TOCPA) 15¢* International Conference of the TOC Practitioners Alliance - TOCPA 1SRRTOCPABIRSIX - 2014 TOCHIYS (CG) goldratt November 14-15, 2014, China 2014#F11F)14-15B , PE www.tocpractice.com Focus on the Core Problem of a Company RT EAA ea Achieving results dealing with complexity, uncertainty and conflicts. ARLE. MELA PASI Idratt Consulting, China 14-15 Nov. 2014 15" International Conference of the TOC Practitioners Alliance-TOCPATOCPA\ #5 Will Jin G goldratt ‘www. tocpractice.com SHAE (Will Jin) SSS SSANHITERER , 201163 AMAGC , MAFIOCHHEMIE Si. Will Jin joint Goldratt Consulting in Mar 2011 as a viable vision expert, and focusing on TOC implementingin China. SHES TOCRIAINE : hme. HCH. $225, ety. EDR. SHRIAIRITERSS. FARCE , I +, ABIRGHERUESS. Will Jin has experience of TOC implementation in the following industries: Small Domestic Appliance, Tooling component, shoe-making, shoe component, printing, call center for hotel booking, automobile supplier, steel structure project management, and heavy machinery selling and service, etc. / EK 75 XX Contact info BSN RATOCHAA SAIS : PUVA ACRaAEA Biz: +86-13902596254 SEMTIO. ABSIEEHMTA, EEHECCPM, MRO 956159 DRAB LSITASS. ait: 25085563, 215521007 Experience in the TOC applications including : S&T, MTO, MTA, CCPM, MRO, TA etc. tocchina n@139.com n/gcclubchina ners Alliance-TOCPA 15" International Conference of the TOC PractHz G goldratt 1. META : SHENK R SMS ANMARR. PE MWSBRSSARj TERRE ; Sten Fert. | | RRetEiy MRE Es eI hseZ , 2. WERUITA : REMMATBRARIMARZ : RAT TEPER Ars A AS ek A SEO EROS ASR ELRALS , BEA F ee SRE ference of the TOC Practitioners Alliance-TOCPAAbstract G goldratt wwwtocpractice.com 1. What to change: Management attention is the ultimate constraint of the system. A lot of companies’ management make 3 managerial mistakes: Imposing simplicity on complexity; Imposing certainty on uncertainty; Imposing harmony on conflicts 2. What to change to: Decide how to exploit the system's constraint(s Focus on the core conflict — bringing ongoing ; Build, capitalize and sustain the > edge which can bring value to client. 15" International Conference of the TOC Practitioners Alliance-TOCPAKRERFSEB copyright G ooldrat www.tocpractice.com ABABATOCPASINEH , KATOCPALI Aw FFA, ASRS. , SH, a, we, AA BUSES. HAF the TOCPA conference materials and ed, reprinted, dismantled, plagiarized, out the permission from the TOCPA ‘the cooperation. 15" International Conference of the TOC Practitioners Alliance-TOCPAManagement Attention emewsete Colt What to Change? Oa eG How to cause the What to Change? Change to? cede Grrr 15® International Conference of the TOC Practitioners Alliance- TOCPA.tocea) Management Attention emenxte Cle (71h OF FE SE ELK SEE RSET PS Hk RR ER - a SRE TH - ZG ERNE BS? - BARES ? ZEBARR? A SERS 2 AeA? SAA? CETERA? Se Se HIT? B? RETELUS ? 15" International Conference of the TOC Practitioners Alliance-TOCPAJA SeoO = 2 2222222 222222 2 ene eee e | > Cut back on cost / investments Pil J BL AS/PE x | > Maximizing efficiency’s (get the maximum of current resources) AFR K | 4 CARIDAD = 4 > Focus on short te! Ensure smooth current Focus on current operations performance reUN ice aurpensi) | RTSIEE ape Successful company RTI TAAL Focus on long (ekreieyidare kenge proseray mm mabe PRB AB NRE BRE > Make investments HET HEE > Allow protective capacity #0 1F RHE“ AE > Focus on profit fe FAA Emer ene reT remrone arcitences- SPA,Management Attention Geese © soldat RIL IPR, oo www.tocpractice.com Ensure smooth current Performances oR “FAB HY Si gi Growth i@4< " Stability B5E i ion tothe other. —*2A—THAH But.. (BE. . 2 in conflict with actions to the other. TMS HT RT HA 15" International Conference of the TOC Practitioners Alliance-TOCPA tong term aaahQs aa Gers Gisedice www.tocpractice.com Ensure Focus on smooth current current performance ffi FR operations 3% Fh 4 BTR : company ARTA BE Ensure long term term health3& prosperity ARES ATEN RAE ‘International Conference of the TOC Practitioners Alliance-TOCPAManagement Attention «EME Dr. Goldratt’ s on the Science of Management Beast “SHANA” G goldratt > | YOUR MIT) — Soldratt science of management Q 15® International Conference of the TOC Practitioners Alliance - TOCPAManagement Attention BHENXIEE The real constraint: Management Attention. ?- BENNARR : SBENLE The 3 fundamental mechanisms wasting and distorting management attention: RETA SIA A= “MSA ALN : — The fear of Complexity -> driving to dissect the system to sub-systems and bringing G goldratt BRADRRERR, HERACSH DMR. driving to manage by finer and finer detail resolution, MALES, ERE PTH. g with unacceptable compromises. (SF MUELLER 15" International Conference of the TOC Practitioners Alliance-TOCPAPee | Mth ORASP aT HFG? Hires Li? Dsenrih? Att Per mea? Be HE ANA SOE, DRE AIRE? HAR AIT th? P= A a Oo bee | (eter ey ea ° al Pee fn) (FEMPREMATWTE) (AGRA, MISE Sha PSS EE Hebe Apes FRO AL PURER BSH MRS, FT Te), aR Ree OA PRES RMP MAT HIRT Pet thet 15" International Conference of the TOC Practitioners Alliance-TOCPAManagement Attention a BHENXIEES THE FIVE FOCUSING STEPS AELTS Step 1: Identify the system’s constraint(s) SH: RARTH HAAR Step 2: Decide how to exploit the system’s constraint(s) BF: RELZMALRARHHADR Step 3: Subordinate everything else to the above decision BSF: SM HA-VTRULMRE Step 4: Elevate the system’s constraint(s) BOs: BARA MRA Step 5: If in the previous steps a constraint has been broken, go back to step 1. Warning: Don’t allow inertia to cause a system constraint(s)!!!! BAF MPHaS Rp HHAARE RIT, ERS—Z. Ze PRLS rani 15® International Conference of the TOC Practitioners Alliance - TOCPA G goldrattManagement Attention euewsze Cort “Step 1: identify the system’s constraint(s) B—H: PARRA HN Management Attention FHBHWXFE Step 2: Decide how to exploit the system’s constraint(s) SxS: REBMMCRARVHA Focus on the core conflict — bringing ongoing Stability and Growth... RTD PR - PRA Mie FUL - Build the Competitive edge #32 DCE cisive Competitive Edge S 15" International Conference of the TOC Practitioners Alliance-TOCPA=2;| Management Attention é. SBEnTE Decisive Competitive Edge-REttrsFHt% DCE : — The starting point is VALUE! And not a comparison competitive position. HAMZIME ! FRB—-THS FEMAIL. — Value: diminishing a significant limitation for the client to an extent no alternative can. (MH: HRT &P—-TEBXK PRiil, FABRA AM FB] LAME E — The cycle of Build -> Capitalize -> Sustain. B#I7->FES} Fl FA-> HERS A G goldratt Erect) 15" Interns Conference of the TOC Practitioners Alliance-TOCPATOCPA\ M . anagement Attention rae or ees Caren L Step * Subordinate everything else to the above decision S=F: HMHA-VMTRULHRE Remove the mechanisms blocking management attention from building, capitalizing and sustaining a competitive edge: 2 RAI AMR eH eKEE ATBW, EAA AAA ARES Si A Ll 1, Identify the key constraints and protect the flow. Remove disruptive local optima. IRS RSE AERP aoe. ERA Ti eae 2. Clean the noi caused by over-data and excessive accuracy - Manage buffers. ERENT fhRS -SEeH icts — focus attention to challenge assumptions and MXR R-RPRARAGS, FRAEver Flourishing BMH G goldratt www.tocpractice.com What do we need... HAiBEBITA. . » 4m Growth: We need to identify a significant need of the market that the company can satisfy fo an extent no significant competitor can (= Competitive edge), vaste; Feseheal—- Eh iss ante , Stas Seamer peaN eT a Shim (eas) ———. Stability: The same actions that build the competitive edge of the company should bring fast stability — increase efficiency, | sh, controlled investments, freeing up penton. lea ween. ichronize the system functions to work e in harmony. We should ensure reases harmony rather than creates isl Ein. ie ES RaRE ap J TE PE aS, 15® International Conference of the TOC Practitioners Alliance- TOCPA.TOCPA G goldratt iBtiaT Thank you 15® International Conference of the TOC Practitioners Alliance - TOCPA