Why successful Theory of Constraints (TOC) implementations fail after some time? Is there a common theme that jeopardise all TOC Implementations? In this presentation I answer these questions and propose criteria to avoid the pitfalls of successful implementations.

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REAL TOC
Why Successful
Implementations Fail, Fade or
Revert and What to Do About It
Presented By: Humberto R. Baptista
Date: June, 11th 2014

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TOCICO 2014 Conference
From Eli
• Three laws of good administration:
1. Be
Paranoid
2. Be
paranoid
3. Don’t be
Hysterical
Be sure the
initiative will
succeed
Be sure its
SUCCESS will
succeed
Stop looking for
negatives

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The problem
Successful
TOC
Implementation
Fades
Stagnates
Reverts
No Real
POOGI
(not even
close)
Time

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The Hypothesis
So many different
and diverse cases
present the same
behavior
A common and
systematic failure
cause

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Core problem
• Not abide to (at least) one of the Core TOC Values:
Simplicity
Consiste
ncy
Respect Variability Change
Newton (Principia)
N&S # 2, The Choice, …
SLP # 7,
The Choice
TQM,
Intro to
Science of
Management
The Choice,
Never Say
“I Know”,
SOSOG,…

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Case 1
Construction fixtures company (Brazilian branch of an
international group):
• Successful production functional implementation (up to the point
the production manager (youngest top manager locally) became
the Americas Production Director of the group)
• Sold by one consulting company with me as the lead consultant
• No continuation (failure to sell the natural continuation)
My personal dilemma
• Approach the company to sell the next step (Sales & Marketing)
• Let them be
Result Dismantling of the of local company and loss of knowledge
and jobs

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Cloud 1
Be Moral
Respect
the original
Contractor
Refrain from
selling the next
step
Try to sell the
next step
Help the
company
Consistency?

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Case 2
Large department store
• Beautiful (and difficult) pilot (significant increase in turns,
decrease in inventory, etc.)
• Strong champion
• Systems unable to deal with SKU on all the mix
My personal dilemma
• Change the S&T keel (possibly dulling it)
• Insist on the “standard” first entities on the S&T
Result Deceleration and distortion of implementation small results
See my presentation on TOCICO
2009 (Anatomy of a VV S&T)
See Silverio’s and mine presentation
on TOCICO 2014 (Pilots TOC:
navigating the Change)

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Cloud 2
Strong
Implemen-
tation
Support
Champion
Wait for SKU
system to be
programmed
Start
implementation w/o
full SKU support
Quick
results
(CfGS #5)
Variability?
See my presentation on TOCICO 2011
(Retail TOC – Get Your Hands Dirty on the
Implementation

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Case 3
Large apparel factory (integrated into a retail) :
• Strong implementation (unusual environment, quick results)
• Strategic position of the factory (supplied 45% of the retail’s
sales with – now – very short LTs)
My personal dilemma
• Fight the decision to lay off an entire shift (and more) or
• Take care of the many other important aspects in the
implementation
Result Deceleration of improvement (almost halted POOGI)
and 8.000 lost jobs.

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Cloud 3
Ever
Flourishing
Company
Protect the
project
Cater to other
elements of the
implementation
Make a stand
against layoffs
Protect
Company’s
future
Respect?

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Core Cloud
Long
Lasting
Impact
Secure
Relationships
Tolerate TOC
value(s)
violation
Be adamant
about TOC
values
Secure
Future

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Core Assumptions
Long
Lasting
Impact
Secure
Relationships
Tolerate TOC
value(s)
violation
Be adamant
about TOC
values
Secure
Future
- To be liked we must tolerate what other people do
- Unconditional love means accepting everything
- Without any of the TOC values wasting human potential is certain
- All TOC values are necessary to allow a very fast growth and high stability

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Evaporating
• Challenge the assumption:
• With:
• Therefore:
- Unconditional love means accepting everything
- Unconditional love means accepting everyone
Tolerate TOC
value(s)
violation
Protect people
from self-
mutilation

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What can prevent the problem
To implement:
we need:
• A clear shared CRT of the damage of tolerating TOC values
violation (have you ever done it?)
• Meet each significant potential violation (or past violation) with
unconditional love, meaning: making clear the damage
sustained by the person and
• Draw the persons’ cloud (as a dilemma, never as an
interpersonal conflict)
• Evaporate it and demonstrate Qualitatively and Quantitatively
(T.I.OE. if applicable) the superiority of the injection compared
with previous actions for the person.
Protect people from self-mutilation

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Thank You
• Comments, questions?

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About Humberto
• Husband and father changing the
world one person at a time
• Scientist seeking to apply science
to people’s endeavors
• Hunter of hidden assumptions
• Teacher, student and colleague of
students
• Strong believer of values over tools
• Practicing atheist and skeptic
humberto@vectis-solutions.com