TOC for Supply Chain & Operations

Introduction
The TOC for Supply Chain and Operations Approach is for those individuals and organizations that have recognized the need to improve the way they manage their own organization as well as the supply chain and the way they deliver products to the chain. Furthermore, those individuals are ready to shift from the Cost World to the Throughput World.

If:

• your inventory is too low for many products
• your inventory is too high for other products
• your inventory is not available at the right places
• you do a lot of shipments between various locations to meet demand
• your lead times are too long
• you frequently have to reschedule
• your are not meeting your due dates

In the Throughput World, management efforts are directed toward the "weakest link" (the constraint), therefore improving the overall performance/strength of the "chain" (organization).

Objective
To get a better understanding how TOC constraint management enables a companies to achieve significant, sustainable, long-term improvements on its bottom-line (40-50% improvements are common).

Description
Through the use of the TOC Thinking Processes, open discussion, interactive computer-simulations and interactive exercises, participants gain an in-depth understanding of the subject matter.

The in-depth understanding of the subject matter is achieved through taking the participants through six steps.

1. Consensus on the core problem.
   • Existing problems are analyzed and the core problem is identified
2. Painting a direction for a generic solution
   • The basic direction of a solution is examined
3. Agreement that the solution overcomes the core problem
   • Major issues related to the solution are addressed
4. Elimination of any potential negative side effects introduced by the solution
5. Developing of a generic solution
6. Discussion on how to implement the generic solution into participants specific environment.
   • How to implement this solution and how to overcome "resistance to change" are discussed as well.

Through extensive and interactive discussions and computer simulations, participants discover:

• The real factors that inhibit the effective management of operations and supply chains;
• The common causes of these real factors;
• A simple, logical, generic solution to production problems;
• How to customize the generic solution to a specific environment;
• How to overcome obstacles blocking implementation.

The workshop:

• Focuses on the management of operations and supply chain
• Reviews implications of demand driven environment versus forecast environment
• Explores "push" system versus "pull" system.
• Explores how TOC can get the most out of past and present Lean and 6-Sigma improvement programs.
• Examines issues and viewpoints of the producer, the distributor, the customer, the transportation services, the warehouse managers, and the product itself

The TOC solution for Operations and Supply Chain involves finding a way to quickly stabilize the system. Focus is then placed on reconfiguration of the existing system into a TOC-based system which provides for the ability to effectively manage variability and uncertainty.