Getting Started with TOC
Every organization embarking on a TOC journey faces different challenges unique to their circumstances. However there are several crucial steps that almost always increase top-level support, spread the right learning, and engender the buy-in necessary to pursue The Goal.
Prepare the Groundwork
Lay the Foundation
For more detailed implementation steps, conduct a TOC Feasibility Study
Prepare the Groundwork
- Get others involved - share TOC books, training, websites, videos, etc. with colleagues in other departments and functions to build broader support.
- Secure an Executive Sponsor, a business leader who will take personal responsibility for the TOC transformation. Ideally this would be the Owner, Chairperson, Managing Director, CEO or COO.
- Capitalize on a crisis to begin the transformation. This could be a working capital shortage, dismal profitability, poor customer due-date performance, high-stress high-workload environment, frequent internal conflicts, external crisis in the economy/industry, etc.
- If your company isn’t in crisis, focus attention on an emerging competitive threat or find a customer who is willing demand dramatically better due-date performance.
Lay the Foundation
- Educate your Top Team, including CXOs and all Department / Functional Heads via training, Goldratt Satellite Program and/or mentoring (about 8 days of training, spread over 1-2 months). Ensure team buy-In before proceeding further.
- Retain a TOC Advisor or Business Coach for smooth deployment.
- Align the top team to global, bottom-line oriented measurements (abolish KPAs).
- Identify your constraint(s), based on inventory accumulation, expediting trends and rated capacity.
- Identify your organization's core conflict
- Make it clear to all that layoffs are incompatible with TOC and that there are no plans to fire anyone (apart from non-performance)!
- Place expansion plans on hold - all non-essential new equipment, additional headcount etc. TOC implementation will almost certainly release significant spare capacity!
For more detailed implementation steps, conduct a TOC Feasibility Study