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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Our Experience of Implementing TOC
in Japanese Companies
How to get Buy-In from Relevant People
Dr. Keita Asaine, Juntos, Japan
April 27th, 2014
12th International Conference of the
TOC Practitioners Alliance TOCPAwww.tocpractice.com April 26-27, 2014 Moscow, Russia
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Dr. Keita Asaine
Dr. Keita Asaine is a president of Juntos Co. Ltd., andhas over 7 years of TOC experience as practitioner,trainer and consultant.
Keita started his career at Juntos working in the BridgeDesign Department, and gradually engaged in Sales,too.His engagement with TOC started in 2004 as aninternal consultant.
In 2008-2011, he was a faculty member of GoldrattSchools.
He has a Ph.D. in Engineering from Kyushu Institute ofTechnology (KIT) in Japan. He teaches TOC-TP,Production and Project for Masters program at KIT.
He is also one of the Founding members of TOCPA TOC Practitioners Alliance.
[email protected]://www.juntos.co.jp
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Background of Our Business
Our TOC Journey
Lessons Learned
Agenda
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Tokyo
Fukuoka
Osaka
Juntos Co., Ltd.
Hakata SS Building 4F, 7-2 Hakata-eki Chuohgai, Hakata-ku,Fukuoka-shi, 812-0012
Fukuoka, Japan
Bridge Business
TOC Consulting Business
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.
Company Profile
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Filed Investigation
Basic & Detailed Design
Drawing
Drawing
Bridge Business Overview
Design Department
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Bridge Business Overview
Construction Department
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
2004 2006
Implemented CCPM
for Design Department
Organized
TOC Consulting Business
2007
Implemented CCPM
for Construction Department
Results of Implementation
Bridge Business
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Background of Our Business
Our TOC Journey
Lessons Learned
Agenda
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Our TOC JourneyRelationship with Experts and Our Activities
2006 2007 2008 2009 2011
The Society of Project ManagementKyushu Branch ConferenceKeynote Speaker : Oded Cohen
Training Programs & Implementation Supports given by Goldratt Schools & TOC Strategic Solutions
Trainers : Oded Cohen and Jelena Fedurko
CCPM SDBR SCM MT (TP)
Our Target A
rea
with Realization Technologies
Public Works Project
Production - MTO
ETO,IT
MTA
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
The Society of Project ManagementKyusyu Branch Conference
October 2006 in Fukuoka
2006 2007 2008 2009 2011
CCPM SDBR SCM MT (TP)
Participants: 400 people
Keynote Speaker: Oded Cohen
Our TOC JourneyTrigger of TOC Consulting Business
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
2006 2007 2008 2009 2011
The Society of Project ManagementKyushu Branch ConferenceKeynote Speaker : Oded Cohen
Training Programs & Implementation Supports given by Goldratt Schools & TOC Strategic Solutions
Trainers : Oded Cohen and Jelena Fedurko
CCPM SDBR SCM MT (TP)
Our Target A
rea
with Realization Technologies
Public Works Project
Production - MTO
ETO,IT
MTA
Our TOC JourneyRelationship with Experts and Our Activities
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Our Target A
rea
Public Works Project
Daiken
DDP improved from 66% to 81%.
Overtime reduced by 40%.
Sales Increased by 10%.
Clear visibility of progress of projects.
NIKKEI CONSTRUCTION2010 3.12 P49-P51
2006 2007 2008 2009 2011
CCPM SDBR SCM MT (TP)
Our TOC JourneyPublic Works Projects
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Our Target A
rea
Public Works Project Production - MTO
Kuroiso Seisakusho 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%
Japan TOC Advancing CommitteeAnnual Conference, 2008
Japan TOC Advancing CommitteeAnnual Conference, 2010
Nippon Tungsten DDP improved from 70% to 98%.
Production lead time reduced from 26 days to 10.5 days (in-house products)
Focused control of production execution.
2006 2007 2008 2009 2011
CCPM SDBR SCM MT (TP)
Our TOC JourneyProduction - MTO
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Our Target A
rea
Public Works Project Production - MTO ETO,IT
Asahi Seisakusho[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.
PROJECT FLOW 2011 at San Diego
2006 2007 2008 2009 2011
CCPM SDBR SCMwith Realization Technologies
MT (TP)
Our TOC JourneyETO, IT Projects
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Our Target A
rea
Public Works Project Production - MTO ETO,IT MTA
2006 2007 2008 2009 2011
CCPM SDBR SCM MT (TP)
Our TOC JourneyProduction - MTA
Anonymous Company S 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 CommitteeAnnual Conference, 2013
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Background of Our Business
Our TOC Journey
Lessons Learned
Agenda
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Average Cycle Time27 wks
Average Cycle Time22 wks
Avg Cycle Time11 wks
Avg Cycle Time15 wks
Before2007-2009
After2010-
Implemented
Solution for Sales
For Sales For Implementation
2006 2007 2008 2009 2011
CCPM SDBR SCM MT (TP)
Lessons LearnedOur Operational Improvements
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Top Management
Gemba
Top Down
ApproachCycle Time for
Sales Cycle Time for Implementation
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.
The Cycle time for both Sales and Implementation is influenced by the
ability of getting Buy-in from Top management and Gembas managers.
Decision
Lessons LearnedHow to Approach to Customers
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
GembaBottom Up
Approach
Cycle Time for Sales Cycle Time for Implementation
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.
Top Management
The Cycle time for both Sales and Implementation is influenced by the
ability of getting Buy-in from Top management and Gembas managers.
Decision
Lessons LearnedHow to Approach to Customers
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Top Down?
Or
Bottom Up?
Gemba
Top Management
We should focus on making
a linkage between both
Gemba
Top Management
Lessons LearnedHow to Approach to Customers
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
To understand the process & managerial flow
To identify the valid UDEs and Core Conflict
To create a Negative Loop of the system
To design a high-level solution
Solution Design Full Kit
Solution Design FK
Management Workshop
Management Workshop Pilot ImplementationPilot Implementation Roll-outRoll-outImplementation FKImplementation FK
Gemba
Top Management
Lessons LearnedHow to Make a Linkage Solution Design FK
Implementation FK
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Lessons LearnedSolution 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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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Lessons LearnedSolution Design FK Core Cloud
BMake in-process
task/project toward
completion
D
Not switch to
another task
CResolve
urgent/short woks
immediately
D
Switch to
another task
A
Manage projects
successfully
Example IT Company
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Lessons LearnedSolution Design FK Negative Loop
Open another task while
waiting for decision/support
Or
Start too early
(before inputs are full-kitted)
Multi-tasking
(of Resources/Managers)
Tasks/projects take
much longer
Need to show progress,
Standing idle is BAD
Wait time Inputs are not available when
needed
Often resources are not available when needed
Priorities constantly shift
High WIP
Fixed Schedule(Fixed Start and Finished date)
(Fixed Resources)
Rework
Example IT Company
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Lessons LearnedSolution Design FK Injections
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
Example IT Company
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Lessons LearnedSolution Design FK Negative Loop
Open another task while
waiting for decision/support
Or
Start too early
(before inputs are full-kitted)
Multi-tasking
(of Resources/Managers)
Tasks/projects take
much longer
Need to show progress,
Standing idle is BAD
Wait time Inputs are not available when
needed
Often resources are not available when needed
Priorities constantly shift
High WIP
Fixed Schedule(Fixed Start and Finished date)
(Fixed Resources)
Rework
Example IT Company
Rule 1
Pipelining
Rule 2
Full Kit
Rule 3Buffer Management
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Solution Design FK
Solution Design FK
Management Workshop Pilot ImplementationPilot Implementation Roll-outRoll-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
Implementation FKImplementation FK
Gemba
Top Management
Lessons LearnedHow to Make a Linkage Management Workshop
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Solution Design FK
Solution Design FK
Management Workshop
Management Workshop Pilot ImplementationPilot Implementation Roll-outRoll-out
Core team develops the knowledge of solution
Core team develops the procedures/mechanics for the Pilot
Core team conducts internal sessions about the new way of managing
Implementation Full Kit
Implementation FK
Gemba
Top Management
Lessons LearnedHow to Make a Linkage Implementation FK
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
How to transfer the knowledge Example of MTA
Lessons LearnedImplementation FK MTA Game
Introduce a suggested
solution (MTA)
Run MTA Game
(Run 3 Scenarios)
Review results and find
cause & effect
Integrate experience
into solution elements
Scenario 1 :Fixed schedule based on forecast
Scenario 2 :Release based on consumption with same frequency of replenishment
Scenario 3 :Release based on consumption with more frequent replenishment(MTA mode)
Scenario 1 Scenario 2 Scenario 3
Sales (total) 254 263 262
Stock out (total) 40 43 2
Availability 84% 84% 99%
Released Units (total) 320 280 268
Avg Release Rate (daily) 8 7 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
Avg Consumption Rate (daily) 6.4 6.6 6.6
Days Inventory (DI) 11.5 7.8 7.0
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Lessons LearnedImplementation FK MTA Game
Introduce a suggested
solution (MTA)
Run MTA Game
(Run 3 Scenarios)
Review results and find
cause & effect
Integrate experience
into solution elements
How to transfer the knowledge Example of MTA
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Lessons LearnedImplementation FK Procedures
Develop procedures/mechanics for the Pilot
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www.tocpractice.com 12th International Conference of the TOC Practitioners Alliance - TOCPA
Solution Design FK
Solution Design FK
Management Workshop
Management Workshop 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
Implementation FKImplementation FK
Gemba
Top Management
Lessons LearnedHow to Make a Linkage Pilot, Roll-out