processes Imperial Oil is one of Canada's largest companies employing around 7,000 people. In the Spring of 1996, twelve Jonahs were trained in the "upstream" part of the business centered around exploration efforts for natural gas and oil. A limited example of their work has resulted in wins not only for the company but the community of Calgary, Alberta as well. The TOC tools were applied to the recruitment of a United Way campaign called "Days of Caring" in which employers release workers for one day to participate in community activities. Using the MSW tools, Ms. Beda was able to surface the assumption that had lead to low employee participation in the past: many employees felt that top management would not approve of their taking the day off for volunteering. To prove this assumption false to the employees, a large portion of management signed up for volunteer day, and as a result, the number of participants in volunteer day doubled. The result was the best day of caring ever. Over 350 Imperial employees representing almost half the Calgary office turned out for the event. As a result the Imperial team was nominated for a local "Leaders in Business Award." The skills have also been applied to the contracting area of the business. Imperial Oil has numerous vendor contracts to manage and issues usually come up with regard to the scope of the contract and an unforeseen circumstance. An example was given of how, by using the Cloud and Negative Branch in a negotiation with a work clothing contractor, they were able to save Imperial Oil $100,000 and come up with a win/win solution with the contractor. Additionally, Mr. Wong, a statistician by training, was educated to deliver the Management Skills Workshop in order to help proliferate the day-to-day Thinking Processes within the organization. As a result, up to fifty people have already been involved in the short time the Workshop has been offered. Mr. Wong shared his experience of teaching the MSW and discussed some of the powerful results that his students have seen by using the tools. In addition, he spoke of how embracing the MSW has meant a complete corporate change for Imperial Oil.
JSA-19 - TOC for Education
Presenter: Kathy Suerken gave an update on the phenomenal growth in TOC for Education. More than 200 instructors from ten states, the United Kingdom, South Africa, and Australia have gone through the classes. Those to whom she has taught the MSW are now teaching the MSW to those in their schools and are building audiences of their own. Kathy also presents some moving testimonials from at-risk students at a middle school in California, who are using TOC to solve their own problems. Kathy also shares new applications of the MSW tools. Specifically a Peer Mediation approach created and utilized by a high school in Michigan as well as how the success of this program has brought them an invitation to South Africa to share their program, as well as the opportunity to use TOC with a Holocaust foundation in Holland to look at the causes of the Holocaust. TOC for Education is dedicated to bringing TOC and its tools to school children in grades K to 12.
JSA-20 - Commentary on Critical Chain
Presenter: What The Goal was for production, Critical Chain is for project management! Here Eli Goldratt shares the stories behind the writing of his latest book, Critical Chain. Two major plots are intertwined in this highly readable book - an attack on higher education and the logistics of Project Management. Higher education is facing a tremendous danger and the crash will come in less than ten years. Universities behave as if what they are teaching now, is useful because they are teaching it, regardless of reality. See how the "publish or perish" measurement is preventing instructors from contributing breakthrough ideas that give value to society. Ultimately the message of the book is that universities can teach things of value and thus abolish the dangers they are currently facing. One way is through project management the TOC way. Project management is a field that has been stagnating for many years. One of the problems is the overabundance of trying to optimize a project with mathematics. The essence of the TOC solution to project management is that the sum of the local optimums is not equal to the global benefits. The crux of the problem is looking at time estimations per step of operation. Even though great amounts of protection time is added throughout a project, it still isn't finished on time. Eli then discusses the two most common methods for wasting this safety. In closing, he speaks about the two project management environments - single project and multi-project. People seem to think that if the problem is big, the solution must be complicated; yet, they know that if it is so complicated, it is difficult to implement. TOC shows that this does not have to be true for project management.
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