About this Presentation
“Anything that improves the bottom line is an improvement,” Dr. Goldratt said. “Anything else is an ego trip.” TOC defines three ways by which an organization can enact POOGI: 1) the five focusing steps, 2) the change question sequence and 3) buffer management. Think of these items, and all the many derivations of buffer management. Do you notice something? There is no POOGI dedicated to the goal – making money now and in the future. There’s POOGI for production, projects, distribution, but there’s not one specifically dedicated to profit. One could even argue all existing forms of POOGI, while great unto themselves, are actually local optima. You can be in the green zone of existing buffers all the while losing money. How can we be led to say there’s nothing to improve? How can this be? Why is there no POOGI for profit, when profit is the goal? Did we in the TOC community commit the very sin we rail against? We think so. However, we have found the way. We learned how to institute POOGI for profit, and that’s what we’re going to unveil in this presentation. We’ll demonstrate how using the concepts from throughput accounting a process of ongoing improvement can be instituted that enables companies to maximize their profitability. Video length: 59:54. PDF: 48 slides.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
POOGIE is about achieving continuous improvement with respect to one's goal and it exists in the form of buffer management for operations, project management, and distribution environments.
Throughput margin, the rate at which the system generates money through sales, is the cornerstone of any process of ongoing improvement. It's not about the physical flow of materials, but the dollar signs associated with those materials.
The rate at which the system generates throughput margin is also the constraint. This eliminates the notion of the constraint moving between the market and operations, and forces us to focus on the rate at which we're generating throughput margin.
Instructor(s)
Brad Stillahn
Brad Stillahn: As the owner of Adstick Custom Labels in the late 1990’s, Brad developed the world’s first comprehensive system – for costing, quoting, and pricing to make more money – based on the Theory of Constraint’s (TOC) Throughput Accounting. With Science of Business, he expanded the Job Shop Pricing System to ensure that it would work universally for complex custom job shops, machine shops, and custom manufacturers of all sizes, types, and a wide variety of industries. Brad was Director of Corporate Marketing for Menasha Corporation, a large privately held, multi-divisional company based in Wisconsin. He previously held a variety of management responsibilities at Owens-Illinois, a publicly traded multibillion-dollar packaging company. Brad is TOCIO certified as a TOC Expert, is a Certified Exit Planner (CExP) by the Business Enterprise Institute, and has APICS certifications in Production and Inventory Management (CPIM) and Integrated Resource Management (CIRM). He received his MBA from Washington University in St. Louis.
Ms Alka Wadhwa
Alka Wadhwa is an experienced consultant and process improvement expert with over 24 years of expertise in the Theory of Constraints (TOC), Lean Six Sigma, and organizational performance optimization. She has successfully led projects in healthcare, financial services, and manufacturing, driving significant improvements such as a 67% boost in hospital operations and a 140% increase in outpatient visits.
Previously, Alka Wadhwa spent 17+ years at GE Global Research Center, where she led initiatives to enhance various GE businesses through advanced technologies, process redesign, and system optimization. Founder of Better Solutions Consulting, LLC, she specializes in using TOC, Six Sigma, and data analytics to streamline operations and build high-performance teams.
Her work has earned her multiple accolades, including the Empire State Award of Excellence in healthcare.
Dr Gary Wadhwa
Dr. Gary Wadhwa is a Board Certified Oral & Maxillofacial Surgeon with extensive experience in the field. He completed his Oral & Maxillofacial Surgery training at Montefiore Hospital, Albert Einstein College of Medicine in Bronx, NY, and has served as an Attending at prestigious institutions like St. Peters Hospitals, Ellis Hospital, and Beth Israel Hospital in NY. With a career spanning over two decades, he was the former CEO and President of a group specialty practice in NY from 1994 to 2015. Dr. Wadhwa holds an MBA from UT at Knoxville, TN, and has undergone additional training in System Dynamics at MIT, Health System Management at Harvard Business School, and Entrepreneurship and healthcare innovations at Columbia Business School. Committed to expanding access to Oral & Maxillofacial Surgery care, he is currently engaged in a meaningful project to provide healthcare services to underserved populations in inner city and rural areas through non-profit Community Health Centers.