08-Andrew Jackson-Oded Cohen_21 TOCPA_UK_11 November 2015 - V3_for Web

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21st International Conference of the

TOC Practitioners Alliance - TOCPA

www.tocpractice.com 11 November 2015 !"

TOC in Tri#mph - A 25 $ears %o#rne$

Andrew Jackson, Triumph Furniture, UK

Oded Cohen, TOC Strategic solutions, Israel

11 November, 2015


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TOC Practitioners Alliance - TOCPAwww.tocpractice.com

Andrew Jackson

With over 30 years experience in the office furniture industry;Andrew backs his drive for innovation, quality and

improvement with TOC practices.

After years spent as a production manager, he is in the perfectposition to continuously challenge our production and designteams to deliver on new product ranges. In 2011 he introduceda comprehensive One Stop Shop product portfolio all

designed and manufactured by Triumph. This product portfoliois suitable across; office, leisure, health, government sites andeducational establishments.

Today, Andrew directs the Triumph design team and isencouraging exciting product designs for Accommodation andEducational projects to complement the existing ranges.

[email protected]


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Oded Cohen

Oded has over 35 years of experience in developing,teaching and implementing TOC methodology, solutionsand implementation processes working directly with Dr.Goldratt all over the world. Among the countries to which

Oded brings his expertise are the USA, Canada, Japan,India, China, the UK, Poland, Russia, Ukraine, Colombia,Chile, Peru, Turkey and many others.

Oded has authored multiple TOC articles and contributedto numerous TOC books.

Oded in the is the author of Ever Improve A Guide toManaging Production the TOC Way, published in June2010. Oded co-authored the book Deming & Goldratt: TheTheory of Constraints and the System of ProfoundKnowledge The Decalogue.

Together with Jelena Fedurko Oded has co-authored thebook Theory of Constraints Fundamentals.

Oded is International Director of TOC Strategic SolutionsLtd and Founder and Co-President of TOCPA.

[email protected]


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Triumph Furniture

Triumph is one of the UKs leading furniture manufacturers.

Nearly 70 years of experience combined with an unstoppable drive for innovation, ensuresTriumph Furniture continues to win high profile contracts and awards. From family runheadquarters in South Wales, our design teams focus on style and quality translates intohighly effective work and breakout solutions for our customers.

Manufacturing an unrivalled range of products, Triumph Furniture succeeds in creatingefficient and motivating environments across the UK, Europe and Asia. Flexible and

reliable service makes Triumph Furniture as the leading choice for governmentdepartments, educational establishments and corporations. Triumph Furniture hasshowrooms in South Wales, London, Holland and Shanghai.

Turnover: 19m

No. of Employees: 258


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Triumph History Overview


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Triumph Furniture


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Triumph Furniture


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Merthyr Factory


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Dowlais Factory


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Triumph Furniture


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Triumph Furniture


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Triumph Furniture


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Triumph Furniture


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The Markets


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Triumph Today


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Brief History


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ales !rofile "#$# %&'"(

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Total Sales 1959 - 2016

&tartin' TOC

1()(


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The Journey with TOC

Key milestones on the journey:

1989 Manual DBR

1993 - Implementing Disaster - the SW package

1999 - Upgrading Disaster Replenishing Internal Buffers

2004 Lack of Subordination 2007 - Government Contracts and A&D Projects

2010 Implementing Symphony for Dowlais plant

2011 The New Triumph


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Milesto

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1/1/1979

1/1/1980

1/1/1981

1/1/1982

1/1/1983

1/1/1984

1/1/1985

1/1/1986

1/1/1987

1/1/1988

1/1/1989

1/1/1990

1/1/1991

1/1/19921/1/1993

1/1/1994

1/1/1995

1/1/1996

1/1/1997

1/1/1998

1/1/1999

1/1/2000

1/1/2001

1/1/2002

1/1/2003

1/1/2004

1/1/2005

1/1/2006

1/1/2007

TotalSales

19

59-2016

1()(

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2007

1(((

2004

2

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The *ntroduction of TOC

April 1989 TOC presentation at Merthyr Tydfil

Recognizing the need Shorter Lead Time anddelivery consistency

Summer 1989 - Jonah Program (JP) 2 Directors

- Production and Finance

Implementing DBR

Production and Logistics managers to JP


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21

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1/1/1979

1/1/1980

1/1/1981

1/1/1982

1/1/1983

1/1/1984

1/1/1985

1/1/1986

1/1/1987

1/1/1988

1/1/1989

1/1/1990

1/1/1991

1/1/1992

1/1/1993

1/1/1994

1/1/1995

1/1/1996

1/1/1997

1/1/1998

1/1/1999

1/1/2000

1/1/2001

1/1/2002

1/1/2003

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The evolution of TOC within Triumph reflects the evolution

of TOC globally

Triumph: Openness to own problems and challenges

Willingness to check what TOC had to offer

TOC: 1986 - TOC and the 5 steps of focusing

1987 Jonah program (based on GSim)

Capacity Constraint and Market Constraint 1991 - The move to TP Thinking Processes (any constraint)

1991-3 Developing Disaster S/W for managing production

The -ink to TOC Bio.raphy


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tartin. with !roduction

Production needed a change: Shorter LT and Reliability

Before 1980 QLT = 12-20 weeks

1980 QLT = 6 weeks

1989 Sales announced 7 days LT for high runners

Implementing DBR

Support by the Finance Director - Throughput Accounting

Measurement and Bonuses

Results and Challenges in production Yes, the Constraint moved to the Market


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The +reen Curve

From 1983 it became apparent that OPT could assist in

achieving improved performance in a short time, butthereafter the system went into financial stagnation.

This was recorded in The Goal,

The constraint moved from production (capacity) to the

Market

To address the market constraint - TOC recommended to

capitalize on the improved logistical performance.

But, in reality - the expansion of TOC from production tomarketing and sales was not that easy


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"##' / *ncreased fierce

competition Currency Crash of the Pound versus the Euro

The main competitor had significant export

They launched price war Triumph was squeezed between two major players

The company was heading to a real trouble

Marketing could not come with any ideas to increase sales. At the same time production and logistics continued to

improve there performance trying to support by having

outstanding service. That raised the need for a better IT System to manage

Production and Logistics


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A oftware called 0Disaster1

TOC started with OPT (1975) Creative Output

In 1986 Eli Goldratt stopped the selling of OPT - no

more software.

Apparently Jonahs needed software to manage their

production AGI built a separate unit to develop, market and service a

newly built software (less complicated than OPT)

Eli Called it Disaster (for educational reasons)


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*mplementin. 0Disaster1

1993 Development Partners

The Drum was given to the Assembly (based on Due Date

for loading trucks) Daily material release used the Rope (4 days)

Bonus scheme based on full trucks dispatched on time.

Worked exceptionally well but obsolete itself.

1999 - Introducing replenishment buffers to create instant

availability for high speed items:

FG

Component store before painting After Blanking

Worked well for production but had NBRs with Wholesalers


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2ecessary 3ut not sufficient

The Improved performance kept the company alive but incontinued struggle for survival

The Market is and has been for the last 25 years the primeconstraint of the company

The core problem of the company is not the constraint. It is

the conflict that prevent addressing the constraint.

There was no Silver bullet for Triumph. The competition was too strong and Triumph missed the train

during the late 1980s. The gap was too big to close.

There were two conflicting approaches:1. Demand production to reduce cost

2. Develop ideas that can increase sales


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The sad reality of not

sortin. out a core pro3lem

You can ignore the core problembut the core problem will not

ignore you


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&''4 / -ack of u3ordination

The company desperately needed sales

Senior Management focused 100% on Sales

Production was left to run on their own

There was lack of subordination to the principles of

managing the flow the TOC way.

There was cheating on the material release

There was pursue of local optima such as Batching

Buffer Management was just chasing out blacks, no POOGI

The culture of production management turned into bullying

All lead to deterioration of the outstanding DDP


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&''4 % &'"$

The 9/11 caused a major collapse in the market

Need to develop a full direction for the company to get

more sales Developing of the sales process

Exploring Export

Developing the Government Sales Developing new line for the A&D segment

While sales grow the sales process was allowed to take

second place and eventually failed. 2012 starting to implement a sales process (adapted

from Balliistix) that has started to work in 2014/5


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The ma5or learnin. from

the 5ourney

Building the operational excellence has been not easy but

achievable.

Lack of ideas what to do when the constraint moved to themarket.

For over ten years the company exploited every idea and

opportunity to address the market constraint. Eventually, the company has developed its own sales

machine. It has started bringing in more sales.

An important mindset change: stop fighting with thecompetitor, focus on what you can do to address the

market constraint.

Th 5 l i f


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While the market constraint hit badly, there was no internalagreement on the way ahead.

TOC contributed significantly to the company and tomanagement:

Improved Logistical performance

Bringing simplicity to the complex environment of the T

plant Creating a simple and practical language

Provided the focus for outstanding performance (LT and

accuracy of delivery) Actually, the improved production salvaged the company

from going under.

The ma5or learnin. from

the 5ourney


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21

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Ma5or6

!*sof

theJourney

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

1/1/1983

1/1/1984

1/1/1985

1/1/1986

1/1/1987

1/1/1988

1/1/1989

1/1/1990

1/1/1991

1/1/1992

1/1/1993

1/1/1994

1/1/1995

1/1/1996

1/1/1997

1/1/1998

1/1/1999

1/1/2000

1/1/2001

1/1/2002

1/1/2003

1/1/2004

1/1/2005

1/1/2006

1/1/2007

/ /

A

nn#alsa

lesperemplo$ee1()*-2


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Ma5or 6!*s of the Journey

15%

20%

25%

30%

35%

40%

,abo#r cost as a'e of sales 1(2 - 201


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Ma5or 6!*s of the Journey

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

&toc/ al#es 1(5( - 201


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The 2ew Triumph % &'""

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

22,000,000

1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016

&ales 2012-201

Sales 2012-2016


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The 2ew Triumph % &'""

-100,000

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016

Profit,oss 2012 - 201


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7hat is ne8t9

There are more things needed to be done:

Stock Management

Improving Distribution Reduce Lead Time

Production Planning and Control in theDowlais Plant

Continuing to Invest in production process

Expanding into China

The TOC !erspective


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The TOC !erspective

the 6ey -earnin.s

Build Capitalize - Sustain

TOC Needs: capability, willingness andconfidence

The determinism to continue to fight for

keeping the company alive.

Use whatever is available in the TOC

knowledge and experience to achieve theobjective

08-Andrew Jackson-Oded Cohen_21 TOCPA_UK_11 November 2015 - V3_for Web

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