Inside this Special Edition TOC WORLD® 2002 MANDATORY FOR ALL
SUPPLY CHAIN MANAGERS
who are interested in rapid, reliable flow

Supply Chains are fundamentally systems of interdependencies that experience variability. TOC logistical solutions are directed at improving such systems, and have been successfully implemented in organizations around the world and across industries.

Every supply chain is made up of links: some links tend to convert raw materials into something of greater value (hopefully), and other links tend to store and move materials through distribution channels.

Those who are more involved with “conversion” links see a set of problems more associated with Production:

  • Production lead times are too long.
  • There is too much expediting.
  • Overtime is too high.
  • Vendors are unreliable.
  • Production plans are short-lived.
  • It’s difficult to respond to urgent orders.
  • We miss too many due dates.

Those who are involved with the “store and move” links commonly have complaints that are more closely tied to Distribution:

  • There is too much inventory.
  • We are short (or out) of the things we need.
  • Too many orders are shipped incomplete.
  • Inter-company shipment costs are too high.
  • There are too many returned goods.
  • Obsolete inventory is above plan.
  • We miss too many sales.

Of course, there are “problem overlaps”. For instance, a complaint of unreliable vendors in a Production link is basically the equivalent of being short (or out) of the things we need in a Distribution link.

If you recognize any of the above problems, TOC World® 2002 is for you. Here are examples from some companies applying TOC for Supply Chain:

Brush Engineered Materials, Inc. - Implementation of Drum-Buffer-Rope/Buffer Management and Replenishment helped Brush Wellman's non-strip businesses to increase sales and operating profits, while significantly improving customer on-time delivery.

General Motors North America - TOC concepts are the foundation of the current process that they are using to improve throughput in existing automotive assembly plants.

Robor Stewarts & Lloyds - Reduced inventory to 66 percent of the planned maximum, with a further reduction in the pipeline; reducing "out of stocks" from 12 percent to 4 percent; creating a sales force that improves their sales per day by 20 percent.

The Rydell Group - a new and innovative approach to selling used cars. They were able to customize it to fit each particular dealership's needs. The system is designed to optimize space according to a particular dealership's patterns of sales.

PG Bell – A cyclical, custom manufacturing company where product mix changes constantly and most orders has a 2-4 month lead-time with two weeks on some orders. But delivery must be at the time desired although construction is often delayed or the schedule changes. Delivery time went from eight weeks to four; sales went up 57%, profits went up 95%.

Bal Seals Engineering - Extra capacity surfaced everywhere except at the constraint. Another almost-immediate effect was the reduction of lead-time from six weeks to eight days. On-time shipments improved to 97%. For a time, customers couldn't believe the performance. Even after receiving shipments per the shortened lead times, many questioned whether Bal Seal could keep it up. Time has proven the permanence of the improvements.

How are companies able to achieve “these kinds of results?” Experience and learn AGI’s proven approach to supply chain management, distribution, and production with TOC. If results are important to you, don’t miss this year’s TOC World®.


TOC World® 2002 Supply Chain Management Presentations to Include...

Register for TOC World 2002GUNZE
Indo ASIAN
Enterprise DNA
GM and Delphi


TOC World® 2002 Supply Chain Management Breakout Sessions

Introduction to TOC Supply Chain (SC)
Facilitated by Hugh Cole and Dee Jacob
This high level overview of the TOC SC solution covers the individual and integrated aspects of TOC Market Demand-PullSM (replenishment) and Drum-Buffer-Rope. Whether you supply others, work in a production type environment or manage inventory across an organization and its distribution channels, this session is for you.

TOC SC, Lean and Six-Sigma: Mutually Exclusive or Synergistic?
Facilitated by Donn Novotny
Many, if not most, organizations have significant investments in both time and money on improvement initiatives directed toward bottom-line results. Is it possible to integrate such efforts? Come to this session and how TOC SC can integrate and improve the benefits of your Lean and Six Sigma initiatives.

TOC SC System Design Tool: Buffer Modeling
Facilitated by Hugh Cole
The best-designed supply chain system won’t improve anyone’s bottom-line unless it’s implemented. This session will focus on the use of off-the-shelf software to develop system models and analyze buffer response to real sales data. It sure helps buy-in!

TOC SC: A Six-Phase Implementation Case Study
Facilitated by Gerry Hoffman
The AGI Six-Phase Implementation Process is a natural progression of steps to follow to create system change. Learn how this process is being used to implement the TOC SC Solution across a national distribution network.

TOC SC in a Non-Job Shop Environment
Facilitated by Dee Jacob
Anyone who has read The Goal or The Race appreciates the elegance of the TOC Production Solution – except when they are dealing with process and semi-continuous production type systems. This session will take you through how the powerful solutions of TOC can create significant results in these types of environments.

TOC PM and TOC SC – How to integrate when you have both! (Also in TOC Project Management Track)
Facilitated by Hugh Cole and Dee Jacob
Many production environments require engineering to support them. Many project environments require fabrication or production to feed them. How do we resolve the conflict when both solutions expect the other to be subordinate? This session is essential to understand how to integrate these two powerful solutions without compromise.

TOC SC – The Problem Is...?
Facilitated by Hugh Cole
A panel of implementers will answer how they addressed common implementation problems with implementing Drum-Buffer-Rope and Market Demand-PullSM (replenishment). They will then answer your additional questions. This session is a must for those who are implementing or considering implementing TOC SC.


Announcing AGI Certification Preparation at TOC World® 2002

AGI has a full offering to create Experts and Masters in TOC Supply Chain Management (SC). The first level is called Technical Experts. To become certified as a Technical Expert one must demonstrate practical and written expertise in the technical aspects of the appropriate solution.

During TOC World®, AGI will be offering a Certification Preparation Track for TOC SC. This track consists of three sections, open only to those who have taken Technical Training in the subject and have pre-registered. These tracks also consist of selected open Breakout Sessions. The combination of sessions will prepare the participant to utilize the Technical Solutions better in their organizations and to be prepared to pass the written portion of the Certification Process.

For more information, please contact Robbin Inorio or Sylvia Ebbson at +1.203.624.9026 or by email at info@goldratt.com.


If you are unable to attend TOC World® 2002, but are interested in TOC Supply Chain Management...

Introduction to TOC Supply Chain Management
One-Day Workshop

Some of the best products and services ever invented have never lived up to their full potential for a very common reason: the organization’s inability to manage its supply chain(s) effectively.

Whether organizations are small or large; whether their business is manufacturing, service, or distribution; or whether the most critical supply chains are internal or external; they are difficult to manage because of one frequently overlooked fact. That is, the fact that the logistical operating environment is governed by statistical fluctuations of dependent events.

Introduction to TOC Supply Chain Management lays out the fundamentals and practicalities of implementing the common sense approaches in Dr. Goldratt's books in an entertaining and interactive way. This one day, high-level program exposes the underlying root conflict that is responsible for many of the problems of supply chains (both internal and external).

The participants are taken systematically through the direction of the integrated solutions (often referred to as Drum-Buffer-Rope and Buffer Management, and Market Demand-PullSM or Replenishment). Through the use of a case study approach, these solutions are easily understood.

Agenda

  1. Definition of Supply Chain
  2. What to Change
    1. The Problems
    2. Could the conflict between Local vs. Global Performance be at the root of these problems?
    3. Case Study One – Understanding the Conflict
    4. Case Study Two – Understanding the Conflict
    5. Case Study Three – Understanding the Conflict
    6. The coping mechanisms to the conflict
    7. The effects of other causes
  3. To What to Change
    1. Breaking the Conflict
    2. Aligning the Policies, Measures and Behaviors
    3. The Solution: Market Demand-Pull(SM)
    4. Checking the solution - Case Study One
    5. The Five Focusing Steps
    6. Applying the Five Focusing Steps to Continuous Flow Operations
    7. Applying the Five focusing Steps to a Plant Environment – Drum Buffer Rope
  4. How to Cause the Change
    1. Resistance to Change
    2. How to go about implementing
  5. Review of actual results from Case Study One, Two and Three

Price is $495 per person.

Dedicated sessions can be conducted at your site. Attendees can register for Introduction to TOC Supply Chain AND Introduction to TOC Production OR Introduction to TOC Supply Chain AND Introduction to Market Demand-PullSM for $1295 per person. The special rate of $1995 per person is available for those who want to sign up for all three programs.

For more information or to register for this program, please call our Client Relations Department at +1-203-624-9026, or email us at info@goldratt.com.

Dates
Location
Dec 2
New Haven, CT
Feb 10, 2003
New Haven, CT
Apr 7, 2003
New Haven, CT
Jun 16, 2003
New Haven, CT
Aug 18, 2003
New Haven, CT
Oct 20, 2003
New Haven, CT
Dec 15, 2003
New Haven, CT


Supply Chain Management Expert Training Program

The Supply Chain Management Expert Training Program consists of four discrete parts. Part One is a two-week technical program designed for those who are to become Supply Chain Implementation Experts, Supply Chain Logistical Experts, and Internal Software Experts. Parts Two and Three, usually taken together, are required for Implementation Expert training. Part Four is conducted outside of the classroom environment, providing mentoring in conjunction with an actual implementation.

Part One – The Technical Solution
TOC Supply Chain Management consists of five key elements: production planning, production scheduling, resource behaviors, production control and decision impact visibility. These elements are implemented with the necessary logistical and cultural changes to improve reliability and reduce production lead times through more effective management of resources.

This training program provides attendees with the necessary technical knowledge to implement the logistical aspects of Drum-Buffer-Rope/Buffer Management and Replenishment in a single- or multi-plant environment.

Participants learn how to identify drum candidates, create Drum-Buffer-Rope and Replenishment schedules by hand, understand the logic of synchronization and how it affects individual resource and material release schedules, identify scheduling priorities, batching rules and manage by buffers.

Participants are introduced to key elements of the implementation process and the operational roles of people within the organization: senior managers, plant managers, production managers, resources, Supply Chain Implementation Experts, Supply Chain Logistical Experts, and Internal Software Experts.

As noted above this two-week program is for those who will fulfill the role of Implementation Experts, Logistics Experts and/or Internal Software Experts within the organization. It is taught several times a year as a program open to all companies and is frequently scheduled as a dedicated program for companies with a sufficient number of attendees.

Part Two – Customizing the Solution
Just as part one of the Expert Training Program is designed to enable people to become leaders in the logistical elements of the solution, parts two and three combine to enable people to become leaders in the cultural elements of the solution.

Whereas in part one, participants learn the mechanics of the solution, in part two, they construct the cause-effect logic that demonstrates why the solution works at all. This creates a much deeper level of understanding and provides a solid basis for customization – for dealing effectively with elements that must be addressed to tailor the generic solution to the specific needs of their organization and for dealing with the many potential obstacles to successful implementation. TOC tools for accomplishing lasting change are taught and used.

In this week, participants learn parts of the TOC Thinking Processes as well as how to use those tools to address day-to-day problems. It is required for Implementation Expert candidates, but selected Logistical Expert and Internal Software Expert candidates are frequently encouraged to attend.

Part Three – Selling the Solution
Part three of the Expert Training Program focuses on the elements of how to secure the buy-in of key stakeholders within the organization. Participants learn how to construct a logical, cause-effect analysis of the problems being experienced by a person whose buy-in is required. This analysis is then used as the basis for deriving a “win-win” proposal that shows how both the stakeholder and the organization will benefit from the stakeholder’s support of the new way of managing the supply chain. Relevant elements of this proposal are then incorporated into the logical analysis from part two, providing further specific tailoring of the solution to the organization’s unique needs.

The implementation process is learned in greater detail, focusing on how all of the elements of the solution logically combine to cause effective and lasting change within an organization. As important reinforcement, participants build a generic project network for implementing the Supply Chain System within an organization. Further focus on obtaining buy-in through written and oral proposals serves to strengthen what participants have learned.

Finally, participants are instructed in the use of AGI training materials that have been developed and tailored to address the unique needs of each key constituency (senior managers, functional/resource managers, and resources) within their organization.

Part Four – Gaining Experience
The final stage of the Expert Training Program is participation in an actual implementation along side AGI experts who initially lead, and then systematically move into a mentor role, coaching the newly trained expert in the facilitation process. At the conclusion of Part Four, the Expert training is complete since it is expected that the Expert is, by then, fully capable of leading a major implementation effort on his or her own.

For further information about or to register for the Supply Chain Expert Training Program, please contact our Client Services Department at 1-800-394-GOAL or 1-203-624-9026 or email Sylvia Ebbson or Robbin Inorio.

Dates
Location
Sep 30-Oct 4 (wk 1)
Oct 7-11 (wk 2)
Oct 28-Nov 1 (wk 3)
Nov 18-22 (wk 4)
New Haven, CT
Mar 10-14, 2003 (wk 1)
Mar 17-21 (wk 2)
Apr 7-11 (wk 3)
Apr 28-May 2 (wk 4)
New Haven, CT
Aug 11-15, 2003 (wk 1)
Aug 18-22 (wk 2)
Sep 8-12 (wk 3)
Sep 22-26 (wk 4)
New Haven, CT


Mohegan Sun logoTOC World® 2002 is being held at the Mohegan Sun Hotel and Conference Center in Connecticut from November 4 to 7.

For more information on TOC World® 2002 or to register, please visit www.goldratt.com/tocworld2002.


The TOC Times
Published by:
AGI, 442 Orange Street, New Haven, CT 06511, USA
+1.203.624.9026     agi@goldratt.com

Editor-in-Chief ..... Steve Simpliciano
Content & Copy Editor ..... Robbin Inorio
Content & Copy Editor ..... Sylvia Ebbson
Technical Editor ..... Jennifer Foley

All contributions to TOC Times should be sent to
AGI, 442 Orange Street, New Haven, CT 06511, USA or agi@goldratt.com. Reproductions of articles contained in TOC Times is prohibited unless prior written permission is obtained from the editor-in-chief.

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Copyright ©2002, Avraham Y. Goldratt Institute. All Rights Reserved.

TOC World® is a Registered Service Mark of The Goldratt Institute
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TOC ExpertSM is a Service Mark of The Goldratt Institute
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