TOCICO

Achieving the red curve of growth and the green curve of stability is an important aim in the TOC framework but it continues to be a challenge for many organizations. One critical aspect is the continuous development of the necessary skill set to support flow and growth of the organization while providing an increasingly meaningful and satisfactory work environment. The term “skill” means a person’s ability to perform a job or a task, it is a combination of training, learning, knowledge, and experience. The generic TOC solutions for creating and protecting flow in operations (DBR, distribution) have a tendency to focus more on required equipment (machines, work centers) than on the people involved with the activities. Even when considering “physical” resources as a combination of equipment and operator, there is a risk to ignore the critical role of human resources. This might actually create a bottleneck and slow down the flow. This is obvious if the bottleneck machine stands idle due to an operator not being present. However, it is less clearly visible if an operator is present but is not able to perform the machine’s work at the speed required to maintain system flow and throughput. Another example: Typically, Critical Chain Project Management understands a resource as a person. A higher skill level of a person means faster execution, better quality etc. So the skill level of the individual who is assigned to a given task is one determining factor for the duration of that task as well as whether there may be downstream issues with the results created in that task. In turn, the skill level determines as well the actual project lead time. In order for skills to not become bottleneck (that is impeding flow) or a constraint, the skills of the people within an organization must be aligned with the current and future demand for those skills and what is required to protect and promote flow. This is especially critical in economies that enjoy high levels of employment and shortages of certain skills. This presentation introduces the concept and practice of the multi-skill grid as a simple tool and process to improve management and development of human resources for better flow in supply chain and project operations. The model can also be used in service industries or in any other environment where skills play an important role. The model also establishes a link between skill development and organizational strategy. Furthermore it is valuable for personal development, allowing to describe and manage one’s own skill development path. This presentation covers the following: Understand and learn how to assess and categorize current skill levels across critical dimensions (the multi-skill grid), representing the current state; both when regarding individuals as well as functions. Identify current or potential skill-based bottlenecks. How to create a development path that aligns strategic, tactical, and operational objectives with employee development.