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23RD INTERNATIONAL CONFERENCE OF THE

TOC PRACTITIONERS ALLIANCE - TOCPA


www.tocpractice.com

21-22 March, 2016, Tennessee, USA

S&T AND THE RED CURVE.

SADASHIV PANDIT, INDIA


MARCH, 2016

SADASHIV PANDIT

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EXECUTIVE CHAIRMAN
FLEETGUARD
LTD.

FILTERS

PVT

PUNE, INDIA.

ssp@fleetguard-filtrum.com
+91 98220 23647.
www.tocpractice.com

23rd International Conference of the TOC Practitioners Alliance - TOCPA

EVER FLOURISHING COMPANY

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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
ISCREATING NEW BREAKTHRU SOLUTIONS ALL THE
TIME
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

EVER FLOURISHING COMPANY

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RED CURVE MEANSWE ARE GROWING THE


THRUPUT FASTER THAN THE OE FOR A GIVEN
MARKET.
THE CHALLENGE ISWHAT ARE THE OBSTACLES FOR
GROWTH, HOW TO LOOK IN TO THE ASSUMPTIONS
AND
HOW
TO
USE
FALCIFICATION
LOGIC
EFFECTIVELY.

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

FLEETGUARD INDIA : PLANTS & OFFICES

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

FLEETGUARD STORY

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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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23rd International Conference of the TOC Practitioners Alliance - TOCPA

SALES GROWTH

Sales
12,000
10,000
8,000
6,000
4,000
2,000
2007

2008

2009

2010

2011
Sales

2012

2013

2014

2015

2016
FCST

COMPANY PROFILE.

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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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23rd International Conference of the TOC Practitioners Alliance - TOCPA

SIGNIFICANT NEEDINSIGHTS

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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 THE
SIGNIFICANT NEED.

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

NEED CONTINUUM

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WHAT IS SUFFICIENT TODAYMAY BECOME


NECESSARY BY TOMORROW.
EXAMPLESIF A COMPANY IMPLEMENTS CCPM, IT
REDUCES THE LEAD TIME TO INTRODUCE NEW
PRODUCTS SAY BY 50%.
THE LEAD TIME OF TODAY MAY BECOME A
NECESSARY CONDITION OF TOMORROW.

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

SIGNIFICANT NEED..FLEETGUARD

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MEET THE CUSTOMER EXPECTATIONS OF PRODUCT


PERFORMANCE,COST AND SERVICE WITHIN THE
CUSTOMER 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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23rd International Conference of the TOC Practitioners Alliance - TOCPA

STRATEGY AND TACTIC TREE

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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
ASSUMPTIONS FROM TIME TO TIME.
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PARALLEL

23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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TOC IS ABOUT FIVE FOCUSING STEPS..


DR.ELI GOLDRATT HAD WARNED THAT COMPANIES
GET STUCK IN INERTIA.
AFTER A SUCCESSFUL IMPLEMENTATION OF TOC
SOLUTIONS, THE SALES AND PROFIT GOES UP
RAPIDLY.
THIS SITUATION GENERATES A COMFORT LEVEL
WITHIN THE ORGANIZATION TO NOT TO CHANGE.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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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.
www.tocpractice.com

23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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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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23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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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 ISHOW TO DEVELOP NEW
PRODUCT, OBSOLATING THE CURRENT ONE WITH
HIGHER T% AND BEING MORE COST
COMPETITIVE?
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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VALUE BASED PLANNING ALLOWS TO SET A NEW


VALUE POSITION AS WELL AS A NEW PRICE
POSITION, 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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23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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CHALLENGE NO # 3PENETRATION 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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23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES..

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CHALLENGE NO # 4.TOC AS A DNA.


MANY PEOPLE WITHIN THE COMPANY GET STUCK
WHEN THEY FACE OBSTACLES. THE ROOT CAUSE
BEING THEY DO NOT UNDERSTAND CRT/FRT LOGIC
BEHIND THE SOLUTION.IN SUCH INSTANCES, THEY
REVERT TO LOCAL OPTIMA DECISION MAKING AND
PUT DICISIVE COMPETITIVE EDGE IN DANGER.
INITIALLY TOC SOLUTIONS START FROM TOP WHERE
THE PARADIGM SHIFT HAPPENS.

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23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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DOWN THE LINE ORGANIZATION GETS DRIVEN BY


SOPS.
AS THE COMPANY COMPLETES FIRST ROLL OUT OF
VIABLE VISION,
STEP II VIABLE VISION JOURNEY STARTS.
THE KEY CHALLENGES FOR THIS JOURNEY ARE
1.IDENTIFYING THE NOISE IN THE REALITY.
2.IDENTIFYING THE CHANGE IN REALITY.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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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 TOC
AS DNA ACROSS THE ORGANIZATION.
IN-ABILITY TO READ CHANGE IN REALITY HAS EVEN
BIGGER IMPACT ON THE PERFORMANCE OF THE
COMPANY.
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23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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BREAK THRU SOLUTIONS ARE GOING TO COME


ONLY THRU ANALYSING THE NEW REALITY THRU
CRT/FRT LOGIC.
WITHOUT BREAKTHRU, THE DCE IS NOT GOING TO
SUSTAIN.IN THAT CASE A RED CURVE
PERFORMANCE WILL DISAPPEAR IN SHORT TIME.
PENETRATING TOC EDUCATION TO THE BOTTOM
THUS IS THE KEY.
www.tocpractice.com

23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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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 DIFFERENTIATE
BETWEEN NOISE AND CHANGE IN REALITY.

www.tocpractice.com

23rd International Conference of the TOC Practitioners Alliance - TOCPA

KEY CHALLENGES

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AS THE COMPANY STARTS USING FIVE FOCUSING


STEPS AGAIN AND AGAIN, THE COMPANY WITH TOCDNA 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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23rd International Conference of the TOC Practitioners Alliance - TOCPA

SIMPLE DIFFICULTY

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TOC SUCCESS ON ONGOING BASIS IS WELL DEFINED


IN THE FIVE FOCUSING STEPS.
SNT CAPTURES THE SCOPE .
SNT NEEDS REVISION REGULARLY, BASED ON THE
MARKET CONDITIONS.
ABILITY OF THE COMPANY TO DIFFERENTIATE
BETWEEN THE NOISE AND CHANGE IN REALITY
DECIDES SUCCESS AND FAILURES.
www.tocpractice.com

23rd International Conference of the TOC Practitioners Alliance - TOCPA

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THANK YOU
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23rd International Conference of the TOC Practitioners Alliance - TOCPA