Showing posts with label risk. Show all posts
Showing posts with label risk. Show all posts

Monday, October 12, 2015

2015 TOCICO Conference - Catch Phrases

Every TOC event I go to blesses me with a lot of new knowledge and ideas. It also adds some 1-liners and catch phrases. When I capture them here, in the blog, not only can you all enjoy them with me, I can also recall them years later and put them to use (like the ones here). So, here are some of the things I collected during the 2015 Annual TOCICO conference:

  • "War Room" - don't talk about yesterday (to the 3rd point after the decimal), talk about tomorrow!
  • Fear of the unknown drives us to act according to detailed (and mistaken) forecasts.
  • Sales comply with Pareto Law, inventory does not.
  • The bigger the range, the bigger the tail.
  • People claim (as in "market research shows") they are willing to pay a bigger premium for instantaniety than for technological improvement.
  • In fashion, the product life cycle is shorter than the supply time.
  • Any business based on forecast is fragile (refer to my previous post on anti-fragile)
  • Orthodoxy - anything done without knowing why.
  • IVD (Inventory Value Days - what do you know, some countries don't use the UD$ currency, go figure) = stuck, unworking capital (you knew that).
  • Risk is uncertainty against an objective
  • Risk management should be applied on the weakest link.
  • Start with Flow - before applying 5 Focusing Steps check that the constraint is the real cause of delays/blocks in flow.
  • Operational Goal - meet demand (at peak, not just on average) effectively and efficiently.
  • If you are not testing what you are thinking - you are not thinking like a scientist.
  • A cluttered mind is an obstacle to thinking.
  • The indicators must subordinate to the goal.
  • The goal and the necessary conditions must measure alignment as well as progress.
  • Variability in the #1 enemy of flow.
  • We need simple systems that can handle complexity.
  • Systems are variability amplifiers.
  • Forecasts are valuable for mid to long term planning, not day-to-day operations.
  • Incoming "Peaks" are not forecasts.
  • Buffers decouple supply and demand.
  • Come your customer from will, not from need, you can not create trust when you are needy.
  • Strategy - a project portfolio of things that need to be done by the time we are planning for.
  • It is management's responsibility to create the automatic machine.
So, which one is your favorite? Please share.

Let me know if there is any point you feel needs more elaboration.

Saturday, April 27, 2013

Stop waiting - ask and you shall recieve

I've always wanted a mentor. You could say I have a father figure issue and I'd be the first to agree but it's not relevant. I've recently figured out that in the Theory of Constraints you may learn from the past but other than that you basically let it be gone. It doesn't make much difference how you got to where you are, the thing that's really relevant is how to get to where you're going. So, as I was saying, I've always wanted a mentor.

After I began writing in the TOC groups and in this blog I, subconsciously of course, started a waiting game. I was waiting for someone to pick up a cue of my need, step forward and offer to help me. Impudent, I know (oh, the wonders of retrospect), but I was terrified of asking. Why? basically a whole load of excuses, no real valid reason. I just felt I had no right, it wasn't polite and that kind of hogwash. I told you all I have are excuses. The only thing I can say is I was afraid of consequences without putting a moments thought into why.

Another thing I realize in retrospect is that I have been offered the help I wanted many times in the past. Thing is, just as my requests were not straightforward so were the offers. I was weary of asking straight out in case I would offend someone or be turned down. In much the same way the people who were reaching out to me did not state it straight out, probably in order to make sure not to offend me if they misunderstood. Well, I hope I'm done with playing that kind of immature game. Better late than never. This doesn't change the facts, though - I was stuck, not in a very good place and I was not liking it. Still, I waited. Still, I was afraid to change anything.

When I look now at Goldratt's 4 quadrants of change, I guess I was under the spell of "The Siren". Do you remember that, in some sea going folklore, sirens are mermaids that tempt the sailors and then drawn them?
Well, as I see it, this holds true in daily life as well. The "siren" is that comfortable settling for less, the place where fear of change glorifies the current situation way beyond its truthful value and at the same time vilifies the risks of change to the extreme. When the "siren" sings, the minuscule risk of getting a negative answer that will simply leave things as they are (=nothing to lose, no?) will seam unbearable, best leave things as they are and not risk it.....

There is a parable going around email kingdom. It is about a guru that forces his student to kill the only cow of a poor family. When the student returns, full of guilt, to right the wrong he has done at his guru's bidding, he finds the family became reach. The family explains that when they had the cow and it gave a little milk, they made do with what they had. One day the cow died and they could no longer make do, they had to figure out another way and when they did they realized they could do so much more and have so much more. So sometimes we are forced out of the spell of the siren, someone comes along and "kills" our "cow". That does not happen often.

My claim is that we should not let the spell of the siren control us. We should not wait helplessly for others to come and free us. If ever we are paralyzed by the idea of change or of taking a risk, if ever we encounter a rejection to a change we offer that seems to come from a place of paralysis, we need to use our logic, the analysis tools and a little courage and break free.

So I want to thank Jim, Lisa and the others for offering so kindly to help me out. Thanks Jim for all the help and for leading me to success. It was a lot of hard work but it was not hard as I made it out to be!!!

Have you ever struggled to overcome the siren? Please share your experience. Do you know someone still under the spell? Please send them this post.