TOC3 Australia

When can I expect to get these kinds of TOC results?
In most cases these results are achieved in less than 90 days from implementation. Some take as little as 30 days and others longer but rarely more than 120 days. Many experienced Theory of Constraints practitioners around the world help their customers achieve these results consistently.
 
How do we go about getting these kinds of results?
We suggest that if you haven’t done so already buy a copy of The Goal by Dr Eli Goldratt (we have the 3rd edition in stock in Australia) and/or Contact Us for a confidential discussion regarding your business situation and your priorities and we can determine what further information may useful to you. If you want to dive into something quickly we can discuss what would work best.  
 
Does TOC work with Lean and Six Sigma?
Yes and there is independent research to prove that you can multiply the benefits of any one methodology by combining with another. The research recommends that results come faster if you apply TOC first. Why? Lean and Six Sigma work on a process level, TOC works on the entire system holistically and focuses on and leverages the systems weakest link (constraint).  
 
Lean works to:
  • Simplify process
  • Eliminate Waste
  • Reduce flow time
6 Sigma works to:
  • Control Process
  • Eliminate Defects
  • Reduce Variation
TOC works holistically to:
  • Identify System Constraint(s)
  • Decide how to exploit the systems constraint(s)
  • Subordinate everything else to the above decision
  • Elevate the system(s)constraint
  • If in the previous step the constraint has been broken, go back to step 1.

Following the 5 Focussing Steps of TOC delivers:-

  • Focussed systemwide improvement
  • Total enterprise alignment
  • Fast bottom line results

TOC provides the focus as to where to apply the improvement effort with clarity and simplicity. Attempting improvement anywhere else than at the constraint (weakest link) in the system is wasteful. That is why we (and not only we) say start with TOC and then follow up with Lean and Six Sigma to capture further improvements in performance. TOC will quickly guide us to where to best apply lean or six sigma tools. Once we have improved that area or process TOC guides us to the next place for improvement.

Think of it this way. TOC acts to drain the "swamp". As the water level drains the first rock (problem area) appears. Fix that then drain some more till the next one appears. And so on. A process of continuous improvement.

We have already installed Lean and/or Six Sigma - can we expect further improvement with TOC?

In most cases yes and by quite a significant amount. Despite having high levels of maturity in other improvement methodologies it is still possible to extract significant improvement by applying TOC. Check out this case study Electrolux

When can we expect returns to cover your fees?
Payback is generally within 30 - 60 days.
What size companies do you work with?
Typical clients range between $10m to $80m annual turnover. Our smallest client had annual sales revenue of around $2m with 10 employees. Our largest client is a division of a global brand manufacturer with a workforce of 580, annual turnover of $200m+ and products exported to Europe and Asia (including China) and sold to all major appliance retailers throughput Australia and New Zealand.

Why is is Theory of Constraints relatively unknown?

Three main reasons.

First: it is not easy to introduce something new that goes against common practice. Depending on the nature of the concept that can amount to heresy. E.g. claiming that the earth is not the centre of the universe cost many early scientists their freedom and some even their lives. In a similar way today TOC flies in the face of common practice although it is grounded in logic that once understood is simply just common sense.

Second: Not every business wants to give away it's secrets to achieving breakhroughs in performance and results. They maybe replicated by their competition. The number of freely available case studies is limited.

Third: Whilst TOC is easy to learn it requires some expertise to install effectively and achieve the full benefits. Reading one book does not make one an expert but can certainly get you underway. So whilst there have been more than 5 million copies of The Goal sold worldwide the number of companies successfully implementing TOC is far fewer. This does not mean TOC does not work. To the contrary it does but it requires a solid grounding in the TOC philosphy, the change process and fluency in the thinking tools.     

 

 

 

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