Introductory call or meeting (1 Hour)
Based on client’s enquiry and subsequent dialogue with us, we have an introductory call or meeting with the Promoter/ Owner/ CEO/ MD of the organization.
The objective of this dialogue is to understand the client’s pains, the scope and deliverables expected from a TOC engagement. We will also try to get a broad understanding of the key financial parameters.
There is no consulting fee for this call. Please write to us at info@localhost to schedule a call.
Diagnostic Study (1-2 weeks)
After a preliminary understanding of the organization, we will need to conduct a detailed diagnostic study, that will involve the following:
- Understanding the company’s organizational structure, products, and market segments
- One-on-one interviews with the top management (key decision makers) to understand the key measurements and their current and target levels
- Analysis of last 3 years’ performance in terms of operational and financial parameters
- Understanding the current pains or challenges faced by the organization
At the end of the diagnostic study, we will share the following:
- Our assessment of the improvement in financial performance in the next 12-24 months
- Current constraint of the organization (Constraint is defined as the limiting factor that prevents the company from improving its financial performance)
- Short training module on the fundamentals of TOC
Typically, the diagnostic study can be completed within a period of 1-2 weeks. We will be able to provide a detailed proposal for TOC implementation after the completion of the diagnostic study. This will include details of the training modules required, the weekly review process, and corrective actions based on the current constraint of the organization.
TOC Education, Weekly Scorecard Preparation and Review Process (10 – 12 weeks)
At the commencement of the project, we will need to train the top team on the basic principles of TOC and its applications. Many of these concepts challenge the conventional management paradigms, it is imperative that the CEO/ MD and all functional heads undergo the initial training programs.
Towards the end of each session, we will agree on certain actions. Most often, these will not be initiating new actions, rather, they will be about stopping current harmful practices. We will proceed further only if there is consensus from the team on these.
Most teams require about 8-10 sessions and can be covered over a period of 10-12 weeks. While the exact training requirements can be shared at the end of diagnostic study, the broad areas to be covered are as follows:
- Alignment on the goal and its measurement across the organization
- Financial literacy for all to facilitate quick and improved decision-making
- Training on specific modules of TOC (operations, supply chain, sales and marketing, project management, strategy and tactics) as per the requirements of the organization
- Detailing of the weekly scorecard and review process
We will implement a weekly review process focusing on some 4 or 5 key metrics through which we would drive all improvement actions. This would also include stopping all unnecessary measurements and meetings. The new review forum would call for the team to plan actions for a 5-week period on a rolling basis, which would be reviewed for corrective actions every week.
TOC Implementation and weekly review process (12-24 months)
Weekly reviews have been the cornerstone of all our engagements over the last 21 years. Companies have been able to achieve quantum improvement in performance, just by changing a few metrics and review processes.
Companies usually review performance monthly. This leads to a significant time lag in getting key data. We recommend a weekly review mechanism with focus on 3-5 key metrics. The weekly report should be simple and accurate, leaving no room for analysis paralysis, and facilitate effective decision-making.
- Monitor plan vs. actual every week: The more our planning improves, the gap between plan vs. actual reduces
- Better than Before: Each week, strive to improve upon past 13 week moving average, irrespective of the external environment
- Setting Targets: Plan for each week should be above 13 week moving average
All corrective actions and improvement projects (e.g. eliminate stock outs, OTIF improvement, inventory reduction etc.) are identified through this forum. Teams are trained on the relevant TOC applications and projects are executed by the client teams with support from our consultants.
There is a relentless focus on improving organizational capability through hand-holding, on the job training and implementation. In addition to the weekly reviews, there are quarterly reviews on the key deliverables and metrics agreed at the start of the project.