BREAKOUT SESSIONS

TRR TO INVENTORY: DESIGNING THE LINKAGE

Wednesday, March 29, 11:00-12:30pm
Presenters: Hugh Cole, Partner, Avraham Y. Goldratt Institute (AGI) and VP Customer Service & Training, North America Group, AGI
David Bergland, Advisory TOC Consultant, North America Group, Avraham Y. Goldratt Institute, LLP

Help! Multiple Products, Multiple Resources & Have Everything In Stock (But Not TOO Much...) How can anyone do that?

We all know that if the time that a customer is willing to wait for product is shorter than the time it takes us to produce it – we need to build inventory. We also know that inventory ties up cash and, with the exception of fine wine, usually doesn’t improve with age. In fact, if we build too much we risk obsolescence and a host of other bad problems.

On the other hand, we do need to build and hold ‘enough’ units because to run out means lost sales and unhappy customers. This situation would be challenging enough if there were only one product involved that was produced by one process. The fact that the norm is multiple end items produced by multiple resources complicates the picture just a “wee bit.” No wonder the search for the ultimate crystal ball continues. There is an application of TOC that addresses this problem, but some may not be aware of some of the intricacies involved in such a design. For instance, the process of calculating reliable replenishment times across multiple products with common routings. And handling those cases involving different end products created thorough different routings.

In this session, we will demonstrate a straight forward design process which can be used to determine the appropriate inventory levels required to protect your customers – even when the process of supply appears to be complex.

THEORY OF CONSTRAINTS PROJECT MANAGEMENT (TOC PM) - EXPERIENCE IT YOURSELF

Wednesday, March 29, 11:00-12:30pm (part 1) and 3:30-5:00pm (part 2)
Presenters: Bob Jacob, Partner, Avraham Y. Goldratt Institute and Executive TOC Consultant, North America Group (AGI)
(Double Session)

This interactive exercise provides a quick overview of the five critical elements of TOC PM (Planning, Critical Chain Scheduling, Synchronization, Project Control and Visibility; and Behavior) followed by a hands on experience of what it’s like to manage a project based on TOC. This exercise allows the participants to experience the roles of Senior Manager, Resource Manager and Project Manager in the World of TOC PM. It enables the participant to understand more of the concepts behind TOC Project Management and experience its power while managing a simulated project. The result is an eye opening experience of a smooth running multi-project environment – in spite of the chaos and variability that impacts all project environments.

USING THE FRT FOR VISION & ALIGNMENT

Wednesday, March 29, 11:00-12:30pm
Presenter: Bill McClelland, Partner, Avraham Y. Goldratt Institute (AGI) and President of Operations, North America Group, AGI
Dee Jacob, Partner, Avraham Y. Goldratt Institute (AGI) and VP Finance & Administration, North America Group, AGI

TOC THINKING PROCESSES - MORE OF THE RIGHT STUFF AT EDWARDS AIR FORCE BASE

Wednesday, March 29, 3:30-5:00pm
Presenters: Jim Briggs, Deployment Expert, Global Vigilance Combined Test Force
Carl Dane, Director of Projects

The 412th Test Wing selected the Theory Of Constraints approach to standardize project management in targeted Combined Test Forces over four years ago. Since then the TOC Thinking Processes have been used in many areas and applications beyond that of critical chain project management. Tools learned through Deployment Expert, Master of Organizational Alignment and Jonah training programs have been spread successfully to many parts of the organization.

Leadership change over is common. New commanders and division leads roll in and out on a two year cycle. In the last five years the Test Wing has had five different commanders with direction over the TOC changes. Leadership buy-in is crucial to holding the course and reinforcing the cultural behaviors so important to the success of critical chain project management. The presentation will show how the TOC Thinking Processes have been applied to managing leadership expectations and our expectations of leaders.

The TOC Thinking Process of determining What to Change (analysis), To What to Change (strategic planning), and How to Cause the Change (tactical planning) have been applied to design the roadmap for standing down legacy business systems and preparing the way for a new Enterprise Business System. It also became a powerful tool to define a civilian leadership succession process; helping guide senior managers in finding, mentoring, and planning the future moves of promising leadership candidates among the civilian ranks. Detailed case studies on these applications of the strategic planning process will be examined.

Specific examples of Conflict Clouds created in solving the inevitable problems that arise in organizations undergoing cultural change will be presented. Success stories and lessons learned regarding Critical Chain Project Management’s ability to leverage external effects upon customers and suppliers will be covered in detail. We will cover how application of the Process of Ongoing Improvement (POOGI) worked to rescue and reshape faltering TOC Critical Chain Project Management implementations.

In summary, we hope to provide in depth studies in a wide variety of areas where the TOC Thinking Processes and tools have been used successfully across the Air Force Flight Test Center.

MEETING CUSTOMER DEMAND WHEN YOUR CUSTOMER IS ALSO A KEY SUPPLIER

Wednesday, March 29, 3:30-5:00pm
Presenters: Hugh Cole, Partner, Avraham Y. Goldratt Institute (AGI) and VP Customer Service & Training, North America Group, AGI
Gerry Hoffman, Advisory TOC Consultant, North America Group (AGI)

Imagine a business that operates in the mode where (at least) some component of their finished goods eventually comes back around as a raw material. Anything come to mind?

It’s actually more common than what one might think. In fact, there are entire industries where this is the case. Consider any operation where some recycled container gets refilled – like the industrial gas industry. Whether it’s cylinders or rail cars, the same situation exists. How much inventory is required for the “refill” side?

Another environment, often called “supply and maintenance operations,” follows this process as well. Customers are supplied parts that are used until they no longer function properly – at which time they are turned in for immediate replacement. The returned parts are then repaired and stocked until needed by the next customer. How can one determine the number required in the “repaired” state. How about the population of parts in total?

The answer lies in the logic of the TOC Replenishment solution – but in this case it’s more like “replenishment in reverse.” In this TOC World^® breakout session, we will deal with the means to determine the appropriate amount of inventory required to service customers of these type of operations.

ALIGNING AUTHORITY WITH RESPONSIBILITY - DEPLOYING EXCEPTIONS

Wednesday, March 29, 3:30-5:00pm
Presenter: Dee Jacob, Partner, Avraham Y. Goldratt Institute (AGI) and VP Finance & Administration, North America Group, AGI
Kathy Austin, Senior TOC Consultant, North America Group, AGI

Many TOC and non-TOC solutions require the organization to follow, without exception, some new operating paradigms. The difficulty is that there will always be circumstances where someone questions the rule for a particular circumstance – sometimes correctly and sometimes not correctly.

On the one hand, we want to gain the collaboration of those with the responsibility to run the organization. As a result, we feel we need to empower the organization with the full authority for making exceptions. This can unwittingly result in some actions that maintain old paradigms and derail or delay results. On the other hand, to ensure the organization achieves results on the planned timeline, it is necessary the organization strictly adhere to the new rules. As such, we feel we must have people come to us for permission to operate by exception.

This session will show the technique to resolving the conflict above. Examples will be show from TOC Project Management and Supply Chain. Participants will have a chance to practice the skill on a story line.

WRITING & USING ELEVATOR STATEMENTS FOR SUSTAINING DEPLOYMENT

Thursday, March 30, 10:30-Noon
Presenter: Bob Jacob, Partner, Avraham Y. Goldratt Institute (AGI) and Executive TOC Consultant, North America Group, AGI
Dr. Eric De Smet, Partner, Avraham Y Goldratt Institute USA and Managing Director, Avraham Y Goldratt (AGI) Asia Pacific

In Crossing the Chasm, we are exposed to the concept of passing the elevator test for the successful launch of new technology:

“Of the four components, by far the hardest to get right is the claim. It is not that we lack for ideas, usually, but rather that we cannot express them in any reasonable span of time. Hence the elevator test: Can you explain your product in the time it takes to ride up in an elevator? ……. So how can we guarantee passing the elevator test? The key is to define your position based on the target segment you intend to dominate and the value proposition you intend to dominate it with. Within this context, you then set forth your competition and the unique differentiation that belongs to you and that you expect to drive the buying decision your way.”

Though these concepts were derived for the technology market, they hold true for those of us who must sell the deployment of paradigm shifting strategies and solutions.

When deploying breakthrough solutions within an organization, there is a need to communicate to the organization (on an ongoing basis) in a way that has meaning for each member of the organization. What are those few, repeatable phrases that not only ring true why we need to change course but also communicate the difference of the new direction from the status quo that results in a benefit to the target audience – while passing the elevator test.

This session will teach you an easy way for creating Elevator Statements. The participant will work from already existing analyses (Current Reality Tree and Future Reality Trees) for the TOC Supply Chain and Project Management Solutions.

HOW TO APPLY LEAN CONCEPTS TO PROJECTS, WITHOUT SHOOTING YOURSELF IN THE FOOT

Thursday, March 30, 10:30-Noon
Presenter: Dee Jacob, Partner, Avraham Y. Goldratt Institute (AGI) and VP of Administration & Finance, North America Group, AGI

Applying the manufacturing elements of Lean to projects has proved difficult in many project environments. This engaging session will demonstrate proven, effective ways to reduce waste in projects in the planning, scheduling and behavioral aspects of good project management. This session’s solution is based on the Theory of Constraints approach to Project Management.

RIGHT PART, RIGHT PLACE, RIGHT TIME - A HANDS-ON COMPARISION OF MARKET DEMAND-PULL^® REPLENISHMENT TO TRADITIONAL STOCKING METHODS

Thursday, March 30, 10:30-Noon
Presenter: Suzan Bergland, VP Implementation Services, North America Group, Avraham Y. Goldratt Institute
David Bergland, Advisory TOC Consultant, North America Group, Avraham Y. Goldratt Institute, LLP

Supply Chain Management seeks to ensure inventory is strategically placed to protect the goal of the system. As long as the overall lead time to produce and distribute a product is longer than the Customer Tolerance Time (CTT), then the distribution network will have to hold inventory in order to satisfy end users’ demands for “immediate” availability. How much is the right amount of inventory to hold? Just enough to protect the customer during the Time to Reliably Replenish (TRR)! If we’re over protected then we are protecting the customer in a very expensive way. If we are under protected then we jeopardize meeting the customer demand. During this session you will experience how to use Market Demand-Pull^® Replenishment in order to satisfy the uncertain demands of the customer within their CTT while reducing the finished goods required in the system.

WHEN YOU JUST CAN'T GET 'NO' FOR AN ANSWER: THE PRACTICAL APPLICATION OF THE SIX STEPS OF BUY-IN WHERE BUY-IN IS CRITICAL

Thursday, March 30, 10:30-Noon
Presenter: Tracey Burton-Houle, Partner, Avraham Y. Goldratt Institute (AGI) and Executive TOC Consultant, North America Group, AGI

When you ask most people what the biggest obstacle is to making improvements in their organization, the almost universal answer you get is “people’s resistance to change.” Typically, the technical or logistical challenges of most improvement efforts pale in comparison to the challenges of getting people to approve, collaborate and/or effectively implement that change. Having the skills to systematically and effectively win the hearts and minds of people so that they embrace a change is a necessary condition for successfully initiating and leading change efforts within any organization, no matter how big or small the proposed changes. Indeed, these skills are typically what differentiate successful leaders from all the rest.

Most people have been burned by change in the past – and if they haven’t been burned themselves personally, they know others who have. It’s logical then that, when faced with a change, it’s become human nature to immediately begin to scrutinize the change. The way people scrutinize is to question and challenge the change, sometimes very rigorously. As initiators of change, we experience others’ scrutiny as them resisting change when, in fact, they are simply going through the necessary steps in order for them to buy-in to, or embrace, the change being proposed.

In this session, you will learn not only how people intuitively scrutinize a proposed change, but how to use TOC principles and Thinking Processes to pro-actively and successfully facilitate their scrutiny process so that the response you get from them is a resounding “yes, let’s do it!” This session will teach you invaluable skills for constructing an approach to individuals and/or groups that will enable you to initiate and lead successful improvement efforts in your organization. Come to this session with an improvement that you’d like to make in your organization, and the specific audience identified whose buy-in you need to proceed, and leave this session with a whole new perspective on how to get their “yes!” when you return home.