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TOC Articles |
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Managing Distribution According to TOC Principles
by Amir Schragenheim
The current practice of managing supply chains
It is Wednesday afternoon. I'm entering the grocery store and want to purchase some green peppers. However, they don’t have any on stock. I can’t find any good looking tomatoes either. I'm continuing to the office depot store. I heard great reviews about a new mouse that Microsoft issued and I would like to get one. However, I come to an empty shelf with only the item description stating "out of stock". How many times did you go to a shoe store, tracked a wonderful pair of shoes you wanted to purchase but they didn’t have any in your size? Why do stores don’t keep the right stocks to fulfill the demand? Why can't they do anything right?
Read more >
Misalignments between responsibility and authority
by Dr. Eliayhu Goldratt
Suppose that you have some responsibilities - a safe assumption no matter who you are or what you do. Now imagine that when you try to do your job (deliver on your responsibilities) you realize that certain actions, which are absolutely necessary, are not under your authority. You are not allowed to do them without asking for somebody else’s approval, which s/he may or may not give you.
Do you think it’s fair to ask you to be responsible for things that are not under your authority? Can you be empowered to take on more responsibility, if it is not perfectly matched with the required authority?
Read more >
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Dr. Goldratt's Viable Vision Events |
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Is it possible to improve the performance of your company to have in less than four years, net profit equal to its current total sales?
Dr. Eli Goldratt talks about it in his NEW 8 minute video.
During this one day event, Dr. Goldratt will reveal his Viable Vision offer, a strategy and specific tactics to achieve, within 4 years, net profit equal to your total current sales. This is NOT a seminar; it's an opportunity to hear the world renowned business improvement expert, Dr. Goldratt, describe real cases and outstanding results. The Viable Vision Offer Event is the start to discovering how to break through your constraints using the scientifically-based, practical, Viable Vision concepts.
The next opportunity to attend one of Dr. Goldratt's Viable Vision offer events will be:
Aug 14, 2007 - Buenos Aires, Argentina // register
Aug 17, 2007 - Sao Paulo, Brazil // register
Sept 6, 2007 - Mexico City, Mexico // register
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| For more information on Goldratt's Viable Vision click here > |
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Odyssey Program for Young Adults
The Odyssey Program was initiated ten years ago by Dr. Goldratt. He did this in a quest to teach thinking skills to young adults. The Odyssey Program development followed requests by successful TOC practitioners wanting their family members and close friends to receive the opportunity to explore the world of TOC. During the Odyssey Program the basic Thinking Process Tools are applied to clarify and reveal the stepping stones required to achieve fuller life. There is no time pressure during the Program; participants will have time to explore their chosen subjects. The Odyssey program further provides the opportunity to meet young people from around the world and be exposed to alternate ways of thinking, helping you review your life and provide a new perspective on your choices. Alumni friendships from around the world have proven to remain long after the Odyssey Program is concluded.
Dates:
Freshmen: July 22 – July 27
Alumni: July 27 – July 30
Location:
The Netherlands |
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For More details, please click here >
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Project Flow 2007
Annual Conference is presented by Realization
September 6-7, 2007
Philadelphia, PA
Special Features:
- Keynote Address by Dr. Eliyahu M. Goldratt
- Complimentary Pre-Conference Workshop: "Resource Management in Multi Project Organizations", September 5.
- Networking Opportunities: Share ideas and develop contacts with progressive managers and executives from other organizations.
- 1:1 Discussion with Realization Technical Personnel: Our technical and field personnel will be available for 1:1 discussions to answer your specific questions.
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Click here for more details > |
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TOC Insights - Unlimited Web Access one year! |
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 NEW OFFERING!!!
Access all the sessions of the TOC Insights over the internet from anywhere, at anytime, for anyone!
The complete set of the TOC Insights is now available over the web for one year to an UNLIMITED number of users for US$9,900.
Not familiar with TOC Insights? The TOC Insights are the latest and most extensive explanation of the TOC analysis and solution for Managing Operations, Managing Finance, Managing Supply Chain and Managing Projects & R&D. These four sessions are developed in Flash and were developed for "Self-Learning" as well as group training. The content includes many examples, case studies and even simulations. Each of the sessions takes approximately 3 to 5 hours to go through (depending on your current level).
Each session is organized to answer in sequence the following five questions related to the subject matter of that session:
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Why change? - What Undesirable Effects exist within Managing this function
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What to change - What is the root cause of these UDE's (the erroneous assumption and related policies, measurements and undesirable behavior)
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What to change to - What should be the "New Rules" to achieve the Desirable Effect?
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How to cause the change - What is the implementation steps to implement the changes in rules and achieve the desired effects.
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How to achieve a "Process of Ongoing Improvement" (POOGI)
The TOC Insights are available in 3 formats: DOWNLOAD, ONLINE WEB ACCESS, CLIENT SERVER
For a Free Preview, please CLICK HERE >
Available languages: English, Chinese, Czech, German, Hebrew, Japanese, Korean, Polish, Portuguese, Russian and Spanish. |
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The Goal movie
Buy two, get one FREE for July only!
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Regular price 895.00 USD
Special Buy 2 Get 1 FREE
Order >> |
Buy 2 get 1 Free!
Buy 4 get 2 Free!
Buy 6 get 3 Free! etc...
This special offer is available only though July 31, 2007.
In order to get Free DVD, please order the complete number of DVDs you want. For example, if you want to buy 2 to get 1 free, you need to add 3 DVDs, or if you want to buy 10 to get 5 free you need to add 15. |
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New Book - Revised edition! |
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TOC Executive Challenge: A Goal Game (CD Rom and User Guide)
by John Tripp
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This user guide, and accompanying software, gives you an opportunity to test Goldratt's Theory of Constraints (TOC). Presented in an enjoyable and easy to use format, this user guide and game puts you in charge of your own production plant (from purchasing raw materials to selling finished goods). You are lead through a series of 7 challenge games that teach the different aspects of the TOC processes and shows you how to repeat the successes achieved by plant manager Alex Rogo, as portrayed in the business book best-seller, "The Goal".
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Spreading the word about TOC |
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At first glance the results of many of the implementations of Theory of Constraints sound too good to be true, however, the results achieved by organizations all around the world can no longer be dismissed. It is undeniable that these amazing results have been achieved in a huge variety of environments. But perhaps you still doubt that it can be the same in your environment; perhaps you are unsure if the change will work in your situation.
Dr. Goldratt has developed the complete strategy and the detailed tactics required for many companies to achieve profits never before believed possible. He will explain exactly the how and why for each step required to move a company from their current situation to a totally different, exciting and profitable situation in a new program to be launched via a world wide web program in 2008.
The level of detail and amount of knowledge is huge, so during the series Dr. Goldratt will assume that the audience understands the basics of the TOC applications for production, project management and distribution. If you would like more information about this methodology click here.
Please stay tuned for more information about this exciting new offering from Dr. Goldratt. |
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| News from the TOC International Certification Organization (TOC-ICO) | |
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2007 Conference Dates & Locations
Lifetime Membership
2007 Conference Dates & Locations:
The TOCICO Conference 2007 will be held in Las Vegas at the Planet Hollywood Hotel and Convention Center from November 2 - 7, 2007.
The Program Outline is:
Friday, 2nd Nov - TOCICO Certification Exams and Committee meetings
Saturday, 3rd Nov - Dr. Eli Goldratt TOC Expert Upgrade Day 1
Sunday, 4th Nov - Dr. Eli Goldratt TOC Expert Upgrade Day 2
Monday, 5th Nov - TOCICO Conference Day 1 (Three tracks for New TOC BoK developments, Case Studies and Certification Review Workshops)
Tuesday, 6th Nov - TOCICO Conference Day 2
Wednesday, 7th Nov - TOCICO Certification Exams and Advanced 1 day Workshops
Lifetime Membership:
The TOCICO organization is pleased to announce that for a one time payment of $1500, you can become a Life Time Member and never pay membership again.
If you have already paid for this year check with the TOCICO office and this year's payment will be deducted from the $1500. Please contact admin@tocico.org (+1 202 962 0193 ) or visit www.tocico.org to download a form if you are interested in applying for this new offer.
Click here to download a form >> |
 ANY 2 years of the TOCICO DVDs with 30% discount
This Special Promotion Package includes any two complete sets of the TOC-ICO Conference DVDs. Save USD 179.40, when purchased at the same time. (Regular price: USD 598.00)
Place any of the following TWO items* in your shopping cart:
and a 30% discount will be automatically applied.
* Discount will only show when placing TWO items at regular prices. |
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| | | | TOC Success Story at Caser
Caser is an insurance company based in Spain. Its software division is responsible for development and implementation of IT applications to support its businesses. Over 150 Caser professionals, as well as multiple vendors and contractors, work together on many concurrent initiatives to develop and implement these applications.
The Execution Problem: Only 30% of projects were completed on time; average cycle time of four months.
Execution Management Results: With execution management, 90% of projects are completed on time with a 25% reduction in cycle time (from four to three months).
Manuel Blanco, managing director of the software division describes, "Since business results depend upon information systems and applications deployment, it is mission critical for Caser that IT meets its target dates. I know the true status of all my projects in minutes." Alvaro Valdes, who manages the project-pipeline, adds: "We have improved the performance of our project teams, and projects are under control.?
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Colors Fruit Case Study
Company
Colors Fruit, a distributor of fresh fruits in South Africa
The TOC solution
In response to the identification of the market as our systems constraint, we determined that an unrefusable offer had to be generated for a chain of retailers supported by the distribution solution of TOC and the Symphony buffer-management software by Inherent Simplicity.
The market offering
Our offer was essentially to go to a store, analyze his historical sales and margin performance in his fresh-produce department, and offer to guarantee a minimum of 10% more return from the same shelf space. The achievement of this “guarantee” rested on our ability to respond quickly to actual POS data: requiring at least daily deliveries, 7 days a week, on a maximum of a 24 hour lead time (from sale to replenishment). We also offered to take back any waste and/or produce passed its sellby date. We shared additional Margin generated above the 10% on a 50:50 basis. E.g if a stores sales for the year are R100,000 above the historical sales plus 10% (the base), and his historical margin% was 25%, then there is an additional R25000 Margin generated by the model (we assume the historical margin % for this calculation) – we then split this amount 50:50 – so, in addition to the 10% guaranteed increased income, he will get an additional R12500.
The use of software and the value it brought
Once the offer was accepted (we have had a very high success rate with our offer) Symphony was the key enabler to allow us to effectively manage the replenishment model. Without it we would not have been able to work in a systematic way around replenishment decision-making and in all likelihood would have failed in our quest. Symphony allowed us to systematically manage the process and deal effectively with the complexity of multiples of stores and sku’s.
Bottom line results
The most effective measure of our success is in the sales growth achieved. Sales overall are up by 36% over the past 10 months (our best growth store is running consistently at 250%). The stores have earned, in terms of margin, 18% more income for the shelf space. None of the stores failed to achieve the guaranteed 10% increase in sales.
Click here for a summary of the results and lessons learned >
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