www.tocpractice.

com

8th International Conference of the

TOC Practitioners Alliance - TOCPA

26-27 October 2013, Moscow

The starting steps

of a pilot project

Natalia Anisimova,
School of Modern Management, branch of
Novosibirsk State Technical University, Russia
October 2013

Team of pilot project consultants

NATALIA ANISIMOVA School of Modern Management, Novosibirsk State

Technical University.
anisimova-nv@yandex.ru

MARINA HAYRULINA School of Modern Management, Novosibirsk State

Technical University.
proreg5@mail.ru

KISLITSINA OLGA School of Modern Management, Novosibirsk State Technical

University.
olkis@ngs.ru

ALEXANDRA BRYZGALOVA Uniscan Bryzgalova@polus-st.ru

8 TOCPA

Before project start

6 layers of
resistance to
change

5 focusing

TYPES
of constraints

steps

TYPES
of production
ENVIRONMENTS

Client Reinforced Concrete

Plant

8 TOCPA

Baseline Situation: planning

CURRENT ORDERS

December
November

TO MAKE PEOPLE
BUSY

October
September
August

Monthly plan
UPDATING

FORECAST

July
June
May
April
March

Annual plan, m3

February
January

FORECAST
8 TOCPA

Baseline Situation: plan

assessment
%
M3

% OF ORDERS FULFILLMENT IN TIME

DAYS OF DELAY OF ORDER
FULFILLMENT ON TIME
LOST PROFITS BECAUSE OF STOCKOUTS
8 TOCPA

Each client is unique

Recent ownership changes

Mixed environment (+S)
Small number of work cycle activities
Frequent changes of shipment
deadlines by clients

8 TOCPA

The simultaneous production of

products for both warehouse and
order fulfillment
(some clients do not wait)

(some clients prefer to take

products by parts, as and when
needed)

UDE 1: Very often there is a stockout of some SKUs

UDE 4: Casting boxes often are

occupied when they are needed

UDE 2: Too many SKUs with high

inventory level

UDE 5: During the season too much

overtime

UDE 3: Often clients, who place a

large complex order, do it only in
case of availability of all needed
SKUs

UDE 6: There are too many large-size

products that are not shipped out from
warehouse on time by the clients
UDE 7: Priorities of order fulfillment
are continuously changing

8 TOCPA

Inventory cloud

Not to lose any

client

D
Have a high level of
inventory in the
warehouse

Make profit
C

Ensure effective
use of working
assets

Avoid having a
high level
inventory in the
warehouse

8 TOCPA

Selection of TOC tools

STANDARD
UDE

STANDARD
CLOUD

STANDARD
ENVIROMENTS

STANDART TOC TOOLS ?

8 TOCPA

 solutions
Daily consumption
(withdrawal) from buffer

TOC solutions for

III Include to production plan

TARGET BUFFER LEVEL

Production
II On the way to
the buffer

I on hands

TOC solutions for

Shipment date
Issue
raw
materials

0-33%

34-66%

67-100%

Delivery

Time
8 TOCPA

Pilot project tasks

PLANT

To verify,
check,
get

knowledge,
procedures,
tools
8 TOCPA

Start of the
Pilot Project

8 TOCPA

Mixed environment: technical

challenges
the need for simultaneous planning for the same SKU for
both and environments
complexity of order status monitoring
the need to divide the finished products accepted to the
warehouse in linkage to the specific clients and orders
Solution: production planning for both environments in one
file

8 TOCPA

Mixed environment

TOCPA

Small number of work cycle

activities
Manufacturing technology
RM
Wareh
ouse

Production
of
reinforcing
steel
2 hours 1 day

Developme
nt of
strength

Molding

1 day* quantity of
products/number of molds

FG
warehous
e

3 days

D l

Shipment date
RM issue

0-33%

34-66%

67-100%

Delivery

Time
8 TOCPA

Solution: diagonal buffer

8 TOCPA

Frequent changes of shipment

deadlines by clients
The warehouse is not
bottomless
Stringent requirement on
finished product storage

High cost of crane operation

8 TOCPA

Cloud of reserves

B
Ensure inventory
availability at the
warehouse for the
clients that are not
ready to wait ()

D
To sell reserves of the
clients that did not
withdraw items from a
warehouse in time

Make profit
C

To be a reliable
supplier ()

To hold reserves for

special clients

8 TOCPA

Actions Taken

Daily monitoring of shipment deadlines

Reallocation of reserves
Sales managers trainings

8 TOCPA

The client is not unique

Dependence on 1 software and IT manager

Solution
Software development that will take into account
the "uniqueness" and "non-uniqueness" of the client
for:
The production and technical department, shops,
sales managers, logisticians and the warehouse.

8 TOCPA

Software: first results

0%

%
50%
100%
150%

8 TOCPA

Results of the pilot

projects starting steps:
A mechanism is in place to ensure transparency, visibility and
possibility of competent adjustments
Developed primary procedures

of internal management for sales,

production plan and procurement synchronization
Identified constraints that do not allow to the pilot project to provide full
benefits of the solution to the company.

Knowledge was transferred to the employees of the Company and the

implementation group was trained for the project roll-out across the
Company