TOCICO 2011 Conference

Copyright © Eliyahu M. Goldratt 2011

It was time to implement the first Freeze step in a highly secure area of a very large company.

Only people with certain company and government security clearances were allowed in the area – our people were not allowed in.

Now what? How to provide the appropriate support to ensure the appropriate level of understanding and actions?

From Consulting Team

To Company Management

To Line Supervisors

From Management

To “Level 6” Action Plan

From Line Supervisors

The Level 6 Action Plans provided the proof thatthe appropriate knowledge had been deliveredand the right actions would be taken.

5

5.111.1 Freeze ProjectsTask Description Action PlanListing of all Projects Project List preparedDetermine Criteria for Freezing Projects

Guide lines disseminated & placed in intranet

Prioritize Projects and Freeze

Prioritized list placed in intranet portal

Review mechanism for Freezing implementation

Display Boards in shopsWeekly Tasks list for alldepartments

Same type of table prepared for every Level 5 Step

6

7

TOCICO 2011 Conference

Month Total Projects

No. projects frozen

No. Projects Completed REMARKS

JUN-10 206 NIL 3

Prior to VVJUL-10 203 NIL 8AUG-10 195 NIL 6SEP-10 189 NIL 3OCT-10 186 NIL 10

Freezing TasksNOV-10 176 NIL 16DEC-10 160 74 35 • Core team &

champions formed• Freezing ProjectsJAN-11 125 52 51

Investing in Gemba (workforce) knowledge, & gaining Gemba collaboration in detailing the actions they themselves will take, not only feels good, it pays big dividends!

The practicality of WA (harmony)

1. Knowledge & Commitment of

Top Management

2. Top Management

teaches, gains buy-in & collaboration

of next level

3. Next level teaches, gains buy-in & collaboration

of next level….

4. Etc. through the people who turn L5 into L6

actions

TOCICO 2011 Conference

Copyright © Eli Goldratt 2011 Date: June 13-14, 2011

Month Total Projects

No. projects frozen

No. Projects Completed REMARKS

JUN-10 206 NIL 3

Prior to VVJUL-10 203 NIL 8AUG-10 195 NIL 6SEP-10 189 NIL 3OCT-10 186 NIL 10

Freezing TasksNOV-10 176 NIL 16DEC-10 160 74 35 • Core team &

champions formed• Freezing ProjectsJAN-11 125 52 51

Average = 5

Average = 13

Average = 43

Past Experience 5/month New Reality 43/month

Through September ‘10, how many projects per quarter?

What was throughput per quarter?

From January ‘11, how many projects per quarter?

What is the new throughput per quarter?

Assumptions: SP per project ∼ $500k, T ∼ 40%

5 43

$1m $8.6m

How much more profit is generated per quarter?

Per year?$7.6m

$30.4m

WOW! More than 7X

additional profits! $7 million per

quarter directly to the bottom line!

Month Total Projects

Projects Completed

Change from Prior

Month

Cumulative Change

JUN-10 206 3

JUL-10 203 8 -1% -1%

AUG-10 195 6 -4% -5%

SEP-10 189 3 -3% -8%

OCT-10 186 10 -2% -10%

NOV-10 176 16 -5% -15%

DEC-10 160 35 -9% -25%

JAN-11 125 51 -22% -46%

206 203195 189 186

176160

125

-1%

-5%-8%

-10%

-15%

-25%

-46%

-50%

-45%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

0

50

100

150

200

250

Perc

enta

ge C

hang

e

Num

ber o

f Pro

ject

s

Trend of the Projects Backlog

Projects in Backlog

Cumulative Change

• Internal Stakeholders• External Stakeholders

Process On the Shoulders of Critical Path

1. The giant2. Enormity of unaffected area3. Getting on the giant’s

shoulders4. Conceptual difference5. Wrong assumption6. Full analysis

1. CCPM2. All projects3. Understanding how multitasking was

taught, and evaluating the existing Projects S&T.

4. The full impact of multitasking on capacity was not recognized.

5. Multitasking stretches lead time significantly but has little impact on the touch time itself.

6. The freeze mechanisms; approach to implementation; modifications needed to S&T’s. Implications on other S&T’s.

• I KNOW means you have created a bigger and more solid base.

• A much bigger jump is there!

What insights did you gain today?