04-antony hynd_ba systems_21 tocpa_uk_11 nov 2015_for web
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04-Antony Hynd_BA Systems_21 TOCPA_UK_11 Nov 2015_for WebTRANSCRIPT
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com 11 November 2015, UK
Taking Balustrading
from Good to Great
Antony Hynd, BA Systems, UK
11 November, 2015
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
BIO
• Worked in construction industryand balustrading for 21 years
• Business in South Africa up to1999
• Restarted in UK in businesswith two brothers
01603 [email protected]
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
The Early Days TOC
• BA exposed to The Goal movie in 2009
• Followed up with the audio book, made availableto all staff
• Market focus- some jobs flowed 18x as fast asothers
• Reduced batch quantities in factory
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Construction Industry
• There are too many uncertainties
• Too often information is missing
• Customer requirements are often unclear/ change/ incorrect
• Rework and snagging
• Traditionally an industry of mistrust and ongoing chaos.
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Operational Problems
• Too often our estimates (times) are incorrect• It is often difficult to agree dates with clients• We are often under pressure to start projects
earlier than possible• Too many surveys have “assumptions” that
cannot be validated• Too often a site requires more than one visit to
complete the survey• There are not enough orders to promote flow
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Business UDE’s
• Net Profit is too low as a percentage of Sales
• Gross profit is reducing as a percentage of sales (45% down to 29%)
• Costs are increasing faster than sales
• Cash flow problems
• Too many KPIs in all departments
• Monitoring success on orders landed
UDE Map
Too many surveys have “assumptions” that cannot be validated
Too often a site requires more than one visit to complete the survey
Too often the necessary
construction elements to complete a
site survey are not ready
There is pressure internally and
externally to visit sites that are not ready for survey
There are often missing dimensions on a survey
Too many survey
assumptions are
invalidated in installation
Too often there is an
urgent need for new
glass during installation
Too much rework on-site during
installation
Necessary things are not always
available (access,
equipment, documentation)
Too often the site is not ready for installation
All delays in construction
are passed on to installation
Installation due dates
always move out
Too many parts are
missing for installation
Too many shortages of fittings
Installation plans
change frequently
(daily)
Too many installations take
longer than planned
Installation costs are
ever increasing
Necessary things are not available on time (complete
survey information, specification, designs, etc.),
There is too many
modifications of drawings during
installation
There are too many changes (Architect and
internally)
Too often tasks take longer then
planned
Too much
Rework
Too much Scrap
Necessary things are not available on time (operations
resources, manufacturing equipment, etc.)
Too often there is a need for an urgent delivery
Too much expediting
and overtimeDelivery costs are too high
Our product offers are not differentiated
enough
Too many marketing initiatives do not result
with the desired market impact
Too many enquiries generated
are disqualified
Costs are increasing faster than
sales
Our Gross profit is reducing
(45% down to 29%)
We are under constant pressure to reduce prices
Sales are growing too slowly
Sales cycles are too
long
Competition offers are perceived
as a higher value than
ours
Good past performance is often forgotten for repeated
sales purposes
Too many construction companies
disregard offers from specialist niche suppliers
Too many site deliveries are
later than planned
Core
Problem
Successfully achieve the
Profitable Growth Targets
Ensure Monthly Growth Targets are
met
Forced to pull work forward in every
department
Hold back the start of the work
Maximise Profits
I must...
I must...
BECAUSE:
• When each department meets their monthly growth target this results in the business meeting its growth target
• There are not enough orders available to deliver to meet the growth targets without pulling forward
I must...
BECAUSE:
• Starting later uses capacity more effectively and costs less money
• Starting too early without all the necessary things required leads to rework and extra cost
In order to…
Drawing
Indication of
Due Date
Approval
Order
Survey
Specification
Installation
date
x
Pre-SurveyFirst Fix
1. Pre-Survey Full Kit Needed
2. Awaiting Survey/ Full Kit
3. Survey Complete/ Awaiting Drawing - Full Kit Complete
4. Drawing5. Drawing Approval
6.Awaiting Manufacture / Full Kit
Flow Diagram
7. Manufacture
8. Awaiting Installation Full Kit
9. On Site
x
x
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
It is all about managing flow…
SalesWeaver
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
RopeWeaver
• Ropeweaver
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
SalesWeaver
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Sales Pipeline
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Total Pipeline
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
Trend
Removed from the pipeline
Early Communication
Interest
Desire
Action
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Actual Sales Flow
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Sales Invoice Flow Driver
• Bet on the horse that is going to win• Don’t waste time on uncertain sales
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
6 Months into TOC…
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Strategy & Tactics
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Results
• Net profit in 6 months = 12 months last year• Lead times reduced from 12 weeks to 6 weeks• Cash increased by 50%• Sales and Marketing pipeline measurements
and trends in place• We can project confidently short term
performance and identify and quantify risks• Single priority system is constantly monitored• Significant reduction on rework and snagging
21st International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Results
• Positive workforce with focus• Customers much happier, not one late
installation in the last five months• Stop counting pennies, we are going for the big
pounds• Quick turn around on smaller jobs without
jeopardizing the execution plan• Always planning ahead