Video Presentations

Videos available from TOC World^® 2002 at the Mohegan Sun in Uncasville, CT.

JMS-1 - CAE USA

Presenter:
Bob Mendenhall

CAE has presented its experiences implementing TOC Project Management (TOC PM) at previous TOC World^® conferences as Reflectone and BAE Systems.

Continuing Engagement for Visible Success

CAE is a global leader in providing advanced simulation, controls equipment and integrated training solutions in the civil aviation, military and marine markets. Their annual revenues in 2001 were US$650 million.

TOC improvement efforts began in 1998 and continue today. In this presentation, Mr. Mendenhall describes the problems the organization faced prior to TOC, the challenges and necessary steps of continuing the improvement process through two leadership changes, and the unprecedented sustained success achieved with TOC PM.

Highlights of CAE’s results include cycle time reductions of two to four months (and improving), and $37 million increase in the number of profitable programs and $4+ million in savings in the first year alone.

Also discussed is applying Earned Value in an existing TOC PM environment.

JMS-2 - Gunze

Presenter:
Mr. Hisamichi, Executive Senior Consultant, The Japan Research Institute Research and Consulting Division

Development of new business systems to deliver on the organizational goals.

The short term uncertainty which exists in an organization’s external environment can cause an organization to re-define its long term goals. This presentation describes how Gunze used the TOC internal Supply Chain solution to re-align its business systems to meet the original 2004 goals by the third quarter of 2002!

Gunze is a top five company of apparel and fabrics in Japan. ELMA is the electronics division producing transparent touch panels (TTP) for major customers like Sony Sharp, Panasonic, NEC, Motorola, Palm.

ELMA found its market position threatened by products made in Korea and China, and needed to come up with a strategy to quickly strengthen its market position. The company developed new business systems based on the TOC Internal Supply Chain model to help its three plants in Japan to deliver on new aggressive goals set by corporate. AGI, together with its strategic business partner JRI, started the journey in April after receiving buy-in from Corporate. Based on AGI’s implementation process, the three plants were synchronized and ready to go live by June 30th. During July all unwanted products were purged out of the system and in August the new system was validated to be stable.

Bottom line results included:

• meeting new aggressive goals by September 2002 (originally planned for end 2004)
• Lead-time (three plants combined) reduced from 21 days to four days
• Inventory reduction
  • Plant-1: 80%
  • Plant-2 & 3: 80%
• Due date performance improved by 12%

JMS-3 - Chicago Metallic/CM Packaging (CMP)

Presenters:
Michael Jenkins, V.P. Engineering
Brent Bozile, V.P. Operations

Strategic & Tactical Planning Using TP

CMP is a 104 year old company with 450 employees and $75 million in sales. Its processes are primarily metal stamping, but also include thermoformed plastics. CMP serves the commercial bakeware, retail bakeware, food service bakeware and food packaging markets.

The company’s interest in TOC began in the late 1980s, leading to formal training in Drum-Buffer-Rope (DBR), Distribution and the TOC Thinking Processes (TP) in 1991. Although benefits were immediately realized, over the years, CMP failed to exploit the full power of TOC and the TP. In 2000, CMP’s president authorized a new round of TOC training.

A team of managers, including CMP’s president, attended a Jonah Program^®; top management attended a TOC Strategic Planning session. The need for DBR and Replenishment was recognized and the implementation plan was created. Several employees then attended the Supply Chain Expert Training Program. Key production staff attended the TOC Supply Chain Workshop.

When CMP presented at TOC World^® 2002, their TOC implementation had been in full day-to-day swing just two months. Results reported at that stage included a decrease in finished goods inventory of $400,000, increase in productivity, reduction of $900,000 in OE, and the new-found flexibility to add or move up large orders without negatively impacting the overall schedule.

JMS-4 - Enterprise DNA

Presenter:
Dave Pickels, President

Creating an Organization as a Market Offer

The book It’s Not Luck certainly sparked a lot of interest in the use of the TOC Thinking Processes to create UnRefusable Offers to the market. That makes sense considering the number of organizations with market constraints and the need to address them. But is it possible to use TOC not just to create an offer, but a whole new company? Dave Pickels and Peter Balsells would no doubt answer “yes”.

As a little background, both are seasoned TOC veterans. They continue to really apply the skills they learned in the AGI Jonah Program^® and have achieved incredible results with the TOC Logistical Solutions during their time with Bal Seal Engineering. So where do you go from there?

That’s the subject of Dave’s presentation. Dave and Peter have found a market in need of a TOC-based solution – and are building a company around providing it. The story begins with a little history of where they’ve been, moves on to how the idea developed and then to how they are developing the idea. Their business is becoming a Future Reality Tree and they are being recognized as the “industry game changing solution”.

If you’re interested in seeing how TOC is more than just a “production thing”, this tape may be for you.

JMS-5 - Air Force Flight Test Center (AFFTC) 412th Test Wing

Presenters:
Kelly Adams, Resource Management Directorate, USAF
Dennis Hines, Director, Project Management Directorate, USAF
Donald Johnson, Chief, Process Improvement Division, USAF

Project Management with the Right Stuff

The AFFTC at Edwards Air Force Base, California, is tasked to support the Air Force Materiel Command (AFMC) mission by conducting and supporting research, test and evaluation of both manned and unmanned aerospace systems. The Edwards Flight Test Range is located in the western Mojave Desert.

Enter TOC Project Management! Edwards' leadership understood that introducing a new way of doing business to their workforce would be a significant challenge. After carefully researching all of their alternatives, their final solution was to move to TOC PM. In the middle of 2001, they entered into a multi-year on-site support contract with AGI, using Concerto software from Realization Technologies (formally known as Speed to Market Engines, Inc.).

After training a cadre of internal experts and thoroughly testing the methodology and supporting software, the team proceeded to conduct two parallel multi-project implementations in two of their test organizations.

This presentation discusses the path they took to implement TOC PM in each of two portfolios. Reviewed are difficulties encountered, lessons learned from those experiences and the initial successes that led them to move on the to the next major phase in 2003.

2 tape set

JMS-6 - Smiths Aerospace

Presenter:
Marc Levin

Quick Start to Success

At TOC World^® 2001, the F-22 SPO, Lockheed Martin Aero (LM Aero) and Boeing presented the tremendous results realized using TOC Project Management (TOC PM). At the end of that presentation they said their next step was to introduce TOC PM to their supply base. Smiths Aerospace is that “next step.”

Smiths Aerospace is part of a transatlantic company focused on specialist engineering and manufacturing for aerospace, medical, sealing solutions and industrial applications. In FY2002 Smiths Aerospace had $1.96 billion in sales.

The objective of this initiative at Smiths was to evaluate a process of rapid deployment of TOC PM to suppliers from training to execution. It was to be used in a multi-project environment to prove TOC PM methodology to be Best Practice for F-22 suppliers.

This presentation details the process the organization went through, stressing the importance of training, management support, and overcoming existing paradigms.

The speaker defines success as staying within the schedule, on budget and meeting clients’ specifications, and he ultimately reports on the success Smiths enjoyed its first time out using TOC PM on two “very important programs.”

JMS-7 - Rafael

Presenter:
Yossi Peleg

Multi Project Management, Field Tested, Tried, and True

Have you found yourself wondering if TOC Project Management (TOC PM) can be applied in a highly technologically advanced filed? Can it work in an environment that combines research and development and manufacturing? Can it work with over 1000 employees? Take a look at what is actually in place at Rafael thanks to the combined work of Alex Klarmen of AGI and Yossi Peleg of Rafael.

Rafael has been involved in the development, production, and supply of defense capability to Israel and the rest of the world for over 50 years. For the last 40 years they have been Number 1 in their class. YET, this was not good enough to meet the growing needs of their customers. There was a clear need to be better. TOC PM (or CCPM) was clearly the method of choice and the results have demonstrated the wisdom of that decision.

Rafael is a multi project environment with significant System of Systems implications in their project portfolios. Each System has multiple sub-systems. Each sub-system is considered to be a project. Each project has specific goals, objectives, risk, budget, well-defined work to be done, schedules, and milestones. All of the projects within a system are tied together through aspects of the overall system program and all the system programs are tied together as aspects of the System of Systems.

See how Rafael has effectively used Critical Chain project planning, execution, and buffer management within and between projects to manage their projects, significantly enhance their capacity to meet demand, and keep customer satisfaction high.

JMS-8 - General Motors (GM) and Delphi Corporation

Presenters:
Reg Begin
Manager, Supplier Development, GM Worldwide Purchasing

Peter Ellis
Assistant Plant Manager, Delphi Corporation

GM produces 13.4 million vehicles annually. Last year the company purchased $129 billion in direct and indirect material. Seventy-six percent of GM’s suppliers are in North America, providing 98% of the material GM uses.

The automotive industry is very competitive, with demands for price cuts at new highs. In response, purchasing at GM is rapidly moving from a regional to a global focus – moving away from non-aggressive sourcing to sourcing in low-cost countries. This is key for North American manufacturers, as they have a long way to go to remain competitive in the long run.

It is recognized that if GM is to survive, it needs to be profitable – and so does its supplier base. This must be worked on jointly. An increasingly important strategic initiative for GM is broadening the knowledge on constraints management to its business partners through education and joint initiatives.

GM is now using TOC in manufacturing systems design. The company is working with suppliers as soon as contracts are awarded – several years before production begins - to determine how the system is going to run.

A key supplier working closely with GM is its former subsidiary, Delphi Corporation, the largest auto parts supplier in the world. Delphi has 179 manufacturing locations, employing 192,000 people. It has $29 billion in annual sales, of which $15 billion are to GM.

The arguments between GM and Delphi usually occur over cost rather than delivery or quality. The relationship between GM and Delphi has at times been challenging. The presenters have always been able to work successfully, though, because they always stayed focused on what is important – the bottom line.

This presentation also highlights several examples of the application of TOC to improve various operations at GM and Delphi, including one cell which realized a 65.8% increase in throughput while cutting operations from seven days per week to five.

JMS-9 - Japan Research Institute (JRI)

Presenter:
Mr. Hisamichi, Executive Senior Consultant, The Japan Research Institute Research and Consulting Division

Dr. Eric De Smet, Partner, AGI (responsible for Asia Pacific Region)

Developing a Corporate Strategy

Often, organizations are not achieving their desired bottom line return from engaging external consulting firms. This presentation describes how JRI, a consulting company, used TOC to develop corporate strategy and tactics that allow them to achieve a competitive advantage in the Japanese market by exceeding customer expectations for bottom line return.

Japan Research Institute (JRI) is one of the top five think-tanks in Japan, and a subsidiary of Sumitomo Mitsui Bank the second largest bank in Japan. Its consulting and research division provides services in the field of Business Management consulting, SCM consulting and System Integration.

Business management and SCM consulting is a highly competitive market in Japan, and JRI was facing significant challenges to meet its goals. The SCM consulting division had been exposed to TOC and was looking to offer TOC-based solutions to create a competitive advantage.

After getting buy-in from the President of the Consulting and System Integration division, AGI facilitated the development of the Business Management Strategy as well as the marketing and functional strategies to deliver TOC-based solutions to the market within a short period of time.

Key elements included:

• the development of the TOC knowledge base,
• establishing a strategic partnership between JRI and AGI to create the ability to immediately deliver TOC-based solutions to the market
• establishing strategic partnership with key TOC based software providers

Bottom line results included:

• Typical system analysis which previously took six months is now delivered within one month
• JRI delivered complete SCM solution including system integration components
• JRI delivered successful Internal Supply Chain Solution beating customer expectations
• Already secured three more TOC-based solutions to be delivered within next two quarters.

JMS-10 - Indo Asian Fusegar Limited

Presenter:
Ravi Gilani, AGI Associate, Time ‘n’ Cash presenting on behalf of Vivek Mahendru of Indo Asian

Located in India, Indo Asian Fusegar Limited has been manufacturing electrical and lighting products since 1958. By September 2001, the company had hit bottom. Their on-time-in-full delivery performance was less than 10%. Payroll was a month behind. Payables were more than 90 days past due and suppliers were questioning whether or not to continue supplying to the company. There was a severe cash shortage. Sales were declining due to poor performance. And for the year 2000-2001, the company lost money – for the first time in 42 years.

In September 2001 Indo Asian was introduced to TOC. Prior to this they perceived their problem to be in the market – not enough customers. After their initial exposure to TOC they realized that timely order fulfillment was the key to their success. They agreed to a pilot TOC implementation in their plants. The focus changed from “production” – number of items produced – to “dispatch” – numbers of orders executed in full. The plants were no longer allowed to dispatch incomplete orders. Marketing was now only allowed to pass on actual orders to the plant – not orders based on forecast.

The company also implemented an unrefuseable offer with a key customer that resulted in a favorable payment arrangement. Indo Asian was being paid in full on delivery of orders (within six days of the order) rather than after the usual 60+ days. In return, Indo Asian reduced their prices to this customer, and this customer only, by 50%. This resulted in significantly improved cash flows.

Today, Indo Asian has increased its on-time-in-full deliveries from less than 10% to 84%. Most orders are delivered within ten days. The company is no longer losing sales due to shortages in raw materials, and in fact has increased sales by 18%. Employees have renewed hope, everyone is happy with the direction of the company, and profits again are being realized.

JMS-11 - Air Force Operational Test and Evaluation Center (AFOTEC)

Presenters:
Col. Michael Holmes
Major Steve Benning, Chief, Strategic Planning Division
Mari Hart, Strategic Planner
Maj. Harlan Higginbotham, Deputy Dir of Operations
Jim Lozito, Senior Strategic Planner
Frank McIntire, Startegic Planner
Orville Porritt, Senior Project Management Advisor

AFOTEC Successes Through Operational TOC

AFOTEC returns once again to TOC World^® to tell their on-going story. Hear how TOC has spread throughout their organization. Initially, TOC was applied to their project and resource management processes. Now it is being applied on an enterprise wide basis. Major General Ken Peck, a commander fully committed to strong strategic planning and implementation, agreed to utilize TOC Strategic Planning as the process for running AFOTEC's annual Senior Leadership Executive Council offsites. Since then these processes for strategic planning have been applied to a wide variety of functions from marketing AFOTEC to individual business units (Detachment and Directorate) long range planning. See what tools AFOTEC is utilizing and how diverse their application of TOC has become.

JMS-12 - CAE USA Case Study

Presenter:

What does it take to successfully implement a significant change within the organization both culturally and logistically in Project Management? This case study takes you through AGI's proven Six Phase Approach to Successfully Implement TOC PM and through the specifics and lessons learned as applied to the roll out at CAE USA.

2 tape set

JMS-13 - Suntory

Presenters:
Mr. Yoshida, Executive Senior Consultant, The Japan Research Institute Research and Consulting Division

Dr. Eric De Smet, Partner, AGI (responsible for Asia Pacific Region)

Developing and Integrating Business Strategy

Aligning an organization’s operations with its business strategy is key to ensuring that the organization delivers on its commitments. Suntory was able to successfully align its Corporate Information Systems division with the businesses it served to deliver beyond its customers expectations, ahead of time and within budget. This presentation describes the TOC process Suntory’s corporate information system division used to meet its objective.

Suntory, a ¥1,434 billion company, is Japan's leading producer and distributor of alcohol and non-alcohol beverages. The Corporate Information System division provides scalable information systems to support the over 170 companies which are part of the Suntory group.

The CIS division was facing pressure to deliver more new systems with increased complexity within shorter time-frames. The amount of rework during the design stage of the new systems made it very difficult to meet ever growing demand from corporate customers

After getting buy-in from the CIO, AGI facilitated the development of the Business Management Strategy to satisfy the corporate customers' needs.

Key elements included:

• Exposure to TOC applications for constraint-specific solutions
• Demonstration of proof of concept of the New Business Management Strategy with one corporate customer (Flower Division)
  • Development of Business Management Strategy to achieve short- and long-term goals
  • Development of Functional Strategy based on the TOC External Supply Chain Solution

• Business Management Strategy and functional strategies provided the platform for developing the Information Systems
• Information Systems were delivered without rework, on time and within budget.