How to implement the TBLS strategy -
tactic workshop. Ricardo Anselmo de Castro
Abstract
The TBLS business strategy implementation
consists of 18 phases, 5 of which occur during the
tactic workshop (the others are described in the
strategic workshop). This paper shows «the how» of
the tactic workshop and establishes some links with
the author’s previous papers that explore certain phases of the strategy which are only mentioned
here.
Key-words: TBLS
To take the best
advantage of TBLS
it is necessary to
develop a strategic
workshop (discussed
in a previous paper),
but also a tactic
workshop – the
scope of this paper.
Up to three days, the
goal is to provide
high level training in
TOC, BOS, Lean
and Six Sigma
while,
simultaneously, to
run the last 5 phases
of the
implementation
itself. The entities
that should attend to
this event are: the
champion
deployment;
managers who
didn’t participate in the strategic
workshop and are
directly involved
in the selected
horizontal
process; and some
staff as
controllers. It is
assumed that prior
to this event the
strategic
workshop took place (otherwise it will not make
any sense). The opening of the event must be done
by the champion deployment (or even by the
system’s owner himself) so that everybody
understands that this initiative will have top
sponsorship. After this intro the first thing to be
done is:
14. Map the horizontal process (PH).
Please remember that one of the strategic workshop
outputs was: “horizontal process to be improved
defined”. One thing is to identify it; another thing is
to map it. This will allow a factual understanding of
what the process is. At this phase we also want to
pinpoint the high level variables that may influence
process’ effectiveness and efficiency the most. This
is an important exercise because companies can
only improve if their core processes improve. It is
assumed that the process is measurable and
causalities can be fairly proven. As a consequence,
people will visualize their process and share a same
understanding of where the constraint can be. The
most likely tool to be used at this stage is the
SIPOC diagram, but other different tools such as
going to Gemba or scatter/line charts may be
valuable as well. On the other hand, it may be also
necessary to validate in more precise terms what
value to the customer is.
The next figure shows a SIPOC diagram based on
the example coming from the “strategic workshop” paper. Please remember that the area which holds
the constraint is at the supplier and the identified
horizontal process is: “Receiving order,
transforming raw material “A” to finished goods and delivery“.
15. Truly pinpoint the constraint and establish a
future state.
This phase refers to the first of the five TOC’s focusing steps. The goal is to identify the constraint
and set logic objectives. It is assumed that every
process has a constraint and the system’s constraint lies in this process! From now on, everybody will
Build project
teams and execute
projects with no
interruptions, by
using a T, BOS, L
or SS tactic, until
the NC is no
longer the
constraint.
Identify the project
leader and the
champion to each
project.
Map the horizontal
process (PH).
Pinpoint truly the
constraint and
establish a future
state.
Identify and
prioritize projects
linked to the
constraint.
MO
NT
HL
Y M
EE
TIN
G
Efficiency: Total lead time = f(inventory, defects, setups, lot size,…)
Efectiveness: Due date performance = f(total lead time, slowest cycle time,…)
Customer
places the
order
Risk assess-
ment of order
fullfilment
Processingthe order
Transportand delivery
SUPPLIER
- Supplier A
- Supplier B
INPUTS
- policies
- materials
- equipments- know-how
- information
OUTPUTS
- due date performance
- no defects
CUSTOMERS
- The company
PROCESS
very well know, what “priority“ means.
The most likely tools to be used at this stage are
(use only one):
- Value stream mapping (VSM)
- Materials flow diagram
(better than VSM for a multiproduct company)
- Current reality tree
According to the example the constraint is
somewhere at the supplier. A decision was
made of what sub process the team should dig
further: “Processing the order”. The figure shows
a zoom in of this sub process with the use of VSM
(only a part is shown). Notice also that two goals at
the NC level were set: 7 days for the lead time and
99% for the due date performance. Both objectives
are considered aggressive. In the last figure of this
page, the areas circled in red correspond to the
constraint itself. It’s important to link the NC baseline and its objective and the horizontal
processes objectives. Logically, if the gap of NC is
at 7 days (for the lead time metric), the objective set
to the process must be approximately the same (in
this case – 7,5 days). In summary, in order to
achieve a lead time of 5 days we must act mainly in
the inventory after process I. Analogously, to
improve due date performance we must reduce the
slowest sub process cycle time – process III. At this
stage, we still don’t know how many improvement
projects must be deployed to attain these goals,
nevertheless, the constraint is identified and the
focus point for improvement projects is now clear.
Source: Nash, M. and Poling, S. (2008).
80%
14 days
Baseline
99%
7 days
Objective
19%Due date performance
7 daysLead time
GapMetric (Raw-Material A)
80%
14 days
Baseline
99%
7 days
Objective
19%Due date performance
7 daysLead time
GapMetric (Raw-Material A)
Minimum objective to
shift the constraint!
Processingthe order
Source: Nash, M. and Poling, S. (2008).
47 sec.
12.5 days
Baseline
33 sec. (because takt time = 38 sec.)
5 days
Objective
14 sec.Process III cycle time
7.5 daysInventory after process I
GapMetric (Raw Material A)
47 sec.
12.5 days
Baseline
33 sec. (because takt time = 38 sec.)
5 days
Objective
14 sec.Process III cycle time
7.5 daysInventory after process I
GapMetric (Raw Material A)
80%
14 days
Baseline
99%
7 days
Objective
19%Due date performance
7 daysLead time
GapMetric (Raw-Material A)
80%
14 days
Baseline
99%
7 days
Objective
19%Due date performance
7 daysLead time
GapMetric (Raw-Material A)
16. Identify and prioritize projects linked to the
constraint.
Once known the truly constraint the company will
list potential projects. Prioritization is made until all
resources are consumed. It is
assumed that resources are
available to execute the
selected projects and also that
there’s formal top management
authorization for deployment.
The phase outputs are: 1)
projects defined, 2) projects benefits quantified and
3) projects with low resistance to improvement. We
must not forget that the necessary condition to
approve any TBLS project refers to the “First time through improvement model” which states: “deploy
improvement projects ONLY where current
stability is lower than expected AND IF it’s a leverage point of the company (hot spot or
constraint)”. You may read the paper “First time through improvement model” for a more in-depth
reading. The criteria to prioritize projects are:
Level of instability felt by employees at the
constraint’s vicinity
Expected return (tangible or intangible)
Estimated project duration
As we can see in the next figure if stability IS NOT
under employees expectations one should not
deploy the corresponded project, even if there is a
great opportunity to make money. The priority
index is just the expected return over the estimated
project duration. The higher the ratio the more
attractive the project is. This ratio follows the
throughput accounting principle.
17. Identify the project leader and the champion
for each project.
The title is self descriptive. At this stage we also
want to establish a rough schedule to the project. It
is assumed that the champion and the team leader
are available, their competences and know-how are
not a concern and that formal authorization from
top management is not a problem.
As a consequence the most important projects are
populated with the best people. The next figure
shows the status of things prior to phase 18.
18. Build project teams and execute projects
with no interruptions, by using a TOC, BOS,
Lean or Six Sigma tactic, until the NC is no
longer the constraint. As a matter of fact, phase 18 occurs after the tactic
workshop. Suffice is to say that this workshop
should take place monthly as a simple monitoring
tool or as a deeper analysis tool every time that the
deliverables of the strategic workshop change
drastically.
CONCLUSION
The tactic workshop is an important tool and a
logical consequence of the strategic workshop. This
is when the rubber meets the road. The main
deliverables of this workshop are:
Horizontal process mapped (also useful for
future projects).
Truly constraint identified.
Improvement projects sign-off, process
objectives defined.
Champion and team leader assigned to
projects.
References
[1] Castro, Ricardo
A. (2014) O Proveito
da Dúvida – troque o
peixe pela cana de
pesca. Leanpub.
wk14 - wk21
Start Date
End Date
Project charter completed
by week 13
Observations
J. Smith
Champion
P. Munro
Team Leader
1. Inventory reduction
after station I
Approved projects
wk14 - wk21
Start Date
End Date
Project charter completed
by week 13
Observations
J. Smith
Champion
P. Munro
Team Leader
1. Inventory reduction
after station I
Approved projects
8000010800000No3. Project 3
5
7
b. Estimated project
duration [weeks]
70000
85700
Priority index
a. / b.
Yes
Yes
Stability in the vicinity
under what is expected?
350000
600000
a. Expected return [€]
2. Cycle time reduction in
station III
1. Inventory reduction after
station I
Potential Projects
8000010800000No3. Project 3
5
7
b. Estimated project
duration [weeks]
70000
85700
Priority index
a. / b.
Yes
Yes
Stability in the vicinity
under what is expected?
350000
600000
a. Expected return [€]
2. Cycle time reduction in
station III
1. Inventory reduction after
station I
Potential Projects
