Keita Asaine_12 TOCPA Conference_Eng_April 2014_Russia

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


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


Background of Our Business

Our TOC Journey

Lessons Learned

Agenda


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


Filed Investigation

Basic & Detailed Design

Drawing

Drawing

Bridge Business Overview

Design Department


Bridge Business Overview

Construction Department


2004 2006

Implemented CCPM

for Design Department

Organized

TOC Consulting Business

2007

Implemented CCPM

for Construction Department

Results of Implementation

Bridge Business



Our TOC Journey

Lessons Learned

Agenda


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


The Society of Project ManagementKyusyu Branch Conference

October 2006 in Fukuoka

2006 2007 2008 2009 2011


Participants: 400 people

Keynote Speaker: Oded Cohen

Our TOC JourneyTrigger of TOC Consulting Business


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


Our Target A

rea

with Realization Technologies


Production - MTO

ETO,IT

MTA

Our TOC JourneyRelationship with Experts and Our Activities


Our Target A

rea


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


Our TOC JourneyPublic Works Projects


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


Our TOC JourneyProduction - MTO


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%.


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


Our Target A

rea

Public Works Project Production - MTO ETO,IT MTA

2006 2007 2008 2009 2011


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)


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



Our TOC Journey

Lessons Learned

Agenda


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


Lessons LearnedOur Operational Improvements


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


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



Top Down?

Or

Bottom Up?

Gemba

Top Management

We should focus on making

a linkage between both

Gemba

Top Management



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


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


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


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



High WIP

Fixed Schedule(Fixed Start and Finished date)

(Fixed Resources)

Rework

Example IT Company


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


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



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


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


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


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


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


Lessons LearnedImplementation FK Procedures

Develop procedures/mechanics for the Pilot


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

Documents

Keita Asaine_12 TOCPA Conference_Eng_April 2014_Russia