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TOC Daily Operations Room Meeting

Arrie van Niekerk
Arrie van Niekerk

The daily Tactical Ops Room meeting is the best way to embed the Theory of Constraints (TOC) concepts in the every day running of your business

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TOC Operations: Daily Tactical Ops Room (Examples are for a Mining environment) The Theory of Constraints approach to Operational Excellence These 際際滷s have been prepared and presented by Arrie van Niekerk and form part of a series of presentations that were developed over several years. They represent a personal view of the subjects and are not to be interpreted as official documents of any kind. Heuristic FLOW 1 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
TOC in Context Own Distribution Suppliers Purchasing Market Processes Channel Heuristic FLOW 2 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Creating the desired Management Culture Heuristic FLOW 3 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Holistic Approach: Current Reality Measurements can help us We want all the parts to to align the parts, but it contribute to the whole often do not The parts must always do Over time, the parts what is good for the whole, develop measures that they NOT what is good for the believe are good for the parts whole, but in reality they are not fully aligned Look for the harmony (music) of the whole Heuristic FLOW 4 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
We Need to Find a Way to Make the Performance of the Bottleneck, the Status of the Buffers and the Alignment of the System Visible to All By creating visibility, we can ensure that everybody is aligned with the bigger picture and no actions will have a negative impact on the bottlenecks performance Heuristic FLOW 5 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Fluctuation in Complex Operations Fluctuation exists not only in terms of volume but also in terms of Chemistry, Physical properties like size distribution, morphological properties, etc A B C X D E F P R Z G H I Heuristic FLOW 6 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Stabilising and Enhancing a Complex Environment By having a key focal point and building protection into the system by managed buffers, the systems reliability, predictability and holistic performance are enhanced significantly. A B C X D E F P R Z G H I Heuristic FLOW 7 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
The TOC Process of Continuous Improvement 1. IDENTIFY the systems Constraint(s) 2. Decide how to EXPLOIT (Maximise) the systems constraints 3. SUBORDINATE (Align) everything else to the above decisions 4. ELEVATE the systems constraint(s) 5. If the constraint was broken, go back to step 1. Do not allow INERTIA to become the systems constraint Heuristic FLOW 8 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Tactical Ops Room Creating Visibility and Focus: Managing the tactical operation as a holistic system Based on the concept of a Common Relevant Operational Picture The Daily Check-in meeting that is built on openness, honesty, team work and good decision making Heuristic FLOW 9 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Generic Model for Ops Room SAFETY Quality Quality Flowing OUT Develop Ore Equip Stope Tram Hoist Plant Opening Up Product Body / Raw Pay Pay Boxes Ore Plant Material Face Equipped Pass Stock Length Panels Pile Flowing IN Total Subordination to the CORE PROCESS PEOPLE Material Equipment Utilities Services How are we doing this as a team? What is the music like? Heuristic FLOW 10 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
PURPOSE of Ops Room THE WHAT: The Primary reason for the existence of the Ops Room is to facilitate the optimization of the process flow through identified bottlenecks in the system THE HOW: This is achieved within a system that fully supports the flow and it is done through the desired behaviour of people It has to take place in a culture of openness and good visibility THE OUTCOME: The outcome of the ops room process is to have significant increase in the operational output of the system as a whole and to create an environment for consistency and the sustainability of that output Heuristic FLOW 11 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Three Objectives in One Focus on the flow of the system as a whole Manage the flow, through the constraints Get the job done Status of the system to support the value chain Buffering the flow and supply of all requirements Protective Capacity (flexibility) Human alignment with purpose Doing the right things in the right way The spirit or vibe of the system Heuristic FLOW 12 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Ops Room: Three Goals in One FLOW Constraint Rate SUBORDINATION Buffering and Protective capacity System alignment of all functions TEAM BEHAVIOUR Dialogue, Spirit, Vibe, Care, Openness Learning together as a team Heuristic FLOW 13 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
The Ops Room meeting is A high impact (energy) opportunity Focused on solution (share) and outcome A place where improvement is generated A how do I help you opportunity A place where you come to listen first A place of understanding the big picture A place where good decisions are made Heuristic FLOW 14 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Ops Room: Three Goals in One FLOW Constraint Rate SUBORDINATION Buffering and Protective capacity System alignment of all functions TEAM BEHAVIOUR Dialogue, Spirit, Vibe, Care, Openness Learning together as a team Heuristic FLOW 15 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Ops Room: Culture of Excellence Working with the flow model Create a Learning of the operation, establish Laboratory environment common understanding of the first with skilled facilitators constraints performance and until the principles and status of the relevant buffers culture has been established Getting daily, accurate, honest FLOW Reflecting on progress, updating of the Constraint Rate or why things are not reality of the primary SUBORDINATION Buffering and Protective capacity coming right or what Flow Chain System alignment of all functions else is needed to TEAM BEHAVIOUR improve Dialogue, Spirit, Vibe, Care, Openness Learning together as a team Operate on the basis of open Creating visibility of all dialogue, mutual respect, team the important measures Talking about the problems, learning and shared vision in a format of Green, getting contributions form all develop pride in what we are Yellow & Red for clarity attendants on what to do to achieving together resolve the issues Heuristic FLOW 16 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Ops Room Model Example Ore Handling B# CS # CN D# # BA 50 # Belt Belt Belt 51 26 Belt 51 Belt DA 27 # 28 Belt 29 6 66 6 6 68 8 69 6 9 71 71 7 2 74 75 77 Belt 77 Belt Belt 78 Belt Heuristic FLOW 17 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Daily Report on Constraint (Example) Measurement RP Reference Tons trammed -Reef +2000 1700- -Waste +500 350- Time to clear tip -Morning Shift -9h00 9h30+ - + -Afternoon Shift - + -Night Shift Tramming functional team - Morning Shift 0 2+ - Afternoon Shift 0 2+ - Night Shift 0 2+ Tip (station) box status Time it caused a blockage -Reef 0 1hour+ -Waste 0 1hour+ Stoping box status No of boxes that caused starvation - No of empty boxes 0 2+ Loco Utilisation - No of times not pulling full span 0 3+ Rail Condition -Derailments 0 1+ -2 trains move towards one another 0 1+ Infrastructure (Elect / Venti / Water etc) (caused stoppage of logistics) - No of times 0 2+ Heuristic time delay -Total 0 1hour FLOW 18 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
It is not about what the OPS Room is, but about what it does! Heuristic FLOW 19 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Operating Rules for a TOC Chain Run the constraint with military precision (on the clock, exactly) The buffers are there to protect the constraint from variations in the system they must be adequate at all times Whenever the flow stops, it means the buffer ran out. Everybody must support and align with the needs of the constraints Without brutal honesty and clear visibility we will always be busy chasing our own tails Whenever the protective capacity of any subordinated resources falter, make it known! A B C D E F Protective Capacity Heuristic FLOW 20 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Evaluating a TOC Implementation Where is your bottleneck or core problem ? Availability and utilisation levels of the bottleneck? Close to 90%? The schedule of the constraint and how well it adheres to the schedule (military precision) ? Impact of starvation and blockage on the constraint less than 10%? Fluctuation of the buffers that protect the constraint ? Rules of subordination and how well are they adhered to, especially by service departments ? War room and explain how the win-win rules work in practice ? Supervisory levels understand their roles in meeting the demands of the constraint(s)? Been able to eliminate the negative impact of the Core Problem(s)? Heuristic FLOW 21 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
The 3 Elements of Meaningful work Relevance Measurability Recognition Heuristic FLOW Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
Performance Management Performance Excellence Conditions Possess the Motivation conducive to high required skills for and attitude performance high performance 1 2 3 Heuristic FLOW 23 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008

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TOC Daily Operations Room Meeting

  • 1. TOC Operations: Daily Tactical Ops Room (Examples are for a Mining environment) The Theory of Constraints approach to Operational Excellence These 際際滷s have been prepared and presented by Arrie van Niekerk and form part of a series of presentations that were developed over several years. They represent a personal view of the subjects and are not to be interpreted as official documents of any kind. Heuristic FLOW 1 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 2. TOC in Context Own Distribution Suppliers Purchasing Market Processes Channel Heuristic FLOW 2 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 3. Creating the desired Management Culture Heuristic FLOW 3 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 4. Holistic Approach: Current Reality Measurements can help us We want all the parts to to align the parts, but it contribute to the whole often do not The parts must always do Over time, the parts what is good for the whole, develop measures that they NOT what is good for the believe are good for the parts whole, but in reality they are not fully aligned Look for the harmony (music) of the whole Heuristic FLOW 4 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 5. We Need to Find a Way to Make the Performance of the Bottleneck, the Status of the Buffers and the Alignment of the System Visible to All By creating visibility, we can ensure that everybody is aligned with the bigger picture and no actions will have a negative impact on the bottlenecks performance Heuristic FLOW 5 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 6. Fluctuation in Complex Operations Fluctuation exists not only in terms of volume but also in terms of Chemistry, Physical properties like size distribution, morphological properties, etc A B C X D E F P R Z G H I Heuristic FLOW 6 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 7. Stabilising and Enhancing a Complex Environment By having a key focal point and building protection into the system by managed buffers, the systems reliability, predictability and holistic performance are enhanced significantly. A B C X D E F P R Z G H I Heuristic FLOW 7 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 8. The TOC Process of Continuous Improvement 1. IDENTIFY the systems Constraint(s) 2. Decide how to EXPLOIT (Maximise) the systems constraints 3. SUBORDINATE (Align) everything else to the above decisions 4. ELEVATE the systems constraint(s) 5. If the constraint was broken, go back to step 1. Do not allow INERTIA to become the systems constraint Heuristic FLOW 8 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 9. Tactical Ops Room Creating Visibility and Focus: Managing the tactical operation as a holistic system Based on the concept of a Common Relevant Operational Picture The Daily Check-in meeting that is built on openness, honesty, team work and good decision making Heuristic FLOW 9 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 10. Generic Model for Ops Room SAFETY Quality Quality Flowing OUT Develop Ore Equip Stope Tram Hoist Plant Opening Up Product Body / Raw Pay Pay Boxes Ore Plant Material Face Equipped Pass Stock Length Panels Pile Flowing IN Total Subordination to the CORE PROCESS PEOPLE Material Equipment Utilities Services How are we doing this as a team? What is the music like? Heuristic FLOW 10 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 11. PURPOSE of Ops Room THE WHAT: The Primary reason for the existence of the Ops Room is to facilitate the optimization of the process flow through identified bottlenecks in the system THE HOW: This is achieved within a system that fully supports the flow and it is done through the desired behaviour of people It has to take place in a culture of openness and good visibility THE OUTCOME: The outcome of the ops room process is to have significant increase in the operational output of the system as a whole and to create an environment for consistency and the sustainability of that output Heuristic FLOW 11 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 12. Three Objectives in One Focus on the flow of the system as a whole Manage the flow, through the constraints Get the job done Status of the system to support the value chain Buffering the flow and supply of all requirements Protective Capacity (flexibility) Human alignment with purpose Doing the right things in the right way The spirit or vibe of the system Heuristic FLOW 12 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 13. Ops Room: Three Goals in One FLOW Constraint Rate SUBORDINATION Buffering and Protective capacity System alignment of all functions TEAM BEHAVIOUR Dialogue, Spirit, Vibe, Care, Openness Learning together as a team Heuristic FLOW 13 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 14. The Ops Room meeting is A high impact (energy) opportunity Focused on solution (share) and outcome A place where improvement is generated A how do I help you opportunity A place where you come to listen first A place of understanding the big picture A place where good decisions are made Heuristic FLOW 14 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 15. Ops Room: Three Goals in One FLOW Constraint Rate SUBORDINATION Buffering and Protective capacity System alignment of all functions TEAM BEHAVIOUR Dialogue, Spirit, Vibe, Care, Openness Learning together as a team Heuristic FLOW 15 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 16. Ops Room: Culture of Excellence Working with the flow model Create a Learning of the operation, establish Laboratory environment common understanding of the first with skilled facilitators constraints performance and until the principles and status of the relevant buffers culture has been established Getting daily, accurate, honest FLOW Reflecting on progress, updating of the Constraint Rate or why things are not reality of the primary SUBORDINATION Buffering and Protective capacity coming right or what Flow Chain System alignment of all functions else is needed to TEAM BEHAVIOUR improve Dialogue, Spirit, Vibe, Care, Openness Learning together as a team Operate on the basis of open Creating visibility of all dialogue, mutual respect, team the important measures Talking about the problems, learning and shared vision in a format of Green, getting contributions form all develop pride in what we are Yellow & Red for clarity attendants on what to do to achieving together resolve the issues Heuristic FLOW 16 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 17. Ops Room Model Example Ore Handling B# CS # CN D# # BA 50 # Belt Belt Belt 51 26 Belt 51 Belt DA 27 # 28 Belt 29 6 66 6 6 68 8 69 6 9 71 71 7 2 74 75 77 Belt 77 Belt Belt 78 Belt Heuristic FLOW 17 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 18. Daily Report on Constraint (Example) Measurement RP Reference Tons trammed -Reef +2000 1700- -Waste +500 350- Time to clear tip -Morning Shift -9h00 9h30+ - + -Afternoon Shift - + -Night Shift Tramming functional team - Morning Shift 0 2+ - Afternoon Shift 0 2+ - Night Shift 0 2+ Tip (station) box status Time it caused a blockage -Reef 0 1hour+ -Waste 0 1hour+ Stoping box status No of boxes that caused starvation - No of empty boxes 0 2+ Loco Utilisation - No of times not pulling full span 0 3+ Rail Condition -Derailments 0 1+ -2 trains move towards one another 0 1+ Infrastructure (Elect / Venti / Water etc) (caused stoppage of logistics) - No of times 0 2+ Heuristic time delay -Total 0 1hour FLOW 18 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 19. It is not about what the OPS Room is, but about what it does! Heuristic FLOW 19 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 20. Operating Rules for a TOC Chain Run the constraint with military precision (on the clock, exactly) The buffers are there to protect the constraint from variations in the system they must be adequate at all times Whenever the flow stops, it means the buffer ran out. Everybody must support and align with the needs of the constraints Without brutal honesty and clear visibility we will always be busy chasing our own tails Whenever the protective capacity of any subordinated resources falter, make it known! A B C D E F Protective Capacity Heuristic FLOW 20 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 21. Evaluating a TOC Implementation Where is your bottleneck or core problem ? Availability and utilisation levels of the bottleneck? Close to 90%? The schedule of the constraint and how well it adheres to the schedule (military precision) ? Impact of starvation and blockage on the constraint less than 10%? Fluctuation of the buffers that protect the constraint ? Rules of subordination and how well are they adhered to, especially by service departments ? War room and explain how the win-win rules work in practice ? Supervisory levels understand their roles in meeting the demands of the constraint(s)? Been able to eliminate the negative impact of the Core Problem(s)? Heuristic FLOW 21 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 22. The 3 Elements of Meaningful work Relevance Measurability Recognition Heuristic FLOW Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008
  • 23. Performance Management Performance Excellence Conditions Possess the Motivation conducive to high required skills for and attitude performance high performance 1 2 3 Heuristic FLOW 23 Goldratt Group (Southern Africa) 息 2004 Heuristic Flow 息 2008