TACTics Journal

A Publication for and by TOC for Education Practitioners

January 12, 2001

 

CONTENTS

Networking

(1)          Top Down, Or Bottom Up?, Kathy Suerken

(2)         POOGI Forum Letter #12, (Part 1), Eli Goldratt

Connections

    (3)      5th Annual TOCFE International Conference/First Annual TOCFE International Student’s Conference, Cheryl A. Edwards

Editor’s Notes

    (4)      Kay Buckner-Seal, Cheryl A. Edwards

 

NETWORKING

(1)        Top Down, or Bottom Up?

From Kathy Suerken

 

Have you ever tried to push TOC from the bottom up in your school system?  Even those in our network who are at top management levels of school districts probably see themselves connected to a larger, higher system to which they are held accountable and which they would like to see running on TOC.  Therefore, I think our readership will find the following essay highly relevant as well as thought clarifying and (therefore) thought provoking.

 

When I was trying to move my own district from the bottom up as a part-time classroom teacher (sound ludicrous?), I frequently thought I was myself enrolled in “the school of hard knocks.  After reading this essay, I much more fully understand “why” the failures and why the successes.

 

This essay written by Eli Goldratt was recently distributed to a group of business people with whom he has been corresponding since his satellite program was launched.  Eli calls this dialogue network the "POOGI Forum" as he is using it as one way to keep the TOC body of knowledge on a Process Of OnGoing Improvement.

 

It is my assumption that discussion among us relative to the profound knowledge within this essay will significantly enhance the application of TOC to the world of education systems.  In order to achieve that, we need your thoughts/responses.  You can share them directly with the network through TACTics or “off the record” with me at suerken@nwfl.net.  I will forward your messages to Eli but please send them through me as I need to learn from your ideas to ensure that TOCFE is also on a Process Of OnGoing Improvement.

 

Due to the length of the article, we are dividing it into three installments.

 

(2)        POOGI Forum Letter #12 (Part 1)

By Eli Goldratt

 

To POOGI Forum Members,

It's about time to address the question that bothers most of us: How to implement a holistic approach from bottom up?  How can a relatively low-level manager cause hes (his/her) whole organization to change?

 

Why is it such an important question?  Why is it that advocates of TOC, even if they are relatively low-level managers, are so concerned about transferring their whole organization rather than concentrating their efforts on improving their area of influence?  Is it because unless the whole organization adapts TOC, no section of the organization can implement it and realize major benefits?

 

That is definitely not the case.  For example, an organization can implement TOC just in production while all other functions of the same organizations are still deeply immersed in the cost world.  TOC can be implemented in just one plant out of many and, as described in The Goal, have a major impact on the bottom line while all other plants are not even aware of TOC.  Moreover, there are many cases where only one department within a plant have implemented DBR and Buffer-Management and drastically improved its performance.  As a matter of fact, there are numerous cases where not a whole application but just one concept had been implemented, like cutting the batch sizes or exploiting a bottleneck.  The same is true not just for production but for all other TOC applications; even partial implementations bring substantial benefits.  So why are we all so concerned about finding an effective way to transfer an organization from bottom up?

 

I think that it is because, by now, we are all painfully aware of the X-Y syndrome (the X-Y syndrome was described in POOGI Forum Letter, # 8).  It is the phenomena where X is improving, and Y is (now) the constraint.  X, being on the holistic approach, realizes that further improvement to the company's bottom line depends on Y improving its performance.  X is pressing on Y to use TOC in order to improve.  Y tries to explain that "it won't work here, we are different."  War starts between X and Y.  A war that usually ends with X being defeated and the TOC implementation stagnates or even disappears.

 

Let's investigate the X-Y syndrome in more depth.  There are three questions that beg an answer:

1.    Why does X go out of hes way to poke Y?

2.   Why doesn't Y accept X’s common-sense recommendations and improve?

3.   Why does X lose the war?

 

At the beginning of this year I invested a lot of time communicating with dozens of Xs trying to figure out the answers for the above three questions.  Thank you POOGI Forum members for your open and candid collaboration.

 

As for the first question there are three plausible answers:

1.    The fear that major improvements in one area will lead to a real damage somewhere else.*

2.   The fear that corporate will "trim" the excess capacity that have been revealed by the improvements.

3.   The frustration that so much more can be gained and just because of "stupid inertia of Y" this real potential is wasted.

*Footnote:  There is one single case where it can and does happen.  When production feeds distribution.  For the full analysis and solution for this case see Chapters 16 and 17 of Necessary-but-not-Sufficient.

 

From my extensive communication I found that in the vast majority of the cases, answer # 3 was the dominant factor.

 

This fact surprised me.  We are told that when there is a threat on security, the desire for security becomes the main motive.  What we witness here is that the desire for satisfaction (reason #3) is the overwhelming motive.  So either the desire for satisfaction is much stronger then the desire for security or that the Xs do not perceive a real threat on their security.

 

It might be that both explanations are correct since, in the vast majority of the cases I examined, there was no threat on X.  Initially Y (and anybody else in the company) did not put any pressure on X to revert back to tradition.  On the contrary, there was a broad recognition of the achievement of X.  The situation started to deteriorate as a direct result of X going out of hes way to poke Y to improve and at the same time poke top management to change rooted policies and measurements.  Does it mean that partial implementations of TOC are secured?  I don't think so since X is typified by a strong motivation to improve, that is what caused hem (him/her) to start the implementation in the first place.  This same motivation is the one that makes reason number three so dominant and the clash with Y is almost unavoidable.

 

End Part 1.  Next week's installment will address the other two questions.  How would you answer them?

 

CONNECTIONS

(3)        5th Annual TOCFE International Conference/First Annual TOCFE  International Student’s Conference

From Cheryl A. Edwards

 

The best way to predict the future is to create it through TOC."

TOC for Education, Inc. presents the 5th Annual TOCFE International Conference and the First Annual TOCFE International Student’s Conference!

 

Date:                                June 25-28, 2001

 

Location:                                Detroit, Michigan USA

 

Hotel:                                Northfield Hilton

                        5500 Crooks Road

                        Troy, Michigan 48098

                        248. 879. 2100

The Northfield Hilton is adjacent to Interstate 75 at Crooks Road, Exit 72

 

Reservations:                                1. 800. HILTONS

                        Ask for TOC for Education’s special room rates.

                Single or Double Occupancy

Per night $139.00 U.S. + Tax (6% Michigan Sales Tax and 7% Occupancy Tax).  This rate includes breakfast for two.

 

Transportation:                                Detroit Metropolitan Airport (DTW)

 

EDITORS’ NOTES

(6)       Kay Buckner-Seal, Cheryl A. Edwards

 

We would like to thank Eli Goldratt for sharing a letter from the POOGI Forum with us this week.  It is a privilege to publish his work in TACTics for he has provided us with a unique opportunity for learning and valuable exchange.  Think about the last two questions concerning the issue: How to implement a holistic approach from bottom up?:

     Why doesn't Y accept X’s common-sense recommendations and improve?

      Why does X lose the war?

Kathy asks, “How would you answer them?”  If you would like to share your responses directly with the network through TACTics, then send them to Cheryl A. Edwards, 2253 S. Hill Island Rd., Cedarville, MI 49719, USA.  Or, send hyperlink to <redwards@sault.com> or <bucknek@resa.net.

 

Remember, if you would like to keep your responses off the record” then send it to Kathy at, suerken@nwfl.net.

 

As always, we are eager to hear from you!