Tools & Methodologies

Diagnostic Methodologies
& Transformation Tools

The frameworks, diagnostic instruments, and execution models behind intelligent transformation. Refined across decades, deployed in production environments, measured in value created.

01

How Constraints Are Identified

The first and most important step: locating the system's limiting factor

Constraints aren't found in data charts-they are found in flow behavior.

Proprietary Methodology

Full diagnostic frameworks, tools, and implementation guides available to engagement clients.

Theory of Constraints (TOC) Framework

Five Focusing Steps:

  1. 1. IDENTIFY the system constraint (the bottleneck limiting throughput)
  2. 2. EXPLOIT the constraint (maximize its productivity)
  3. 3. SUBORDINATE everything else to the constraint (align upstream/downstream)
  4. 4. ELEVATE the constraint (add capacity if needed)
  5. 5. PREVENT INERTIA - return to step 1 (constraint moves)

Most organizations violate Step 3-they optimize local efficiency instead of system throughput. Result: inventory pileup, schedule chaos, margin erosion.

Diagnostic Tools

  • Flow Analysis: Map material/information flow. Identify dwell time at each stage. Constraint = longest queue + lowest throughput rate.
  • Throughput Signatures: Plot daily production vs. plan. Constraint shows persistent underachievement pattern. Non-constraints show variability but no systematic gap.
  • Schedule Stability Index: Measure schedule adherence by workstation. Constraint drives chaos-if it's unstable, everything downstream is unstable.
  • Handoff Friction Mapping: Identify information/material handoff failures between functions (planning→production, production→quality, quality→shipping). Behavioral constraints, not physical.

Drum-Buffer-Rope (DBR) Scheduling

DRUM

The constraint sets the pace. Schedule the constraint first-everything else follows. Maximize constraint uptime and productivity.

BUFFER

Time buffer (not inventory) protects the constraint from upstream variability. Typically 3-5 days of work-in-queue at the constraint.

ROPE

Pacing mechanism-release material to the system based on constraint consumption rate. Prevents WIP explosion.

Typical Findings

Constraint is NOT where you think: Leadership assumes Equipment X is the bottleneck. Data shows it's actually quality release cycle or planning instability.

Policy constraints dominate: 60-70% of constraints are behavioral/policy-based, not physical capacity. Example: batch-and-queue policies, approval delays, functional silos.

Efficiency theater: Non-constraints run at 95% utilization (local efficiency), creating WIP chaos. Correct answer: intentional idle time at non-constraints.

02

How Real Behavior Is Mapped

Operating reality ≠ documented process

The truth emerges from behavior.

Proprietary Methodology

Behavioral mapping frameworks, gemba observation protocols, and R/E/A diagnostic tools available to engagement clients.

R/E/A Mapping Framework

Who Actually Decides? Not what the org chart says-what actually happens.

  • Responsible (R): Owns the outcome. Gets blamed if it fails.
  • Exercising Authority (E): Makes the decision. Approves, rejects, prioritizes.
  • Actual Work (A): Does the execution. Hands-on labor.

Classic dysfunction: R sits in one department, E in another, A in a third. Coordination breaks down. Decisions drift. Accountability evaporates.

Gemba Observation Protocol

Go See: Spend 3-5 days on the shop floor, in planning meetings, in quality huddles. Observe handoffs, escalations, workarounds.

What to Track:

  • • Who initiates decisions (request, escalation, exception)
  • • Who approves/rejects (authority exercised)
  • • Wait time between request and resolution
  • • Frequency of rework, re-approvals, do-overs
  • • Informal communication pathways (Slack, hallway, phone vs. system)

Decision Velocity Analysis

Map Decision Pathways: For critical decisions (schedule change, quality deviation, supplier substitution), map:

  1. 1. Trigger: What event initiates the decision?
  2. 2. Information Gathering: Who pulls data? How long does it take?
  3. 3. Analysis: Who evaluates options? Tools used?
  4. 4. Approval: How many sign-offs? Who has veto power?
  5. 5. Execution: Who acts on the decision?
  6. 6. Verification: Who confirms it worked?

Result: "Schedule change takes 6 hours minimum, requires 4 approvals, touches 9 people." This latency kills agility.

Escalation Patterns

Track how often routine issues escalate to management. High escalation rate = authority misalignment or lack of standard response protocols.

Workaround Detection

Systems don't support actual work. People bypass them. Gemba reveals the shadow process-the real workflow vs. documented workflow.

Information Flow Gaps

Critical data lives in spreadsheets, emails, tribal knowledge. Not in systems. Creates brittleness and single-person dependencies.

Why This Matters

Architecture design without behavioral understanding = failure. You'll build systems that optimize documented processes, not actual behavior. Result: expensive systems nobody uses. Start with gemba. Let reality inform design.

03

How the Operating Architecture Is Redesigned

Creating the structural model that synchronizes value creation end-to-end

This step replaces siloed improvements with true operating architecture.

Proprietary Methodology

Operating architecture blueprints, decision-rights frameworks, and workflow design templates available to engagement clients.

Operating Model Design

Decision Rights Matrix: Explicit mapping of R/E/A by decision type (planning, quality, procurement, production). Eliminates ambiguity and coordination delays.

Workflow Architecture: Define process boundaries, handoff protocols, and escalation triggers. Event-driven where possible, batch where necessary. Optimize for flow, not local efficiency.

Governance Structure: Steering committees, tier-1/2/3 huddles, exception handling protocols. Clear accountability and rapid problem resolution mechanisms.

Integration Principles

  • Event-Driven Handoffs: Systems publish state changes. Downstream systems subscribe and react. No batch delays.
  • Clean System Boundaries: Each system has a clear responsibility. ERP for finance/planning, MES for execution, WMS for movements.
  • Master Data Governance: Single golden record for materials, customers, suppliers. Eliminates data drift and reconciliation overhead.
  • API-First Design: All integrations via documented APIs. Reusable patterns, centralized governance, faster onboarding of new systems.

Design Output

Target State Architecture: Visual blueprint showing systems, data flows, decision points, and accountability. Implementation roadmap with 90-day increments.

Transition Plan: Phased migration from current state. Identifies quick wins, critical dependencies, and risk mitigation strategies.

Architecture without a migration plan = shelf-ware. Every design includes the path to implementation.

04

How the 90-Day Value Cycle Works

Fast, structured execution that builds new habits and measurable outcomes

This is NOT a project plan.

This is a performance engine.

Proprietary Methodology

90-Day execution playbooks, cadence design templates, constraint KPI frameworks, and value council operating models available to engagement clients.

30

Days 1-30: Stabilization

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  • \n \u2022\n Baseline Metrics: Establish current state performance (throughput, cycle time, quality, WC).\n
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  • \n \u2022\n Constraint Focus: Ensure everyone understands the system constraint and subordinates to it.\n
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  • \n \u2022\n Daily Cadence: Tier-1 huddles (15 min, daily) at constraint workstations. Visual boards, problem escalation.\n
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  • \n \u2022\n Quick Wins: 3-5 tactical improvements identified and implemented (reduce changeover, eliminate wait time).\n
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\n 60\n
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Days 31-60: Synchronization

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  • \n \u2022\n Cross-Functional Alignment: Planning, production, quality, logistics operating in sync. DBR scheduling implemented.\n
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  • \n \u2022\n Process Handoffs: Event-driven integration where possible. Eliminate batch-and-wait delays.\n
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  • \n \u2022\n Value Council: Weekly steering meeting (COO, VP Ops, VP Supply Chain, CIO). Review KPIs, resolve blockers.\n
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  • \n \u2022\n Behavior Shifts: Decision authority clarified. Escalation patterns stabilizing. Workarounds being eliminated.\n
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\n 90\n
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Days 61-90: Performance Shift

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  • \n \u2022\n Measurable Uplift: Throughput \u219110-20%, cycle time \u219115-25%, on-time delivery \u219110-15 points.\n
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  • \n \u2022\n Financial Impact: Working capital improvement visible. Margin uplift from better mix and reduced expedites.\n
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  • \n \u2022\n Constraint Shift: Original constraint lifted. Identify next constraint. Repeat cycle.\n
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  • \n \u2022\n Pattern Lock-In: Cadence, governance, KPIs embedded. Operating rhythm sustainable without external support.\n
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Why 90 Days?

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Long enough to deliver measurable business value. Short enough to maintain urgency and avoid scope creep.

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Cadence creates momentum. Teams see results quickly. Reinforces new behaviors. Builds confidence in the approach.

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Multiple cycles compound value. Cycle 1: $2-5M. Cycle 2: $3-7M. Cycle 3: $5-10M. Each constraint lifted creates platform for next improvement.

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Traditional 18-month transformation programs fail because value arrives too late. 90-day cycles deliver value early, often, and visibly. CFOs and PE partners love this.

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Governance Structure

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  • \u2022 Tier-1 Huddles: Daily, 15 min, at constraint
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  • \u2022 Tier-2 Huddles: Daily, 30 min, cross-functional ops
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  • \u2022 Value Council: Weekly, 60 min, executive steering
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  • \u2022 Board Update: Monthly, progress vs. plan
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Success Metrics

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  • \u2022 Throughput (units/day at constraint)
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  • \u2022 Cycle time (order-to-ship, plan-to-produce)
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  • \u2022 On-time delivery (OTIF %)
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  • \u2022 Working capital (inventory turns, cash conversion)
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  • \u2022 Quality (first-pass yield, scrap/rework cost)
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Ready to apply these methodologies
to your transformation?

These aren't theoretical frameworks. They're production-tested tools deployed in manufacturing, pharma, and PE portfolio companies where failure isn't an option.

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