14-Katlego Mabote - 27 TOCPA - August 2016 - South Africa
14-Katlego Mabote - 27 TOCPA - August 2016 - South Africa
14-Katlego Mabote - 27 TOCPA - August 2016 - South Africa
com
13th InternationalConferenceofthe
TOCPractitionersAlliance TOCPA
www.tocpractice.com
May2122,2014Johannesburg,SouthAfrica
www.tocpractice.com
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Leadership
Concept of Revenue Flow
Concept of Variation and Buffer Management System
Concept of Behaviour (Non Verbal and Verbal)
What measurement are Critical
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How
Muchwe
Spend
The
Difference
IsProfit
Moneytobe
Made
EspeciallyiftheMarketsareopenforMoreVolume
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or
Less
The
SPENT
become
Fixed
The
Difference
THENWhatisNEXT.
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or
Less
These
become
Fixed
The
Difference
TheLoss
THEN:COMESTHEWORSED
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or
Less
These
become
Fixed
ThenTHE
SpendCant
be
Increased
TheLoss
THEN:HOWDOWEANALYSEANDSPEND
OURTIMEINTHENAMEOFREVENUE
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or
Less
These
become
Fixed
Then
SpendCant
be
Increased
ThenWesuggest
theobvious:WHAT
ISTHAT ?
TheLoss
Analysethe
TOP5loss
contributing
factors
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or
Less
These
become
Fixed
Then
SpendCant
be
Increased
TheLoss
Or
Series
Parallel
13th InternationalConferenceoftheTOCPractitionersAlliance 2016/08/15
TOCPA
www.tocpractice.com
or
Less
These
become
Fixed
Then
SpendCant
be
Increased
TheLoss
PRODUCTIONVOICE
NONCOREVOICE
MoreSpendisWaste
d
BLACKBOXMentality
PolicingthePolicy
OneVOICE
Weneed
More
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THEN
OURVICTIMSOFWHATTOTHINK
Or
VICTORSOFHOWTOTHINK
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THEN:THENTOCANALYSETHELOSS
or
Less
These
become
Fixed
Then
increase
theSpend
TheLoss
TheWorld
ofVariability
andStability
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THEN:THENTOCANALYSETHELOSS
or
Less
These
become
Fixed
TheTOC
TechnicalLoss
Then
increase
theSpend
The1st lossisNOGuarantee
Availability
The2nd lossisNO
ProtectionofRevenueFlow
13th InternationalConferenceoftheTOCPractitionersAlliance 2016/08/15
TOCPA
www.tocpractice.com
or
Less
These
become
Fixed
The3nd lossis
Leadershipand
BehaviourThe
FIGHTAGAINST
POLICY
Then
increase
theSpend
The1st lossis
GuaranteeAvailability
The2nd lossis
ProtectionofRevenueFlow
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The4PillarsofTOCSuccess(Inputs)
Leadership
OptimisedFlowoftheWhole
Understand&AdoptTOCFrameofReference
ArticulateStrategy&SharedVision
Plan&CommunicateCaseforChange
IdentifyCriticalSuccessFactors&KPIs
ExhibitInclusive&CoachingManagementStyle
DevelopBigPictureFlowModels
DetermineSystemConstraints&Buffers
EstablishMOPictureforFlow
ConductHLAnalysis&ManagePriorities
EnsureVisibilityofSystemHealth
OptimisedFlow(TOC)
EstablishingaSystemfor
ExcellentResults
BufferManagement
Ops&Reflection
EstablishBuffer&ReplenishmentApproach&
System
EnsureMaterialBuffers&Replenishment
EnsureSkillsBuffers&Replenishment
EnsureEquipmentBuffers&Replenishment
ManageOperational&StrategicBuffers
ConductDailyOpsRoom&EstablishFocus
FacilitateRevenuebasedDecisionmaking
ConductReflectionmeetings/conversations
FacilitateDialogueprinciples
InstituteTeamworkdevelopment&
15
improvement
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TOCinLonmin
15
13
12
IN
750 000 oz
16
16
11
16
15
12
14
16
Leadership
12
13
12
10
13
13
12
OUT
15
14
Stable
Predictable
LowCost/oz
Optimised
Flow
4Pillars
Buffer
Management
Unstable
Unpredictable
HighCost/oz
Bottle3
+20%
Ops&
Reflection
Rowland
Bottle2
+10%
Saffy
4B
K3
Leadership
Flow of the
Whole
Buffer
Management
Ops & Reflection
18
Bottle1
90 Days
16
13th
InternationalConferenceoftheTOCPractitionersAlliance TOCPA
East 3
www.tocpractice.com
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FinancialvsOperationalLeverage
Savings
Expenses
Costs
Leverage
Inoneroombutin
twodifferentworlds
Margin
Turnover
Revenue
TrulyVariableCost
Leverage
$ $
Expenses
Costs
ReducingExpensesisaguaranteed
waytoimproveBottomLineResults
TheMoreweSave,themoreMoney
weMake
Costsareexactnumbers,derivedfrom
history
ErroneousAssumption:Revenuewill
remainConstant
Margin
Turnover
Revenue
TrulyVariableCost
TheMorewePutin,TheMorewecan
getOut
ErroneousAssumptions:
Production/Revenuewillincreaseas
wepredict
Theincreasedfundingisavailable
18
13th
InternationalConferenceoftheTOCPractitionersAlliance TOCPA
www.tocpractice.com
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20
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22
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Low Variability
Upward trend
Movement from Non performance to performance
A profit Game
th
23
13 InternationalConferenceoftheTOCPractitionersAlliance TOCPA
www.tocpractice.com
SaffyWetTonsHoisted2013/2014
8,000
7,000
6,000
5,000
Shifts
Workedin
ShaftRecord
Production
Requestfor
additional
supervisory
opsstaff
InitialTOC
training Ops
meeting
started
4,000
3,000
2,000
Fatality
1,000
7DayMoveAvg
Requested
22winches
forbuffer
R4,1m
Halflevel
storestobe
expanded
totwo
WeeksR7m
(Notdone)
Linear(7DayMoveAvg)
Sect54
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Pushed Hard to
Implement
TOC, partial
Success
New
Leadership
Introduced
25
13th
InternationalConferenceoftheTOCPractitionersAlliance TOCPA
www.tocpractice.com
4BTONSRESULTS
26
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E3NOW
27
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EdDemingonMeasurements
DrEdwardsDemingusedsay:97%ofwhatreally
mattersinanorganizationcan'tbemeasured.Only
maybe3%canbemeasured.Butwhenyougointo
mostorganizationsandlookatwhatpeopleare
doing,they'respendingalltheirtimefocusingon
whattheycanmeasureandnoneoftheirtimeon
whatreallymatters whattheycan'tmeasure.
Whywouldwedothis?We'respendingallofourtime
measuringwhatdoesn'tmatter.
EdDeming
FewpeoplerealisethatToyotadoesnotuseany
standardcostaccountingforitsdailyoperations
FounderofTotalQualityManagement(TQM)