15th TOC Korea Conference

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1 TOC Korea Conference th TOC Korea Conference Better Performance through Problem Solving October 20, 2016 at Center, Seoul, South Korea CEO Keynotes Suk Keun Cha, Co-Founder & CTO at ACS Dong Yun Kim, Representative Doctor at Seoul Chuk Hospital Yongjin Kim, President & CEO at DY Peter Kim, CEO at Project Research Sessions [Cases] A Report of Pyeongtaek city on Operating a TOC-TP Learning Club Application of Simplified CCPM and its Performance Making a Better Hospital in Patients Service, Employee Works and Financial Bottom Line Innovation in a Research Organization with Thinking Processes Development of a TOC based Quality Management System and its Performance TOC based Production System Design: its Validation via Simulation POOGI on Operational Excellence System [Methodologies] A Simplified Change Matrix Cloud: An approach and example Applying Thinking Processes for Leadership Coaching Integrating Marketing and Sales: A Roadmap from Strategy to Execution

2 We are to show a way Though the pathway to business improvement has several, I think there are only two kinds of categories; One is to use the generalized method obtained from successful outcomes, the other to use a general-purpose method designed beforehand. TOC(Theory of Constraints) corresponds to the latter and was named 'Theory of Constraints' as to resolve the core(root) problems finally giving us good answers. TOC has already yielded uncountable number of success stories in the world. The industrial performances have been the center of the stories while expanding to public organizations, service sectors, educational institutions, and personal lives. In this country over the past 15 years since our conference started, many of successfully applied practices have been introduced. The statistics of published presentations shows 73 cases from companies(manufacturing, distribution, development, services, and strategies), 4 cases from public agencies, and 13 cases of private lives (education, problem solving). This continuous utilization of TOC for management stems from the fact that it provides us with rigid theoretical support as well as practical wide-range tools. TOC is to create a solution to the underlying problems that cause many critical symptoms, and then manifests benefits through constructing management systems/processes. Here will be announced this year seven cases. Examples are the activities of the company to progress steadily for several years, newly started activities in a company, patient services improved in a mid-sized hospital, and innovation outcomes in organizations. And through three practical methods suggested we look forward to the possibility of sustainable development. This year in particular we have special hours to listen to key-notes by eminent CEOs. We all are in need of substantial definitive opinion in the fourth round of industrial revolution swell. From these industry CEOs, we will get in deep insights with a tutorial of realistic business improvement in terms of technology and management. Now is the time of heartfelt harmony than ever. Situations of conflict are being continued between planning and execution, groups and individuals, technical and operational. To this 2016 Korea TOC Conference', we respectfully invite you. We are proud of offering an opportunity to get around new challenges of management Namkee Chung President, TOC Korea Association 2 TOC Korea Conference 2016

3 Summary of CEO Key-notes Key-note 1 On building Smart Factory platform and pilot plant application, Suk Keun Cha, Co-Founder & CTO at ACS With the introduction of the 4th Industrial Revolution, our government Ministry announced a supporting plan for Smart Factory and innovations measures to implement the creative economy of manufacturing. This will be an introduction to and overview of the main achievements of the Smart Factory to perform a task carried out in future wealth creation challenges. Key-note 2 TOC Management Practice in Orthopaedic Hospital, Dong Yun Kim, Representative Doctor at Seoul Chuk Hospital While abroad applying TOC in the management of hospital is on a trend of gradually increasing, its domestic adoption is rare. I m sharing here my experience how TOC is introduced at 100-bed hospital specializing in Orthopaedic treatments. It will be presented the practices of process improvement and the resulting performances. Key-note 3 Barriers to TOC management practices and ways of overcoming, Yongjin Kim, President & CEO at DY I think that South Korea companies are faced with some fundamental issues for amendment. I m suggesting an analysis of the factors that hinder the introduction of TOC management. Also I am talking about the role of leader for the success of the company's turnaround and change management in the perspective of practical application of TOC. Key-note 4 A case of PMO governance in ICT companies(kt, HUMAX), Peter Kim, CEO at Project Research the WBS is essential in terms of scope, schedule,. and human resources. Additionally what is needed here is the traceability. In this presentation I will share techniques for multi- project governance according to two cases carried out. One is the PMO of the IPCC project consisting of more than 20 projects of KT, and another is the project governance at the HUMAX where the critical issues are product, quality, human resources and customer needs. 3 TOC Korea Conference 2016

4 Program start end duration Program 9:00 ~ 9:15 15Min Registration 9:15 ~ 9:30 15Min Geetings: Namkee Chung, President of TOC Korea Association 09:30 ~ 10:10 40Min Key-note 1: On building Smart Factory platform and pilot plant application, Suk Keun Cha, Co-Founder & CTO at ACS 10:10 ~ 10:20 10Min Intermission 10:20 ~ 11:00 40Min Key-note 2: TOC Management introduced into an Orthopaedic Hospital, Dong Yun Kim, Representative Doctor at Seoul Chuk Hospital 11:00 ~ 11:10 10Min Intermission 11:10 ~ 12:00 50Min 12:00 ~ 13:00 60Min Key-note 3: Barriers to TOC management practices and ways to overcome, Yongjin Kim, President & CEO at DY Lunch 13:00 ~ 13:50 50Min Key-note 4: A case of PMO governance in ICT companies(kt, HUMAX), Peter Kim, CEO at Project Research Case: A Report of Pyeongtaek city on Operating a TOC-TP Learning Club, Yonghun Chung, Pyeongtaek city 13:50 ~ 14:00 10Min Intermission 14:00 ~ 14:50 50Min Case: Application of Simplified CCPM and its Performance, Yeongpyo Kim, Hwacheon Machinery Co. Case: Making a Better Hospital in Patients Service, Employee Works and Financial Bottom Line, Sunmi Park and Jongwan Yoon, Seoul Chuk Hospital Case: Innovation in a Research Organization with Thinking Processes, Youngsoo Park, Future Management Research 14:50 ~ 15:00 10Min Intermission 15:00 ~ 15:50 50Min Case: Development of a TOC based Quality Management System and its Performance, Gyungchun Oh, Hwacheon Machinery Co. Case: TOC based Production System Design: its Validation via Simulation, Hyungrok Kwon and Hyunsun Kim, Seoam Machinery Co. Methodology: A Simplified Change Matrix Cloud Method: An approach and examples, Wonjoon Choi, The University of Ulsan 15:50 ~ 16:00 10Min Intermission 16:00 ~ 16:50 50Min Case: POOGI on Operational Excellence System, Junsoo Kim, Hwacheon Machinery Co. Methodology: Integrating Marketing and Sales: A Roadmap from Strategy to Execution, Namkee Chung, Chonnam National University Methodology: Applying Thinking Processes for Leadership Coaching, Youngjune Park, Question Design Reseach 16:50 ~ 17:00 10Min Closing 4 TOC Korea Conference 2016

5 Summery of Case and Methodologies1 In February 2008 gathered 13 people of Pyeongtaek city officials. Since then every Saturday they have taken their time to study TOC-TP. This learning group Onnuri grew now to have 63 members. Presented here is its activities which has led to many operating practices. Yonghun Chung (Pyeongtaek city) A Report of Pyeongtaek city on Operating a TOC-TP Learning Club It is difficult to comply with the prescribed deadlines by limited resources in new product development projects. The difficulties to prioritize between projects frequently cause uneven distribution of resources and delivery delays. To solve this problem, we devised a 'simplified CCPM (Critical Chain Project Management)'. This is an application of CCPM to use a simple buffer management tool called Visual Board. Consequently we have experienced better performance to shorten development leadtime.. Some problems of our hospital are losing money every year, dissatisfied employees, and not meeting the service needs of patients. In order to improve it TOC was applied to several departments, the main themes of which were "MRI operating rule", "outpatient services process", and "ward rounding schedule." We introduce our works and achievements advanced during a year. This introduces a case study where an organization solves in an autonomous manner its business issues facing challenge. Included are the company profile, situation analysis, research and organizational issues, derivation of alternatives, and action plan. Some diagrams of Thinking Process are adopted. Yeongpyo Kim (Hwacheon Machinery Co.) Application of Simplified CCPM and its Performance Sunmi Park,Jongwan Yoon (Seoul Chuk Hospital) Making a Better Hospital in Patients Service, Employee Works and Financial Bottom Line Youngsoo Park (Future Management Research) Innovation in a Research Organization with Thinking Processes 5 TOC Korea Conference 2016

6 Summery of Case and Methodologies2 In spite of ceaseless quality improvement activities, the corresponding solution was ineffective. Internal/external quality issues are always present and were being repeated while this cycle of customer complaints is unabated. In order to establish fundamental measures TOC-based prioritization system has been built. The quality issues related are classified and registered as either events or projects. Then we focused on the processing priority and delivery, which are managed by posting traffic light. This made the resource capacity exposed clearly so that each of us can recognize which work to concentrate. In a mixed flow production environment of which batch size is small, TOC-based production control system is designed. We present the details of what has limited our productivity so far and how to overcome it. We prepared a simulation tool to verify whether this conforms to improve our planning mechanism for delivery performances. The Change Matrix has become an important concept in TOC change management since it was introduced by Dr. Eli. Goldratt. It covers four facets which should be taken into consideration when making people buy-in the new changes in management and/or daily life. Dr. Alan Barnard proposed the Change Matrix Cloud by combining it with the Cloud. The Change Matrix Cloud has been applied in various areas. In this presentation, it will be shown that the Change Matrix Cloud can be simplified by following the definition of the Cloud. And a model of an integrated process of a change management using this simplified version of the Change Matrix Cloud will be proposed with some examples. Gyungchun Oh (Hwacheon Machinery Co.) Development of a TOC based Quality Management System and its Performance Hyungrok Kwon,Hyunsun Kim (Seoam Machinery Co.) TOC based Production System Design and its Validation via Simulation Wonjoon Choi (The University of Ulsan) [Methodology] A Simplified Change Matrix Cloud Method: An approach and examples I briefly introduce the Operational Excellence system which has been implemented 2010 in accordance with TOC-DBR. Then explained is the daily/weekly Buffer Meeting having conducted for another six years. It is a kind of continuous improvement activity(process of Ongoing Improvement) which tackled undesirable effects of the factory. In reality Marketing and sales are not likely to be separated, especially in B2B business. This presentation is to define their boundaries and then integrate both into one model. Sales activities are designed with Sales Pipeline and marketing strategy is organized by the outline of Mafia Offer development. A template of this model is shown so that you could turn it into practice. Seeking ways to take advantage of the Thinking Process for the production of improved leadership. And to explore the possibility of applying TOC-based coaching. Specifically, it deals with the UDE (UnDesirable Effect), TOC basic premise and coaching philosophy, leadership coaching practice utilizing TOC-TP, and the reason why leaders need TOC-TP. Junsoo Kim (Hwacheon Machinery Co.) POOGI on Operational Excellence System Namkee Chung (Chonnam National University) [Methodology] Integrating Marketing and Sales: A Roadmap from Strategy to Execution Youngjune Park (Question Design Reseach) [Methodology] Applying Thinking Processes for Leadership Coaching 6 TOC Korea Conference 2016

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