Toc is a combination of three different but related breakthroughs • toc is in fact a brand-new management philosophy; • toc promotes a research approach that evolves from traditional basic science and that responds to a system that includes not only atoms and electronics, but also people; • a series of solid toc applications that make toc famous. • winning in competition. • how to motivate staff to strive for upstream and continuous improvement, and we often hear about the importance of delegation of authority, communication and team spirit, but how can it actually be done? • how to shorten the time taken to develop new products. • the biggest challenge is the client's effective output and cost • the generality of what was stated on the previous page is merely a symptom, and toc believes that they all originate from the same core, and how can it be validated? • most managers want to manage effectively, and i'm sure that not many people ask themselves every morning: “how should i bring down the company today? • it is sufficient to agree on two conditions: in order to manage effectively, managers must control costs and, at the same time, must guarantee effective output, that is, they have to ensure that the products that meet the requirements are delivered to the clients who need them, and ultimately pay them satisfactorily. Effective outputs and costs • controlling costs and safeguarding effective outputs are two essential conditions that we cannot meet only one and ignore the other. And what i'd like to say now is that they represent two different types of management philosophy, and there's no room for compromise, and let me use a metaphor to explain that the company is a chain of costs – the closest thing in our chain is the weight, the weight of each ring, and if we want to know the total weight of the institution, one way is to add up the weight of all the rings, and we'll use it to show that control costs mean a management model. Suppose you're in charge of the whole chain, i'm in charge of a department, a ring, and now you're ordering me to "improvement," and i'm very good at it, and i'll come back and report to you soon: with my creativity, time and money, i've improved my ring, and he's a hundred grams lighter, you're not interested in my ring, you're concerned about the whole chain, but when i say i'm 100 grams lighter, you know the whole chain is 100 grams lighter, and you know what that implies? This implies a management philosophy: any partial improvement will automatically evolve into an enterprise-wide improvement, in other words, in order to achieve an overall improvement, we must initiate a number of partial improvements. • first, let us clarify the nature of effective output. The links to effective output are of course important in themselves, and the link between the ring and the ring cannot be ignored. What's closest to the nature of the effective output in our chain? What is dominated not only by the rings, but also by their interactions? The answer is not the weight of the chain, and if we remove the connection between the rings, the rest is a scattered ring, and the total weight of the ring remains the same. What determines the strength of a chain? And how many of the weakest rings do a chain have? Now, let's see what that means. You're still in charge of the whole chain, and i'm still in charge of a department, and since the weakest ring is only one, let's take a more ordinary example, assuming i'm in charge of a department, but not the weakest ring, and as always, you're asking me to change, and i'm going to come back and i'm going to report to you, and i'm going to do it with my creativity and time and money, and i'm going to do it, and i'm going to strengthen my ring, and i'm going to do it three times better, and i'm going to give me a medal. Don't forget, you're not really interested in my ring, you're concerned about the chain, and my ring isn't the weakest legacy, and if i strengthen it, how much will your chain increase? No, absolutely nothing. • can you see what we're dealing with? • most of the partial improvements are not helpful to the whole! And what we want to improve is the enterprise as a whole, and any improvement will require spirituality, time and money. The improvement of the enterprise as a whole will certainly not be achieved through the introduction of many partial improvements, which is by no means an option. The relationship between the world of costs and the world of effective output • what is the situation now? In order to control costs, managers must manage on the basis of the `cost world', and, on the other hand, in order to guarantee effective output, they must manage on the basis of `effective production from the world'. Can they balance the two? • strictly restricting the world of overtime costs; the relationship between the world of costs and the world of effective output • in today's environment, such companies are becoming increasingly difficult to survive, why? Because of the compromises and compromises that were acceptable yesterday, today can no longer be tolerated, not because we're picky, but because the demands of our clients have increased dramatically. Ten years ago, 80% of our cargo was on time, and they were already satisfied that today, 90% of our delivery was on schedule, and the clients were making noise. Ten years ago, we produced the best products, and today, if we move out something of the same quality, we're going to be returned by our clients. It is becoming increasingly difficult to guarantee effective output, and the space for compromise and compromise on which we used to depend no longer exists. The relationship between the world of cost and the world of effective output • as you all know, focus is essential. It is not possible to successfully control costs and secure effective outputs by an uninformed and focused manager. But for us, what's called focus? We usually get 80 per cent of the benefits from the 80/20 law, which focuses on only 20 per cent of the problem, which is a statistical general rule, but the general teacher of statistics knows that the 80/20 law only applies to a number of systems that are independently disguised, and only to the cost world that separates each ring. The relationship between the world of cost and the world of effective output • what about the world of effective output? Because our institutions usually have many rings, much more than five, and it's clear that 20% improvement means that much of the improvement does not help the institutional system, the link between the ring and the ring is important, the variation is interdependent, and the 80/20 law doesn't apply. Think about the chain, and think about the weakest one, which determines the strength of the whole chain. What must be the first step if the chain is to be strengthened? • we can easily discover that there are two types of constraints, the first being in kind, for example, bottlenecks, which are one of the resources that are characterized by insufficient capacity to meet demand, and that the weakest part of strengthening is to improve bottlenecks and make them more productive. • but we should not lose sight of another broad category. When constraints are not the same, but rather a deeply poignant policy, strengthening the weakest link should not be interpreted as helping the wrong policy to do more, and what we must do is replace it as soon as possible。system bottlenecks addressed
