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23RD INTERNATIONAL CONFERENCE OF THE
TOC PRACTITIONERS ALLIANCE - TOCPA
www.tocpractice.com 21-22 Marc! 2"1#! Te$$e%%ee! &SA
S&T AND THE RED CURVE.
SADASHIV PANDIT, INDIA
MARCH, 2016
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SADASHIV PANDIT
EXECUTIVE CHAIRMAN
FLEETGUARD FILTERS PVT
LTD.
PUNE, INDIA.
+91 98220 23647.
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Your logoEVER FLOURISHING COMPANY…
STRATEGY AND TACTIC TREE IS A SYSTIMATIC WAY OF
‘DEVELOPING THE LOGIC’ TO BUILD AND SUSTAIN A
COMPETITIVE EDGE.
EVER FLOURISHING COMPANY IS A STATE ACHIEVED
AFTER SUCCESSFULLY IMPLEMENTING A STRATEGY
AND TACTIC TREE.
KEY ATTRIBUTE OF EVER FLOURISHING CO
IS…CREATING NEW BREAKTHRU SOLUTIONS ALL THE
TIME…
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Your logoEVER FLOURISHING COMPANY…
RED CURVE MEANS…WE ARE GROWING THE
THRUPUT FASTER THAN THE ‘OE’ FOR A GIVENMARKET.
THE CHALLENGE IS…WHAT ARE THE OBSTACLES FORGROWTH, HOW TO LOOK IN TO THE ‘ASSUMPTIONS’
‘AND HOW TO USE ‘FALCIFICATION LOGIC
EFFECTIVELY’.
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Your logoFLEETGUARD INDIA : PLANTS & OFFICES
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Your logoFLEETGUARD STORY…
FLEETGUARD HAS BEEN ON THE TOC JOURNEY
SINCE 2007.
OUR BUSINESS GROWTH SO FAR [PAST 9 YEARS]
GIVE US THE CONFIDENCE THAT WE ARE ON
THE ‘RED’ CURVE.
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SALES GROWTH
-
2,000
4,000
6,000
8,000
10,000
12,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016FCST
Sales
Sales
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Your logoCOMPANY PROFILE….
WE ARE IN THE BUSINESS OF AUTO COMPONENTS.
WE SUPPLY TO MAJOR OEM AND THEIR
AFTERMARKET CHANNELS.
WE ALSO SUPPORT/COMPLEMENT THE OEM
CHANNELS THRU OUR INDEPENDENT CHANNELS
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Your logoSIGNIFICANT NEED…INSIGHTS
SIGNIFICANT NEED FOR A MARKET COMPRISES
OF ‘PRODUCTS’ AND ‘SERVICES’.
SIGNIFICANT NEED IS ABOUT THE ‘PROBLEM’
MARKET IS FACING .
BOTH PRODUCT AND SERVICE REQUIREMENTS
‘CHANGE WITH RESPECT TO TIME’ AND SO IS THESIGNIFICANT NEED.
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Your logoNEED CONTINUUM…
WHAT IS ‘SUFFICIENT’ TODAY…MAY BECOME
NECESSARY BY TOMORROW.
EXAMPLES…IF A COMPANY IMPLEMENTS CCPM, IT
REDUCES THE LEAD TIME TO INTRODUCE NEWPRODUCTS SAY BY 50%.
THE LEAD TIME OF TODAY MAY BECOME A‘NECESSARY CONDITION’ OF TOMORROW.
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Your logoSIGNIFICANT NEED..FLEETGUARD…
MEET THE CUSTOMER EXPECTATIONS OF PRODUCT
PERFORMANCE,COST AND SERVICE WITHIN THECUSTOMER TOLERANCE TIME.
CUSTOMER TOLERANCE TIME FOR OEM FIRST FIT
AND FOR AFTERMARKET ARE DIFFERENT AND ARE
ON DIFFERENT SCALE OF ‘REACH AND RANGE’.
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Your logoSTRATEGY AND TACTIC TREE…
FLEETGUARD DEVELOPED ITS STRATEGY AND
TACTIC TREE COVERING THE FOLLOWING
1. MARKET HAS TO BE BIG ENOUGH
2. SATISFY THE SIGNIFICANT NEED OF THE MARKET,WITHOUT TAKING MAJOR RISK, THRU TESTED AND
PROVEN TOC TOOLS LIKE S-DBR,CCPM, THRUPUT
ACCOUNTING.
3. TRACK THE NECESSARY AND PARALLEL
ASSUMPTIONS FROM TIME TO TIME.
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Your logoKEY CHALLENGES…
TOC IS ABOUT FIVE FOCUSING STEPS..
DR.ELI GOLDRATT HAD WARNED THAT COMPANIESGET STUCK IN INERTIA.
AFTER A SUCCESSFUL IMPLEMENTATION OF TOCSOLUTIONS, THE SALES AND PROFIT GOES UP
RAPIDLY.
THIS SITUATION GENERATES A ‘COMFORT LEVEL’
WITHIN THE ORGANIZATION TO ‘NOT TO CHANGE’.
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Your logoKEY CHALLENGES…
COMPLECANCY STEPS IN AND AND SO IS
COMPETITION.
CHALLENGE NO #1 ……HOW TO RETAIN THE
CURRENT BUSINESS?
THIS CHALLENGE CAN BE OVERCOME BY ‘CCPM’
LEVER.
ONGOING CAPACITY EXPLOITATION OF CCR
ENSURES ‘DCE’ IN PLACE.
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Your logoKEY CHALLENGES…
CCPM LEVER…
CCPM IS THE ABILITY TO ROLL OUT RESPONSES
VERY FAST.
ANY CHALLENGE/TARGET FROM THE OEM
CUSTOMER CAN BE MET.
CCPM GIVES THE FLEXIBILITY TO ‘ADD OR
SUBTRACT VALUE’ BASED ON THE PRODUCT NEED.
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Your logoKEY CHALLENGES…
CHALLENGE NO# 2….MARKET IS BIG ENOUGH.
IN AN OEM BASED BUSINESS SOLUTION, PRODUCT
LIFE CYCLES ARE CERTAIN AND TO A LARGE EXTENT,
CAN BE PREDICTED.
THE CHALLENGE IS…HOW TO DEVELOP NEW
PRODUCT, OBSOLATING THE CURRENT ONE WITH‘HIGHER T% AND BEING MORE COST
COMPETITIVE?’
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Your logoKEY CHALLENGES…
VALUE BASED PLANNING ALLOWS TO SET A NEW
VALUE POSITION AS WELL AS A NEW PRICEPOSITION, BOTH OF WHICH CAN BE ‘COMPETITIVE’
[BLUE OCEANS]
A DECISIVE COMPETITIVE EDGE COMPRISES OF
‘PRODUCT VALUE AND SERVICE VALUE’.
FOCUS ON ‘PRODUCT VALUE’ CREATES A NEW PRICE
POINT IN THE MARKET PLACE, WHICH ADDS MORE T%.
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Your logoKEY CHALLENGES…
CHALLENGE NO # 3……PENETRATION AFFECTING
‘REACH AND RANGE’.
LOCAL PLAYERS TRY TO DISRUPT THE MARKET AT
MANY PLACES. THAT COULD BE WITH LOWER COST/
HIGH VOLUME OFFERS.
TOC SOLUTIONS OF FREQUENT
REPLENISHMENTS OFFSET SUCH INITIATIVES.
POT OF GOLD/ALLEGATOR OFFER SELLING OFFSET
THIS CAUSE.
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Your logoKEY CHALLENGES..
CHALLENGE NO # 4….TOC AS A DNA.
MANY PEOPLE WITHIN THE COMPANY GET STUCKWHEN THEY FACE OBSTACLES. THE ROOT CAUSE
BEING THEY DO NOT UNDERSTAND CRT/FRT LOGIC
BEHIND THE SOLUTION.IN SUCH INSTANCES, THEYREVERT TO LOCAL OPTIMA DECISION MAKING AND
PUT ‘DICISIVE COMPETITIVE EDGE ‘ IN DANGER.
INITIALLY TOC SOLUTIONS START FROM TOP WHERETHE PARADIGM SHIFT HAPPENS.
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Your logoKEY CHALLENGES…
WITHOUT KNOWLEDGE OF CAUSE AND EFFECT
LOGIC, A ‘NOISE’ IS DEALT WITH ‘LOCAL OPTIMA’SOLUTIONS, THRU JEOPARDIZING THE ‘DCE’.
A KEY REQUIREMENT IS TO TRAIN AND COACH ‘TOCAS DNA’ ACROSS THE ORGANIZATION.
IN-ABILITY TO READ CHANGE IN REALITY HAS EVENBIGGER IMPACT ON THE PERFORMANCE OF THE
COMPANY.
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Your logoKEY CHALLENGES…
FAILURE TO IDENTIFY NEW BREAKTHRUS MEANS
FAILURE TO SURVIVE.
A COMPANY WIDE TRANING AND COACHING TOC
PRINCIPLES BECOMES A VERY CRITICAL NEED.FALCIFICATION LOGIC IS USED TO CHECK CRT/FRT.
THIS ALLOWS THE COMPANY TO DIFFERENTIATEBETWEEN ‘NOISE’ AND ‘CHANGE’ IN REALITY.
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Your logoKEY CHALLENGES…
AS THE COMPANY STARTS USING FIVE FOCUSING
STEPS AGAIN AND AGAIN, THE COMPANY WITH TOC-DNA IS ABLE TO IDENTIFY MORE AND MORE
BREAKTHRUS’ AS WELL AS LEARNS TO AVOID LOCAL
OPTIMA DECISIONS FOR THE ‘NOISE’ IN REALITY.
THESE NEW BREAKTHRUS’ ARE PUT IN TO SNT AND
NEW SOPS’ ARE MADE.
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Your logoSIMPLE DIFFICULTY…
TOC SUCCESS ON ONGOING BASIS IS WELL DEFINED
IN THE FIVE FOCUSING STEPS.
SNT CAPTURES THE SCOPE .
SNT NEEDS REVISION REGULARLY, BASED ON THEMARKET CONDITIONS.
ABILITY OF THE COMPANY TO DIFFERENTIATEBETWEEN THE ‘NOISE’ AND ‘CHANGE’ IN REALITY
DECIDES SUCCESS AND FAILURES.
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THAN* +O&