Theory of Constraints Handbook - James Cox Iii [341]
To mitigate the risks it is vital to have or provide a well-crafted, clear, and credible road-map backed by sufficient internal and external support. A well-structured S&T with valid assumptions provides a clear vision and garners strong consensus to action.
Unless there is follow-up and follow-through by leaders, the required actions either will not be taken or at best will not be sustained. Lack of follow-up and follow-through is rapidly interpreted that something is no longer a priority.
Importance of Aligning IT Systems with TOC Rules
Do not confuse simple with easy. Even simple rules can be difficult to implement, especially within large and complex environments. IT systems such as Enterprise Resources Planning (ERP) play an important role in helping organizations implement, apply, and sustain new Throughput-driven rules. They can help alter planning, execution, feedback, and control by identifying leverage points for continuous improvement. One way to ensure full alignment between the organizational growth/business strategy and the changes needed within the ERP and other IT systems is to use S&T as a tool to define and obtain agreement on detailed IT system changes required to support a new growth strategy. An example of the benefits of this approach was shown in the “One Simple ABB” case study where S&T was used to define and obtain agreement on the detailed ERP system (SAP) changes to support and implement a set of simple TOC planning, execution, and continuous improvement rules within a large number of factories (Barnard, Rajaniemi, and Nordstrom, 2009).
Continuous Improvement and Auditing
Frequently, the business environment changes or reality proves (despite the best possible logical analysis) that one or more of the assumptions of necessity or sufficiency or inherent potential were simply not true. This calls for constant re-evaluation of assumptions about inherent potential, the system constraint that limits us from unlocking this potential, and the necessary and sufficient conditions needed to support this decision. Chapter 15 of this Handbook provides a detailed description of designing and implementing a TOC-based continuous improvement and auditing mechanism and culture needed to support a holistic TOC implementation and to prevent or at least minimize typical management errors of omission, commission, detection, and correction.
Become the Change You Want to See
Our final recommendation to those considering the implementation of TOC in their organizations, especially to those struggling to get support or consensus, is simply to follow the advice of Mahatma Gandhi—“Become the change you want to see in the world.”
Start using the TOC TP tools and logistical applications in your area, and soon it will spread to other areas, sometimes well beyond the original area of influence.
Summary
Achieving a holistic implementation of TOC should start with setting a very ambitious target for achieving both sustainable growth and stability, not based on extrapolation from the past, but on the inherent potential. If an ambitious target already exists, it should be validated to ensure that it really would be a win-win-win for all stakeholders.
Once an ambitious goal has been set, time should be invested with all the stakeholders to really understand the gap (between actual performance and the goal) and also to ensure that all stakeholders understand the consequences (on the system as a whole using predicted effect logic to determine the likely impact on key stakeholders and using T, I, and OE to determine the financial impact) of both closing and not closing the gaps.
Next, the important decision has to be made on where to focus scarce resources to close the gap (to sustainably improve the flow of goal units) and, if not more important, to decide where not to focus. A proven way to get these answers is to use TOC’s 5FS and TP such as the S&T tree. All such change initiatives of what to start and stop should be planned and