One of the very first topics we identified and discussed was the reason we are in business, as obvious as that may seem. We decided we're in business to make money now and in the future (this is significant since growth is the primary driver underlying TOC). While all this may seem unnecessary, it's actually very important when you consider that you need your staff fully on board anytime you implement a new system. When was the last time that you and your staff actively discussed how essential the success of your business is to the futures of your staff and their families?
A well-executed TOC implementation will address this single point immediately. Profitability will remain a focal point throughout the implementation, as it should. This is the essence of a process of ongoing improvement – a continuation of why the business was started in the first place – to make money for all participants.
TOC logistics exist under a single premise. If you can look at your processes as a chain, the entire enterprise can only produce as much as the weakest link will allow. That weakest link is the constraint. This analogy has another critical meaning: pulling a chain is more effective than pushing it.
Next, we were introduced to a tool TOC practitioners refer to as the current reality tree (CRT). CRT is used to evaluate where the industry currently is and where our company is in relation to the industry. We then asked, if we stay the same, what does our future look like? These answers led us to the answers of a fundamental TOC question: Why change?
Once we agreed that there was a need to change our business to solidify our futures we started to identify what TOC refers to as undesirable effects (UDEs) that exist in our system (UDEs pronounced oo-deez).
With our businesses UDEs defined, the most undesirable of these were identified, and through another TOC tool called an evaporating cloud (EC3) we were able to break the existing conflict and determine the root cause of our UDEs. This supplies the answer to the second fundamental TOC question: What do we need to change?
Once we understood the root causes of our UDEs, we moved on to the next TOC question: What do we need to change to?
As a group we then structured our future reality tree (FRT). The FRT is an expression of the future that we desire. When we had completed our FRT we had a solid direction for our futures and our implementation. We had discovered the answer to "what to change to."
All of us knew we needed to change. Through the use of these TOC exercises, we had discovered information about our business that could secure our business now and in the future. From our detailers to our office staff, everyone was interested and excited about how we would answer the last question: How do we bring about the change we want?
The proper steps
We then were introduced to the five focusing steps (this term is from the book "The Goal," by Dr. Eli Goldratt) of TOC. These focusing steps are the foundation for TOC and would guide us through our implementation. The five focusing steps are used to answer the final TOC question: How do we sustain the change?
Step 1) Identify what is blocking the entire system. This is the system constraint.
Step 2) Exploit. Get the most out of the constraint by using tactics such as never allowing the constraint to sit idle.
Step 3) Subordinate everything else to the constraint. Make sure that the constraint is fully exploited by giving it the emphasis it needs to remove or minimize its limitations.
Step 4) Elevate the constraint. Do whatever it takes to perform at a higher level.
Step 5) Go back to Step 1. When one constraint is elevated, a new constraint will develop. Do not allow inertia to set in as the constraint moves within the system. Go back through the focusing steps in order to remain focused on the primary constraint. The point is to always remain focused on the constraint and to deal with it effectively.
Making the first move
As our meeting wore on we found that our constraint was almost too easy to identify. Our constraint was estimates.
We needed complete and thorough repair plans. We knew if we had everything we needed (parts, materials, supplies, etc.) when we needed them, technicians could simply go to cars and fix them. There would be no stopping, no delays and no need to have multiple repairs opened at one time. The technicians on our staff connected with this concept.
With our constraint identified the next step was to exploit. We structured a team to build complete repair plans. Their primary endeavor would be to completely identify everything we required to pull the repair through the system.
We also would need an effective way to schedule this team so the constraint would be worked on steadily.
Everyone at our store understood that to see our FRT come to fruition we had to subordinate to the constraint. It was challenging. Flat-rate technicians are accustomed to bouncing from job to job in order to make good pay. It takes a tremendous amount of effort initially to slow down at the front end of the repair process.
We committed people and resources to our constraint. We implemented TOC scheduling software to work on the constraint constantly. Other technicians were more than willing to lend a helping hand to do their part.
The approach worked. Everyone at our shop was willing to pitch in to increase our throughput. We were learning to subordinate to our constraint. We were on our way to using TOC to improve our processes and thereby grow.
Editor's note: The second part of this article will appear in the August edition of ABRN.
