This week in Bad Nauheim, Germany The Theory of Constraints International Certification Organization (TOCICO) is holding its annual conference. One of the presenters was an Executive Officer from Mazda Motors who made a presentation on how using TOC has helped turn Mazda around. In this posting I wanted to share a press release from this conference which reinforces what I have been saying about TOC.
Mazda Executive Credits Theory of Constraints for Company Turnaround
Mr. Mitsuo Hitomi, Executive Officer from the Mazda Motor Corporation Power Train Development Division presented the opening keynote address at the largest TOCICO (Theory of Constraints International Certification Organization) conference ever held on how Critical Chain Project Management enabled Mazda to quickly develop their innovative SkyActiv capability.
Bad Nauheim, Germany, June 03, 2013 --(PR.com)-- At the 11th annual conference for theory of constraints professionals, Mr. Mitsuo Hitomi described the crisis faced by Mazda to offer creative and innovative exhilarating driving to those people who still hold dear the love of motion experienced as a child while surviving four straight years of significant financial losses. Mr. Hitomi described the last chance for Mazda to survive by developing technology that would achieve low fuel consumption from an internal combustion engine that would rival a hybrid engine, no compromise in the driving pleasure, and affordable for all customers. The product development cycle had to be cut in half for Mazda to survive. Starting with Critical Chain Project management education in 2007, the momentum grew within the company for holistic project management until the development project duration was cut by half. Mr. Hitomi then described how this new technology was applied in a multi-project environment with all projects delivered with full scope on time.
Rami Goldratt, CEO of Goldratt Consulting, said, "Mazda gives the world another great example of the power of TOC to generate results previously thought not possible - financially, operationally, and at least as importantly, in the growth and harmony of the people themselves."
Mazda has won 73 awards for its SKYACTIV technology as of 20 January 2013 including Japan Car of the Year for the CX-5, Best SUV of the Year, Green Awards 2012. The CX-5 is the most sold car in Japan for 2012 and has sold three time more than last year's diesel cars sold total in Japan.
Yuji Kishira, Regional Director for Goldratt Consulting Japan, said, "I am so happy that Mazda is among the growing number of major Japanese organizations that are using TOC and with it, not just improving the performance the company, but also really improving our country and the lives of the people in Japan. My hope is that other companies around the world will take notice and see that with TOC, it really is possible to improve results for the shareholders while simultaneously bringing more value to the customers, while at the same time improving the harmony throughout the company."
Mr. Hitomi received warm applause as he presented the remarkable results in the improved quality of working life and the financial results for 2013 where Mazda has returned to the black after a continuous four year fiscal red ink.
Mr. Mitsuo Hitomi after the presentation said "The audience reaction was beyond my imagination. I want to share this warm applause from TOC society back to all Mazda people in Hiroshima and partners suppliers. I know there is so much more to do. I will continue our journey of TOC with mindset of "Even sky is not the limit."
About TOCICO (tocico.org): The Theory of Constraints International Certification Organization (TOCICO) unites people who share a passion for win-win holistic thinking and share a vision that this will become the main way to manage organizations. The TOCICO is a global not-for-profit certification organization for TOC practitioners, consultants and academics to develop and administer certification standards, and facilitate the exchange of latest developments. The TOCICO holds an annual conference to share new knowledge and provide a unique networking opportunity.