In This Issue

AGI Employees Honored by their Customer
TOC World^® 2002 Recap; TOC World^® 2004 Dates Announced
AGI Welcomes New Partner
AGI to Participate in 5th Annual Asia SEPG^SM Conference
Boeing Article Highlights Use of State of the Art Technology in Project Management
TOC World^® 2002 Session Videos

Letter from the Editor
Steve Simpliciano

HELLO! How’ve you been? It’s been much too long time since we last talked. My dear friend and colleague Dr. Rex Draman (St. Edwards University) even called on me the other day just to check up on things. Next time it won’t be as long between newsletters. We hope you’re doing well.

In this issue, please join us in welcoming AGI’s newest partner, Dr. Eric De Smet. Eric is responsible for the Asia Pacific region and comes with a wealth of corporate experience. If you didn’t attend TOC World^® 2002, share in the dialogue between Dave Christ (F-22 Critical Chain Coordinator for Boeing) and Bob Mendenhall (CAE USA) as they discuss the use of TOC with EVMS. It’s 2:45 minutes long and accessible through Windows^® media player. Among the other articles you’ll also find links to handouts of presentations from TOC World^® 2002 to help you understand how these companies are applying TOC. Speaking of TOC World^®, we hope you’ve received our announcement about the next TOC World^® event. Those who attended the previous event rated it so high that we’re going back to the Mohegan Sun Conference and Convention Center.

Having been to my first Jonah’s Upgrade Workshop in 1993 and virtually every one since then, I must say that TOC World^® 2002 was unlike those previous. For the first time, those who attended heard presentations about how people are integrating TOC with other methodologies. Can you imagine? People are breaking clouds that say TOC is mutually exclusive of Lean, EVMS (Earned Value Management System), and Six Sigma. What they are finding is synergy between these methodologies, and the ability to really focus performance improvement. Personally, I can’t wait to hear about TOC and Balanced Scorecard and TOC with ERP. Any takers for the April TOC World^®? Okay. For those of you who were unable to attend, here’s some “sound bites” from TOC World^® 2002:

Bob Mendenhall of CAE USA (formerly Reflectone and BAE USA) shared their continuing journey with TOC. Bob also talked about their using TOC Project Management with Earned Value Management System (EVMS), and the ability to gain proper perspective on schedule and cost performance (see video clip). They also shared how their implementation of Critical Chain resulted in an SEI (Software Engineeing Institute) Level 2 assessment, and a CMMI (capability maturity model integration) pre-assessment of IV. Reg Begin, GM Worldwide Purchasing Manager of Supplier Development and Peter Ellis, Delphi Corporation Assistant Plant Manager, gave examples of how they used Drum-Buffer-Rope to improve the throughput of Lean operations for components of their GMT-800 line without capital investment (exploit before elevate – remember?). Gunze’s ELMA Division, a Japanese manufacturer of flat panel displays, gave the first-ever presentation by a Japanese company implementing TOC. Gunze adapted Drum-Buffer-Rope/Buffer Management into a TOC-based Supply Chain Management approach led by Japan Research Institute and AGI Asia Pacific’s Dr. Eric De Smet. We also heard from Ravi Gilani and his superb work with Indo Asian as they embarked on their TOC journey. Yossi Peleg of Rafael presented their implementation of TOC PM from a system of systems perspective on the Arrow weapons system in collaboration with Dr. Alex Klarman of AGI Israel. CM Products presented use of the TOC Thinking Processes for strategic planning processes and the integration of TOC logistical solutions to make the future reality, current reality. Teams from both the Air Force Operational Test and Evaluation Center and 412th Test Wing of the Air Force Flight Test Center shared their expansion from portfolio management through TOC PM to strategic planning processes (strategy, test planning, resource management, marketing), enterprise-wide. Marc Levin of Smiths Aerospace entertained us with their implementation of TOC PM through AGI’s QuickStart^SM in a proof of concept as Best Practice for F/A-22 suppliers. All the presentations were top drawer; but, the one presentation that stood out in my mind was by Dave Pickels, President of EnterpriseDNA. Remember Dave from Bal Seals Engineering? In 50 words or less (who’s counting?), Dave shared his experience with TOC “soup to nuts.” He has put TOC to the test in different environments from manufacturing to services in which their latest venture has resulted in their becoming received as the industry “game changer.”

WOW! Potential abound! Heady stuff, no? Yes, TOC World^® 2002 was, dare I say, “legendary.” Perhaps it was the location?

We invite you to check back soon at the AGI website for an upcoming White Paper by Dave Christ, F/A-22 Critical Chain Coordinator, entitled CCPM in Aircraft Assembly. Thanks, Dave!

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AGI Employees Honored by Their Customer

Goldratt Institute employees Kathleen M. Austin and Jacob Munson had their contributions formally recognized for the second year in a row on January 23, 2003, when the Manage Projects Process Transformation and Implementation Team received the Quarterly Team Award from the Project Management Directorate, 412th Test Wing, Edwards Air Force Base, California.

The 412th Test Wing at Edwards Air Force Base is responsible for performing developmental testing of new weapons systems before they are accepted for operational use by the Air Force. At present, a workforce of over 5000 people actively work on more than 350 projects.

Kathy and Jay have been on-site at Edwards since September 2001, supporting the implementation of TOC Project Management, in partnership with Realization Technologies (formally known as Speed to Market Engines, Inc.).

The Team successfully completed the yearlong customization phase of the contract in November 2002, with the implementation of TOC Project Management in two multi-project portfolios. Current efforts include the follow-on deployment to an additional six multi-project portfolios.

“We consider ourselves privileged to contribute to the readiness of the US Air Force," said Bill McClelland, the AGI Partner who leads the on-site team. "By enabling the 412th Test Wing at Edwards Air Force Base to deliver more projects faster with the same resources, we are contributing towards improved national and international security."

Further information regarding the implementation at Edwards is available in their TOC World^® 2002 video.

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TOC World^® 2002 Recap; TOC World^® 2004 Dates Announced
by Sylvia Ebbson & Robbin Inorio

TOC World^® 2002 was an extraordinary conference held at the Mohegan Sun in Uncasville, Connecticut. With attendees representing 15 countries and over 82 different companies and organizations, it was a wonderfully diverse crowd that spent an entertaining and educational four days together.

Daily raffles offered such prizes as two-day workshops and Jonah^SM Programs, along with Goal videos and Mohegan Sun and APICS bookstore merchandise. A surprise raffle early in the conference involved a little bit of musical chairs so to speak, and the winner was rewarded with a free upgrade to a beautiful suite at the hotel.

The conference opened with a traditional Mohegan welcome ceremony by Chief Two Dogs, and kicked off the conference unlike any other kick-off in AGI conference history. Attendees spent their days hearing clients such as General Motors and Smiths Aerospace present their hands-on TOC experiences and then headed off to numerous breakout sessions covering such topics as “Using TOC to Improve Cash Flow” and “Creating Market Strategy”.

Conference evenings were filled with several receptions, including a wonderfully well-received Wine Tasting that extended late into the evening. With the Mohegan Sun offering their world-renown casino, multiple shopping options, luxurious spa and numerous restaurants, there was something for everyone to enjoy.

Special thanks to our conference sponsors, Lilly Software and Speed to Market. Both sponsors offered informational sessions and had representatives available to answer any questions. The APICS bookstore was once again in attendance, and gained not only TOC World^® business, but some customers from the adjacent Certified Public Accountants conference who heard that TOC offered “something for accounting and finance”... little did they know!

Mohegan Sun proved to be a popular location, with many attendees suggesting we hold the next conference there, as well. So, we're excited to announce that TOC World^® 2004 will be held at Mohegan Sun. The preconference is scheduled for April 13, 2004, and the conference April 14-16. As information becomes available it will be posted at www.goldratt.com/tocworld2004.

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AGI Welcomes New Partner

In December 2002, AGI welcomed Dr. Eric De Smet as a new partner responsible for the Asia Pacific region.

Eric became associated with AGI in 1995. He has been helping organizations to improve their bottom line results through the application of TOC in its entirety, including strategic planning, marketing and sales, supply chain, project management, and day-to-day problem solving.

Prior to his association with AGI, Eric held CEO positions in various companies in Europe, USA and Asia, as well as Vice President positions in multi-national corporations.

He is residing in Singapore, from where he covers a significant part of the Asia Pacific Rim. As part of his role as partner, Eric works on building a solid platform in the Asia Pacific Rim to support TOC implementations which deliver bottom-line results and which are sustainable. He is a frequent speaker at international seminars, and CEO tea and lunch talks.

His customers include Japan Research Institute, Suntory Japan, Gunze Japan, Dell Asia Pacific, AMD Singapore, Flextronics International, 3M Malaysia, Seagate Singapore, Mattel Tools Malaysia, Astec Malaysia, Fairchild Malaysia, Fujitsu Electronics Malaysia, National University Hospital Singapore, Hitachi Chemicals Asia-Pacific, Medicap Thailand, and Strongpack Thailand.

For more information on offerings in the Asia Pacific Region, as well as materials in Japanese, please visit the Asia Pacific area of our website at www.goldratt.com/asiapacific.

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AGI to participate in 5th Annual Asia SEPG^SM Conference

AGI will be supporting and participating in the 5th Annual SEPG^SM Conference in Singapore. Dates for the conference are September 16 to 19. AGI participated in the conference held in Hyderabad, India from July 28 to August 2.

The Asia SEPG^SM Conference brings together practitioners and thought leaders from industry, academia and government for sharing and exchanging ideas and learning in the area of software process improvement.

The Asia SEPG^SM Conference will focus on software process improvement for successful business initiatives. It will present the current state of practice in process improvement around the SPI and demonstrate the results of SPI in achieving the business objectives.

Concept: To share best practices and papers across Asia and mutually benefit from the rich software experience of Asia academia, industry and government. Several high maturity organizations will get a chance to present their leadership to multiple audiences in the region.

Eric De Smet, AGI Partner in the Asia Pacific region, will deliver the Keynote Address, How to Maximize ROI of IT Projects Now and in the Future.

The address highlights how organizations have made significant investments in IT projects on the promise of "High ROI". However very few IT projects have delivered on this promise! Technology has improved tremendously, people are working harder and smarter than before, but despite the significant improvements made, "Why is it so difficult for IT projects to deliver the promised ROI"?

In the Keynote he will address:

• The "root cause(s)": finding an answer to "What to Change?"
• Theory of Constraints' (TOC's) "holistic approach": dealing with the "root cause(s)" by finding an answer to "To What to Change?"
• The resulting benefits for the organization as well as the project teams: A solid IT strategy which delivers the objectives set.
• AGI's TOC Success criteria: finding an answer to "How to Cause the Change?"

Dr. De Smet will also conduct a one-day TOC Project Management Workshop at the conference.

For more information, please visit www.qaiindia.com/SEPG_minisite/sepg2003/index.htm.

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Boeing Article Highlights Use of State of the Art Technology in Project Management

Boeing is using TOC Project Management to manage the F/A-22 program. This article is reprinted in its entirety with permission from The Boeing Company.

F/A-22 factory goes paperless
by Christine Lam

Four flat-screen TV monitors have been installed in key areas inside the F/A-22 Assembly Center in Seattle, Wash., as a way for managers and employees to share production status and information. With the push of a button on a coreless mouse, anyone can get information necessary to help them understand project performance relevant to team goals and objectives.

"The traditional method required people to print paper copies of performance data and post it for review," said George Masters, Industrial Engineering Business Management. "Positioning the plasma screens in specific areas brings information to the floor immediately and makes it highly visible."

Using an application developed for F/A-22 called Visual Integrated Queuing System, or VIQS, employees acquire quick-look data capability. The VIQS breaks down the aircraft into its three product parts: the aft, wing left and wing right. Employees can go to the screen, click on a metric and get information that is modeled after the stoplight chart. Another benefit is that managers can gather a team together and discuss relevant charts during impromptu meetings with particular emphasis to areas where more focus is needed.

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TOC World^® 2002 Session Videos

Following are descriptions of the session videos available from TOC World^® 2002, as well as links to the edited versions of the PDF handouts and to purchase the individual videos.

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.

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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%

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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^SM 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.

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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^SM 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.

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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

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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.”

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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.

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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.

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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.

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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.

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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.

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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

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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.

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