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12th International Conference of the

TOC Practitioners Alliance TOCPA


www.tocpractice.com

April 26-27, 2014 Moscow, Russia

Our Experience of Implementing TOC


in Japanese Companies
How to get Buy-In from Relevant People

Dr. Keita Asaine, Juntos, Japan


April 27th, 2014

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Dr. Keita Asaine


Dr. Keita Asaine is a president of Juntos Co. Ltd., and
has over 7 years of TOC experience as practitioner,
trainer and consultant.
Keita started his career at Juntos working in the Bridge
Design Department, and gradually engaged in Sales,
too.
His engagement with TOC started in 2004 as an
internal consultant.
In 2008-2011, he was a faculty member of Goldratt
Schools.
He has a Ph.D. in Engineering from Kyushu Institute of
Technology (KIT) in Japan. He teaches TOC-TP,
Production and Project for Masters program at KIT.

keita@juntos.co.jp
http://www.juntos.co.jp

He is also one of the Founding members of TOCPA


TOC Practitioners Alliance.

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Agenda

Background of Our Business

Our TOC Journey

Lessons Learned

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Company Profile

Juntos Co., Ltd.


Juntos was established in 1991 to provide bridge design and
construction service. Since 2004 Juntos has been successfully
implementing CCPM for it.
Based on the practical experience, a department of
"TOC Consulting Business" was newly organized in Juntos.

Bridge
Business

TOC
Consulting
Business

Tokyo
Osaka
Fukuoka

Hakata SS Building 4F, 7-2 Hakata-eki Chuohgai,


Hakata-ku,Fukuoka-shi, 812-0012
Fukuoka, Japan

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Bridge Business Overview


Design Department
Filed Investigation

Drawing

Basic & Detailed Design

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Drawing

12th International Conference of the TOC Practitioners Alliance - TOCPA

Bridge Business Overview


Construction Department

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Results of Implementation
Bridge Business
Organized
TOC Consulting Business
Implemented CCPM
for Design Department

Implemented CCPM
for Construction Department

2004

2006

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2007

12th International Conference of the TOC Practitioners Alliance - TOCPA

Agenda

Background of Our Business

Our TOC Journey

Lessons Learned

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Our TOC Journey


Relationship with Experts and Our Activities

The Society of Project Management


Kyushu Branch Conference

Training Programs & Implementation Supports given


by Goldratt Schools & TOC Strategic Solutions

Keynote Speaker : Oded Cohen

Trainers : Oded Cohen and Jelena Fedurko

CCPM

2006

2007

SDBR

2008

SCM

MT (TP)

2009

2011

with
Realization Technologies

Our Target Area

Public Works Project

Production - MTO

ETO,IT

MTA

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Our TOC Journey


Trigger of TOC Consulting Business

CCPM

2006

2007

SDBR

SCM

2008

MT (TP)

2009

2011

The Society of Project Management


Kyusyu Branch Conference
October 2006 in Fukuoka
Participants: 400 people

Keynote Speaker:
Oded Cohen
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12th International Conference of the TOC Practitioners Alliance - TOCPA

Our TOC Journey


Relationship with Experts and Our Activities

The Society of Project Management


Kyushu Branch Conference

Training Programs & Implementation Supports given


by Goldratt Schools & TOC Strategic Solutions

Keynote Speaker : Oded Cohen

Trainers : Oded Cohen and Jelena Fedurko

CCPM

2006

2007

SDBR

2008

SCM

MT (TP)

2009

2011

with
Realization Technologies

Our Target Area

Public Works Project

Production - MTO

ETO,IT

MTA

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Our TOC Journey


Public Works Projects

CCPM

2006

2007

SDBR

2008

SCM

MT (TP)

2009

2011

Public Works Project

Daiken

Our Target Area


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DDP improved from 66%


to 81%.
Overtime reduced by
40%.
Sales Increased by 10%.
Clear visibility of progress
of projects.

NIKKEI CONSTRUCTION
2010 3.12 P49-P51

12th International Conference of the TOC Practitioners Alliance - TOCPA

Our TOC Journey


Production - MTO

CCPM

2006

2007

SDBR

SCM

2008
Public Works Project

MT (TP)

2009
Production - MTO

Kuroiso Seisakusho

Our Target Area


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2011

DDP improved from 65% to 95%.


Production lead time reduced by 50%.
Sales increased by 16%.
[On-going: 2011-2012]
Sales increased by 40%
Achieved operating margins of >20%

Nippon Tungsten
DDP improved from 70% to 98%.
Production lead time reduced
from 26 days to 10.5 days (inhouse products)
Focused control of production
execution.

Japan TOC Advancing


Committee
Annual Conference, 2008

Japan TOC Advancing


Committee
Annual Conference, 2010

12th International Conference of the TOC Practitioners Alliance - TOCPA

Our TOC Journey


ETO, IT Projects
with Realization Technologies
CCPM

2006

2007

SDBR

2008

SCM

MT (TP)

2009
Production - MTO

Public Works Project

2011
ETO,IT

Asahi Seisakusho

Our Target Area

[Production]
Production lead time
reduced by 36%.
DDP improved to 98.7%.
Overtime reduced by 85%.
[Engineering]
Completion rate increased
by 23%.
Engineers overtime reduced
by 35%.
Sales increased by 15%
Achieved record-setting
Profit for the past 60 years.

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PROJECT FLOW 2011 at San Diego

12th International Conference of the TOC Practitioners Alliance - TOCPA

Our TOC Journey


Production - MTA

CCPM

2006

2007

SDBR

2008

SCM

MT (TP)

2009
Production - MTO

Public Works Project

2011
ETO,IT

MTA

Anonymous Company S

Our Target Area

Increased Availability for MTA SKUs (> 2000 items)


From 92-93% to 97-98%
Same FG stock level (DIOH)
Sales increased by 5%
Significant reduction in overtime

Anonymous Company Y (Pilot 3 months)


Increased Availability of parts (93 items)
From 72% to 82%
Production lead time for parts reduced
from 17.6 days to 6.4 days
Inventory Turns increased by 44%
Productivity increased by 26%
Japan TOC Advancing Committee
Annual Conference, 2013

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Agenda

Background of Our Business

Our TOC Journey

Lessons Learned

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
Our Operational Improvements

CCPM

2006

2007

SDBR

2008

SCM

MT (TP)

2009

2011

Implemented
Solution for Sales
For Sales
Average Cycle Time
27 wks

Before
2007-2009

After
2010-

For Implementation

Avg Cycle Time


11 wks

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Average Cycle Time


22 wks

Avg Cycle Time


15 wks

12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
How to Approach to Customers
The Cycle time for both Sales and Implementation is influenced by the
ability of getting Buy-in from Top management and Gembas managers.
Top Down
Approach

Top
Management

Decision

Cycle Time for


Sales

Cycle Time for Implementation

Gemba

Decision-making may be done in a short period of time, but we will face a lot
of difficulties due to the lack of consensus with Gemba.
As a result,
Too many reworks during the implementation phase
Cycle time for implementations will take longer than expected.
Gemba may stop to use the solution eventually.
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12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
How to Approach to Customers
The Cycle time for both Sales and Implementation is influenced by the
ability of getting Buy-in from Top management and Gembas managers.
Decision

Top
Management
Cycle Time for Sales

Bottom Up
Approach

Cycle Time for


Implementation

Gemba

It may take longer time than expected to make a decision.


The scope of the implementation may become too small.
As a result,
Top management does not be involved when changing the rules, policies
and measurements is required.
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12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
How to Approach to Customers

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Top Down?
Or
Bottom Up?

We should focus on making


a linkage between both

Top
Management

Top
Management

Gemba

Gemba

12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
How to Make a Linkage Solution Design FK

Top
Management

Solution Design Full Kit


To understand the process & managerial flow
To identify the valid UDEs and Core Conflict
To create a Negative Loop of the system

Gemba

Solution Design
FK

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Management
Workshop

To design a high-level solution

Implementation FK

Pilot Implementation

Roll-out

12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
Solution Design FK UDEs
Example IT Company
UDEs Un-Desirable Effects
Inputs are not available when needed
Often resources are not available when needed
Priorities constantly shift
Too much rework
Too much overtime
Managers and resources have too many tasks
Many projects take longer than expected
Existing projects are disrupted by extra work

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
Solution Design FK Core Cloud
Example IT Company

B
Make in-process
task/project toward
completion

D
Not switch to
another task

A
Manage projects
successfully
C
Resolve
urgent/short woks
immediately

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D
Switch to
another task

12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
Solution Design FK Negative Loop
Example IT Company
Need to show progress,
Standing idle is BAD

Open another task while


waiting for decision/support
Or
Start too early
(before inputs are full-kitted)

Fixed Schedule
(Fixed Start and Finished date)
(Fixed Resources)

Wait time
Inputs are not available when
needed
Often resources are not available
when needed
Priorities constantly shift

Rework

Tasks/projects take
much longer

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Multi-tasking
(of Resources/Managers)

High WIP

12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
Solution Design FK Injections
Example IT Company

Rule 1 : PIPELINING
Limit WIP and Concentrate Resources / Task Managers

Rule 2 : FULL KIT


Not Start tasks before completing task preparations

Rule 3 : BUFFER MANAGEMENT


Build Buffered Plan and Allocate people based on buffer priorities

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
Solution Design FK Negative Loop
Example IT Company
Need to show progress,
Standing
idle2is BAD
Rule

Full Kit

Open another task while


waiting for decision/support
Or
Start too early
(before inputs are full-kitted)

Fixed Schedule

Rule 3

(Fixed Start and Finished date)


(FixedManagement
Resources)
Buffer

Wait time
Inputs are not available when
needed
Often resources are not available
when needed
Priorities constantly shift

Rework

Tasks/projects take
much longer

www.tocpractice.com

Multi-tasking
(of Resources/Managers)

High WIP

Rule 1
Pipelining

12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
How to Make a Linkage Management Workshop

Top
Management

Gemba

Solution Design
FK

Management
Workshop

Implementation FK

Pilot Implementation

Roll-out

In Management Workshop for Top Management:


To give the management full recognition of Low Performance by showing
the GAP Developing the Business Need
To get full Buy-in to Core problem and Direction of Solution
To get approval for running Pilot
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12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
How to Make a Linkage Implementation FK

Top
Management

Implementation Full Kit


Core team develops the knowledge of solution
Core team develops the procedures/mechanics
for the Pilot

Gemba

Solution Design
FK

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Management
Workshop

Core team conducts internal sessions about the


new way of managing

Implementation FK

Pilot Implementation

Roll-out

12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
Implementation FK MTA Game
How to transfer the knowledge Example of MTA
Scenario 1 :
Fixed schedule based on forecast

Introduce a suggested
solution (MTA)
Run MTA Game
(Run 3 Scenarios)
Review results and find
cause & effect
Integrate experience
into solution elements

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Scenario 1

Scenario 2

Scenario 3

Sales (total)

254

263

262

Stock out (total)

40

43

Availability

84%

84%

99%

Released Units (total)

320

280

268

6.7

Completed Units (total)

248

232

236

Avg Completion Rate (daily)

6.2

5.8

5.9

Avg WIP

47

32

23

Avg On-hand stock

26

19

23

Total Inventory (WIP + On-hand)

73

51

46

6.4

6.6

6.6

11.5

7.8

7.0

Avg Release Rate (daily)

Scenario 2 :
Release based on consumption
with same frequency of
replenishment

Avg Consumption Rate (daily)


Days Inventory (DI)

Scenario 3 :
Release based on consumption with
more frequent replenishment
(MTA mode)

12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
Implementation FK MTA Game
How to transfer the knowledge Example of MTA

Introduce a suggested
solution (MTA)
Run MTA Game
(Run 3 Scenarios)
Review results and find
cause & effect
Integrate experience
into solution elements

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
Implementation FK Procedures
Develop procedures/mechanics for the Pilot

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12th International Conference of the TOC Practitioners Alliance - TOCPA

Lessons Learned
How to Make a Linkage Pilot, Roll-out

Top
Management

Gemba

Solution Design
FK

Management
Workshop

Implementation FK

Pilot Implementation

Roll-out

In Pilot Implementation & Roll-out:


To achieve immediate results so that Gembas managers get a confidence
on the solution
To establish a clear cause & effect logic between results and the solution
To upgrade the procedures and make them as a part of the new reality
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12th International Conference of the TOC Practitioners Alliance - TOCPA