9 - Jelena Fedurko_23 TOCPA_USA_21-22 March 2016_ENG_fin_20 March 2016

8/18/2019 9 - Jelena Fedurko_23 TOCPA_USA_21-22 March 2016_ENG_fin_20 March 2016

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23rd International Conference of the

TOC Practitioners Alliance - TOCPA

www.tocpractice.com 21-22 March, 201, Tennessee, !"A

Practical Issues of Constructing

Strategy & Tactic Trees

Jelena Fedurko

TOC Strategic Solutions, Estonia

21 March, 2016


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23rd International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com

Jelena Fedurko is a Co-Founder and Co-President ofTOC Practitioners Alliance TOCPA and InternationalDirector of TOC Strategic Solutions.

Jelena has been involved in TOC since 1999. She is aTOC expert, trainer and consultant, and provides TOCimplementation support in production, supply chainand project management. Jelena has worked in variouscountries all over the world, including Japan, Poland,Germany, Switzerland, Turkey, Italy, Russia, Ukraine,

India, China, Chile, Colombia, Mexico.

Jelena is the author of four advances books on TOCThinking Processes: Behind the Cloud (2011), Through Clouds to Solutions (2013), Typical mistakes in working with TOC Logical Tools (2014), A Good

Strategy & Tactic Tree (2016). Together with OdedCohen Jelena has co-authored the book Theory of Constraints Fundamentals (2012). She has contributedto a number of books on TOC, and has manypublications. Jelena translated and edited severalmajor TOC books.

[email protected]

www.toc-strategicsolutions.comwww.tocpractice.com

Jelena Fedurko


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Major reasons for difficulties

while constructing an S&T Tree

• The #$O%& P'$C'PTIO% that the "(T Tree is a tool

to )I%* a sol+tion, or that a sol+tion will somehowemere itself in the process of addin /oes to an

"(T Tree.

• The CO%)!"IO% a/o+t what to p+t in each of the )I'*I))'$'%T '%TITI'" in each "(T /o.

• The CO%)!"IO% a/o+t the '$TICA $'ATIO%"IP

4'T#''% T' 4O5'" that res+lts in the tendenc6 tomechanicall6 cop6 tactics from the parent /o into

its children /oes on the lower le7el.


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• ow do I 8now what eactl6 I sho+ld write in

each of the 9 entities in an "(T /o:

• ow can I /e s+re that what I wrote in each

of the entit6 t6pes is act+all6 this t6pe ofentit6:

• ow do "trateies and Tactics in /oes on

different le7els relate /etween themsel7es:

Frequent questions while

constructing and

populating an S&T Tree


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• The "(T str+ct+re

• The 7ertical relationship /etween the "(T /oes

• The relationship /etween the entities within the

same /o• The content of the entities in the "(T /oes

)or manaers who want to constr+ct their own

"(T Tree, each area has its challenes and diffic+lties.

The four areas

of constructing an S&T Tree


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"

T

"trate6Tactic

"

T

"T

"T

";

";

";

";

";

%ecessar6Condition

%ecessar6Condition

%ecessar6

Conditions

%ecessar6

Conditions

The S&T structure

Strategies on the lower leel are !ecessary Conditions

and inputs for the Tactic on the upper leel


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Tactic

"trate61

Tactic

Strategy 2.2

TacticStrategy

2.1

Tactic

Strategy 3.3

Tactic

Strategy 3.2

TacticStrategy

3.1

TacticStrategy

4.14

TacticStrategy

4.13

Tactic

Strategy 4.12

Tactic

Strategy 4.11

The S&T structure

"trate6 specifies WHAT WE WANT TO ACHIEVE in this

box to enable implementation of the ‘parent’ box on

the higher level The !eliverable of the "trateg# is the

res$lt of implementing the Tactics in this box

Tactic specifies HOW to achieve the tangible

!eliverable recor!e! in "trateg# % &hat actions

the compan# &ill ta'e Tactic is something that

&e CAN (O ) it is in o$r area of a$thorit# an! &ecan ta'e active an! tangible actions in this area

Strategies on

the lower leel

are !ecessaryConditions and

inputs for the

Tactic on the

upper leel


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Tactic 1The company capitalizes on the decisivecompetitive edge on big enough markets

without exhausting the Company'sresources and without taking real risks.

Strategy 2.1A decisive competitive edge is

gained by providing a

"partnership" that deliverssuperior inventory turns (better

availability coupled withsubstantially reduced

inventories), when all other

parameters remain the same.

Strategy 2.2A decisive competitive edge is

gained by providing a

partnership that secures theclients an increase in TPS andprovides a realistic chance of

sharing in a much higherincrease.

"ertical relationship #etween the

S&T #o$es

Consu%er oods S&T'Strategies on the lower leel are !ecessary Conditions and inputs for the

Tactic on the upper leel


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Tactic 3. 1The company implements the Make-To-Availability (MTA) mode of

operations (implements the appropriate version of S-DBR andpull distribution and maintains appropriate inventories in the

warehouses).

Strategy 4.11

The Companyholds, in its Plant

Warehouse(s)(CDC), relativelysmall amounts ofinventories whichare appropriate to

service the“partnerships.”

Strategy 4.13

The target levelsof inventories held

at the variouslocations arecontinuously

monitored andwhen needed are

suitably modified.

Strategy 4.12

RDCs holdrelatively small

amounts ofinventories whichare appropriate toprovide superior

service.

Strategy 4.14

Better flow isregarded by

production as themost importantelement, undertheir control, to

improve

availability.

Consu%er oods S&T'Strategies on the lower leel are !ecessary Conditions and inputs for the

Tactic on the upper leel

"ertical relationship #etween the

S&T #o$es


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Tactic

"trate61

Tactic

Strategy 2.2

TacticStrategy

2.1

TacticStrategy

3.3

Tactic

Strategy 3.2

TacticStrategy

3.1

TacticStrategy

4.14

Tactic

Strategy 4.13

Tactic

Strategy 4.12

Tactic

Strategy 4.11

(uilding the top)down cascade'"ertical relationship #etween the S&T #o$es'The Strategies on the lower leel are the !ecessary

Conditions and inputs for the Tactic on the upper leel

#hat do we want to achie7e:

O# do we want to achie7e "trate6 1


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1"trate6> I have eaten an

omelet for brea'fastTactic> I &ill coo' an

omelet

#hat do we want to achie7e:

O# do we want to achie7e "trate6 1

< thro+h which specific actions:

There are se7eral a7aila/le options

for the Tactic>• I will coo8 an omelet m6self

• I will as8 the famil6 mem/er to coo8 an

omelet for me

• I will o to a diner or hotel resta+rant and

order an omelet for /rea8fast

• I will order an omelet from $oom "er7ice

(uilding the top)down cascade *

an e$a%ple

The chosen Tactic will determine

the content of this "(T Tree.


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(uilding the top)down cascade *

an e$a%ple

#hat do we need in order to /e a/le toimplement the Tactic in e7el 1:

#hat do I need in order to coo8 an

omelet:

•'s

• Other inredients> omelet fillins, salt,

pepper, coo8in oil

• '?+ipment for coo8in> a miin

/owl, a mier, a fr6in pan, a coo8er

• @nowlede of how to coo8 an omelet

These fo+r elements are the %'C'""A$ CO%*ITIO%" A%* I%P!T" for Bcoo8in

an omelet and need to /e created to ena/le me to implement the Tactic on

e7el 1 BI will coo8 an omelet.


omelet for brea'fast

Tactic> I &ill coo' anomelet

'ample


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(uilding the top)down cascade'+, -efining Strategies for the Tactic

on the upper leel

"trate6 2.1

I have eggs




"trate6 2.2I have allnecessar#

ingre!ientsfor an omelet

"trate6 2.3

I have thenecessar#

e*$ipment

"trate6 2.=

I have thenecessar#

'no&le!ge

'ample


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"trate6 2.1

I have eggs






"trate6 2.3

I have thenecessar#

e*$ipment

"trate6 2.=

I have thenecessar#

'no&le!ge

O# do we want to achie7e"trate6 2.1 < thro+h whichspecific actions: Options for

the Tactic in 2.1>1. I /+6 es2. I collect es from m6free rane chic8ens

(uilding the top)down cascade'., -efining the Tactic on the sa%e leel

'ample


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"trate6 2.1

I have eggs






"trate6 2.3

I have thenecessar#

e*$ipment

"trate6 2.=

I have thenecessar#

'no&le!ge

O# do we want to achie7e"trate6 2.1 < thro+h whichspecific actions: Options for

the Tactic in 2.1>1. I /+6 es2. I collect es from m6free rane chic8ens

(uilding the top)down cascade'., -efining the Tactic on the sa%e leel

'ample

I collect eggs

from m# free

range chic'ens


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Tactic

"trate61

Tactic

Strategy 2.2

TacticStrategy

2.1

TacticStrategy

3.3

Tactic

Strategy 3.2

TacticStrategy

3.1

TacticStrategy

4.14

TacticStrategy

4.13

Tactic

Strategy 4.12

Tactic

Strategy 4.11

Further deeloping the S&T

cascade into the full ertical

#ranchAfter having !evelope! the s'eleton

for one vertical branch+ &e ma#

!evelop f$ll boxes on this branch

To complete the tree+ I recommen!

filling in the boxes

from left to riht,

from /ottom to top.


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TacticStrategy

2.1

TacticStrategy

3.1

TacticStrategy

4.14

TacticStrategy

4.13

Tactic

Strategy 4.12

Tactic

Strategy 4.11

Further deeloping the S&T cascade into

the full ertical #ranch *

fro% #otto% to top/ left to right


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Tactic

"trate6

4.11

%A

PA

"A

Tactic

"trate6

4.12

%A

PA

"A

Tactic

"trate6

4.13

%A

PA

"A

Tactic

"trate6

4.14

%A

PA

"A

Tactic

"trate6

3.1

%A

PA

"A

Further deeloping the S&T cascade into

the full ertical #ranch *

fro% #otto% to top/ left to right


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Necessary

Assump.(NA)

Why this box is a necessary condition to achieve the

“parent” box and why we will spend managerial

effort and time to deal with this area.Strategy WHAT WE WANT TO ACHIEVE in this box to

enable implementation of the box on the higher

level. The deliverable of the Strategy is the result ofimplementing the Tactics in this box.

Parallel

Assump.(PA)

Why we claim that the strategy is possible at all – a

justification.Tactic How we will achieve the strategy – actions.

Sufficiency

Assump.(SA)

What we should not overlook.

0hile filling in the #o$es * keep in %ind

the content of the entity and its logical

relationship with other entities


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The content of the NA statements inc$!es,

• a significant need of the compan#’s mar'et

• something neati7e in the compan#’s c$rrent realit#• a threat to the compan#’s f$t$re realit# that ma# res$lt from

incomplete implementation of the sol$tion

•something in the c$rrent realit# that is not negative #et+ b$t

if not addressed now, ma6 /rin neati7e in the f$t$re

The logical relationship bet&een the Necessar# Ass$mptions+

the title of the box an! the "trateg#,Because of [NA], we find it necessary and worthwhile putting the

managerial effort and time in [the title/area of the box], and as the

result of our effort we want to achiee [Strategy]!

!ecessary 1ssu%ptions 2!13


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The content of the "trateg# statements inc$!es,

- achieving a sinificantl6 hiher taret le7el .specific or non)

specific/ of a meas$rement that compan# 'no&s an! alrea!# $ses0

- a new meas+rement as a part of the ne& sol$tion0

- an# other tani/le deli7era/le of the Tactics in this box

The logical relationship bet&een the "trateg#+ the title of thebox an! the Necessar# Ass$mptions,

Because of [NA], we find it necessary and worthwhile putting themanagerial effort and time in [the title/area of this box], and as

the result of our effort we want to achiee [Strategy]!

Strategy


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The content of the 1A statements inc$!es,

• there is 8nowlede and eperience that prove that the !esire!

"trateg# can be achieve! thro$gh the actions in Tactics0• there is something in the compan#’s realit# that pla6s in fa7or

of the strate6 and can /e +sed in the actions in Tactic This ma#

be the res$lt of previo$s steps in implementation of the sol$tion0

an obvio$s fact+ or a general principle+ pla#ing in favor of the

strateg#

The logical relationship bet&een the Tactic+ "trateg# an!1arallel Ass$mptions,

"n order to achiee [Strategy], we must implement [Tactic],

B#$A%S# [&arallel Assumptions]!

Parallel 1ssu%ptions 2P13


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The content in the Tactic entit# spea's abo$t

• a mechanism or

• loistical performance le7el that &ill be b$ilt

that the compan# !i! not have before

The logical relationship bet&een the Tactic an! the "trateg#,

"n order to achiee [Strategy] we must implement [Tactic]!

Tactic


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The content of the "A entit#,

- defines or clarifies an important element in the Tactic0

- give a warnin abo$t a challenge in s$staining the o$tcome of"trateg# an! Tactics0

- reminds a/o+t a condition that m$st be achieve! in or!er to

ens$re s$ccessf$l implementation of the Tactic0

- i!entifies the area in Tactic that+ if overloo'e! or not a!!resse!+

&ill +ndermine the implementation of the Tactic0

- pre-empts reser7ations reardin o/stacles in implementing

TacticsThe logical relationship bet&een the Tactic an! the "A,

"n order to implement [Tactic], we must not oerloo' the fact that

[Sufficiency Assumption]!

Sufficiency 1ssu%ptions 2S13


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- The !*'s and the ass+mptions from the 2(E Clo$!s &ill bereflecte! in %ecessar6 Ass+mptions- The direction of the sol+tion &ill be recor!e! in "trateies onthe $pper levels- The InDections and Intermediate O/Decti7es &ill be recor!e!mostl# in Tactics, and also in "trateies on the lo&er levels- The *esired 'ffects &ill be reflecte! in "trateies

- The %eati7e 4ranches &ill be reflecte! in "+fficienc6Ass+mptions.- The ass+mptions /etween an InDection and 4 and C of an 2(EClo$! &ill be recor!e! in Parallel Ass+mptions

In the co+rse of constr+ctin an "(T Tree, there will /e other

elements de7eloped < that do not oriinate from the wor8 with the!*' Clo+ds.

0here fro% we take the 4raw

%aterial5 for the S&T Tree


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7D

D’C

B

A

C

B

A Inj

8

Ass+mp Challen InDect

Injection

Possible negativeoutcome

Neutral

-

+

9

0here fro% we take the 4raw

%aterial5 for the S&T Tree


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1 detailed guide on constructing

an S&T Tree

A ne& boo' p$blishe!

in 3arch 4567

• 8$les

• Examples• (etaile! anal#sis

• Exercises &ith ans&ers

If #o$ have *$estions % &rite to

Delenafed+r8o.sFmail.com

9 - Jelena Fedurko_23 TOCPA_USA_21-22 March 2016_ENG_fin_20 March 2016

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