We are redesigning our website. So, please be patient and visit us soon.

This website will be dedicated to the implementation of TLSBlue Framework, as explained in the book, with case studies from our assistance in various industries, but without disclosing our client's information.

We will also include sections reflecting roadblocks and dilemmas from different sources and our suggestions for resolving them.

In the meantime you can review the Introduction and the Tables of Contents and Figures and the Epilogue.

INTRODUCTION

TLSBlue is a methodology conceived and developed by the author as one to integrate Lean and 6σ with Theory of Constraints (TOC) to achieve and sustain a Blue Ocean.

Therefore, let’s take a brief look as to how Lean, 6σ, TOC, and Blue Ocean Strategy came about.

TQM as the Predecessor

Since the 1920s, some of the first seeds of quality management were planted as the principles of scientific management swept through U.S. industry. Then, in the 1930s, Walter Shewhart developed the methods for statistical analysis and control of quality. But it was not until the 1950s that W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and executives, and to many this is considered the origins of Total Quality Management (TQM).

During the 1950s, key additional contributions were made by: Joseph M. Juran, who taught the concepts of controlling quality and managerial breakthrough; Armand V. Feigenbaum’s book Total Quality Control, a forerunner for the present understanding of TQM; and Philip B. Crosby’s promotion of zero defects, which paved the way for quality improvement in many companies.

It was not until 1968 that the Japanese approach to company-wide quality control, and Kaoru Ishikawa’s synthesis of the philosophy, which contributed to Japan’s ascendancy as a quality leader, began to be of interest to the western world. But it was not until the late 1970s and early 1980s that North America and Western Europe suffered economically in the face of stiff competition from Japan's ability to produce high-quality goods at competitive cost. Thus, the western world began to imitate and adapt the Japanese success, and it became a cultural revolution in the business and academic world, setting the term Total Quality Management.

6σ Origins

Six Sigma (6σ) is a set of techniques and tools for process improvement or process design. It is rooted in the normal distribution and the techniques for statistical process control (SPC) in manufacturing processes.

From the works and publications of Juran, Feigenbaum, and Crosby in the 1950s and Deming’s contributions to the Japanese success, it became evident to Bill Smith of Motorola in the 1980s that western manufacturers could not compete with Japanese manufacturers unless drastic changes were made in the quality of their products. This led Motorola to envision a methodology for moving from the mentality of measuring defects per thousand opportunities to measuring defects per million opportunities, and to set the goal of producing at levels of less than 3.4 defects per million opportunities (3.4 DPMO).

The Six Sigma methodology, from the perspective of SPC, required major cultural changes in the organization and a new mindset that could only be achievable by integrating TQM with Six Sigma, and thus Six Sigma became a process for continuous efforts to improve towards 3.4 DPMO while achieving stable and predictable process results. Motorola is said to have documented savings of more than $16 billion from Six Sigma efforts, although it lost $4.3 billion from 2007 to 2009 and it was split into two companies.

Lean Origins

No matter how much credit is given to Henry Ford for Lean, categorically much deserving credit to this giant, it was Taiichi Ohno the one who led the development of the Toyota Production System (TPS) that many have tried to copy with almost no success. John Krafcik coined the term Lean Production System (Lean) after his experience as a quality engineer in the Toyota-GM NUMMI joint venture in California.

The Lean Production System differs quite significantly from the Toyota Production System, as the TPS’s focus is upon improving the "flow" or “smoothness of work,” thereby steadily eliminating mura ("unevenness") through the system, while Lean is the set of "tools" that assist in the identification and steady elimination of waste. Both Lean and TPS can be seen as a loosely connected set of potentially competing principles whose goal is cost reduction by the elimination of waste.

Nowadays, as most of the tools and techniques of 6σ are incorporated in Lean, making it confusing to separate what tools are for Lean and for 6σ, Lean has become Lean-Six-Sigma (LSS) as a set of tools for eliminating waste.

Although LSS has become integrated into most academic teachings in western colleges and universities, there is almost no substantiated evidence of successes and, on the contrary, innumerable disappointments.

TOC Origins

The Theory of Constraints (TOC) is an overall management philosophy introduced by Eliyahu M. Goldratt in his 1984 book titled The Goal, that is geared to help organizations continually achieve more of their goals. Goldratt adapted the concept to project management with his book Critical Chain, published in 1997.

Although many assert, rightly so, that it was Wolfgang Mewes who first published about power-oriented management theory in 1963 and then about bottleneck-focused strategy in 1971, the paradigm “Theory of Constraints” was first used by Goldratt.

The theory of constraints is based on the premise that the rate of goal achievement by a goal-oriented system (i.e., the system's throughput) is limited by at least one constraint. The denial of this premise would lead to a system not prevented from achieving infinite throughput, and that is impossible in real-life systems. Therefore, only by increasing flow through the constraint can overall throughput be increased in a real-life system, and this where one must focus improvements.

TOC has evolved from its initial application in manufacturing to service, financial, research & development, healthcare, government, and all types of industries, including project-oriented businesses. A vast set of tools were also developed for TOC’s thinking process, as it became evident early on that the mindset of management was in itself a major constraint for improvement.

Blue Ocean Strategy Origins

In 2005 W. Chan Kim and Renée Mauborgne published a book titled Blue Ocean Strategy that became an overnight success. A blue ocean is the result of creating uncontested market spaces where competitors are made irrelevant.

It is argued that rather than a theory, blue ocean strategy is an extremely successful attempt to brand a set of already existing concepts and frameworks with a highly "sticky" idea. The blue ocean/red ocean analogy is a powerful and memorable metaphor, which is responsible for its popularity. This metaphor can be powerful enough to stimulate people to action. The concepts behind the Blue Ocean Strategy (such as the competing factors, the consumer cycle, non-customers, etc.) are not new, however. Many of these tools are also used by Six Sigma practitioners and proposed by other management theorists.

There are no defendable success references to Blue Ocean Strategy other than the ones the authors describe in their book. A critical question is whether the book and its related ideas are descriptive rather than prescriptive. The authors present many examples of successful innovations, not attributable to their strategy, and then explain each success from their Blue Ocean perspective, essentially interpreting success through their lenses.

Although there is nothing wrong with evaluating what has been successful and from there trying to develop a methodology or strategy to replicate similar successes, such a strategy or methodology will only be effective when implemented, generating unquestionable success.

The Future

Other than the great success of the Toyota Production System (TPS), very few successes have been documented of implementing TQM, 6σ, Lean, and Blue Ocean Strategy, and those claims of successes are much controversial. TPS took decades to develop in Toyota, under the leadership of its principal developer, Taiichi Ohno, inspired by Henry Ford and what he tried but never accomplished at Ford Motor Company. The success of Toyota is well documented and fully attributed to its Toyota Production System (TPS).

As TQM, Six Sigma, and Lean tried to adapt TPS, the methodologies created became more important than the purpose for which each justified its implementation. Awards were created to recognize those implementing each methodology without regard to the final outcomes. It was taken for granted that if the methodology was institutionalized, eventually the benefits would materialize—it hasn’t been so.

Green-belts, brown-belts, and black-belts labels were given to those training to implement the 6σ methodology, and a massive consultant training business was established at universities, colleges, and big consulting firms. Businesses sold on the quality movement destined millions to train employees on the tools promoted by the selected methodology.

It took decades of hard work to develop the Toyota Production System in Toyota. Thus, the westernized methodologies offered a 4-year horizon for benefits to materialize, as if it were a US presidential term, and businesses accepted it without questioning why. The end result has been that most businesses grew, but in dissatisfaction with the promises for lack of sustainable bottom-line results.

The quality movement tools are excellent tools, some from variations of previously existent tools and most from adaptation from TPS. But tools are only tools, each to be used when appropriately required for the job that needs it. Don’t blame the hammer when using it to try to drive in a screw.

Contrary to TQM, Six Sigma, and Lean, TOC has had a slow but robust aggregation of successes. TOC does not reject the use of any of the tools from the quality movement, but its conceptual framework is different, and the tools developed by TOC are so effective that in most situations there is no need to implement many of the quality movement tools. Maybe this is the reason why the acceptance of TOC has been slower.

Therefore, TLSBlue is a methodology for continuously pursuing breakthrough improvements to achieve and sustain a blue ocean. The final outcome is uncontested markets where main competitors become irrelevant, which is achievable following the underlying concepts of TOC and integrating tools from Lean and Six Sigma if and only if required.

As a half Missourian, “show me” is an essential criterion to accept any claim. Therefore, TLSBlue walks you through a building process to move forward with breakthrough improvements to create a sustainable Blue Ocean.

This Guide for implementing TLSBlue walks you through the steps to implement a Culture of Breakthrough Improvements aimed at developing and maintaining a Blue Ocean Strategy, navigating in uncontested markets where main competitors become irrelevant.

First, understand that any opportunity for improvement is basically a project that requires to be structured and managed to satisfy a scope within a budget and timeframe. As an organization, there will always be multiple opportunities for improvement that will be identified and therefore create the need to live in a multi-project environment. So, managing projects in a multi-project environment normally deals with limited resources and requires prioritizing the sequence and timing for releasing project execution.

Also, improvement projects are usually identified as “needs for improvement” without a clear knowledge of what changes are required and how those changes should be implemented. Many times, an opportunity for improvement in a specific operation or process requires changes in another operation or process that seems to be doing fine, thus potentially elevating human resistance to change. To effectively improve, it is important to be aware of reasons why people might resist the pretended changes and find ways of encouraging their active cooperation.

Implementing this TLSBlue approach will not only bring breakthrough improvements to your business or organization, but it will also allow you to materialize the benefits of those improvements in the shortest possible time.

Guides or how-to books, expect that you, as a reader, have some knowledge of the elements addressed in the guide or how-to book. Therefore, this guide will first explore the foundations and basic understandings required for pursuing its implementation.

The Guide for Implementing TLSBlue is divided into four parts and each part into chapters. Part I explains the importance of TLSBlue for navigating in Blue Ocean waters and leveraging on breakthrough improvements; it also presents an analogy, to travel in time-space and always cruise Blue Oceans. Part II shows the conceptual foundations of integrating Theory of Constraints, Lean & Six Sigma (TLS), and the essence of active subordination to exploit the benefits of TLS. Part III deals with preparing for implementation. Finally, Part IV provides the step-by-step guide to implement TLSBlue and manage improvement projects.

Epilogue

The TLSBlue framework not only redefines operational excellence but also reimagines how organizations must structure their strategic leadership to thrive in an ever-changing market. Central to this is the establishment of a "Strategy Unit"—a forward-thinking team closely aligned with the "Board of Directors" and the "CEO." This unit serves as the bridge between visionary leadership and practical execution, ensuring that the organization remains agile, proactive, and constantly pursuing growth.

Challenging Visions and Translating Them into Action

The primary function of the Strategy Unit is to challenge conventional thinking, continuously assessing the market for new opportunities. By applying the principles of "Blue Ocean Strategy," the unit works with the executive team to chart pathways into untapped markets, always considering the systemic constraints outlined by "Theory of Constraints (TOC)."

Once these visionary goals are established, the Strategy Unit's next responsibility is to translate them into actionable initiatives. These are not vague aspirations but clearly defined "multifunctional improvement projects" designed to drive growth. To do so, the unit relies on "Critical Chain Project Management (CCPM)" for scheduling, resource allocation, and maintaining momentum through systemic bottlenecks. CCPM is the project management model developed by Goldratt.

Throughput Accounting: Guiding Decision Making

Decision-making within the TLSBlue organization is guided by "Throughput Accounting" rather than traditional cost accounting. Throughput Accounting focuses on maximizing the system's ability to generate value (or throughput) by understanding the real-time impact of decisions on the system’s constraints. This shift in focus ensures that the Strategy Unit, alongside the financial team, prioritizes investments and projects that directly contribute to the organization's long-term growth potential.

By prioritizing Throughput and minimizing non-essential inventories and expenses, Throughput Accounting allows companies to make more strategic decisions aligned with their long-term objectives.

Traditional prioritization on operating expenses rather than performance leads to suboptimal decisions and limits a company’s growth. Throughput Accounting offers a more holistic and value-focused perspective, allowing companies to make smarter decisions and improve their financial performance.

There are many sources to learn more about Throughput Accounting, like Thomas Corbett’s book Throughput Accounting, and many articles available in the Web. We recommend for you to seriously evaluate the merits of Throughput Accounting when compared with any of the traditional Cost Accounting options.

Skills and Competency Development for Future Readiness

The Strategy Unit doesn't just focus on the present—it also acts as the architect of the organization's future capabilities. One of its critical functions is to "envision the skills and competencies" that will be essential in the coming years. It proactively identifies gaps and emerging needs in the organization's talent pool, taking the lead in designing "training and development initiatives."

This involves empowering existing personnel by providing them with the tools and knowledge they need to stay ahead of industry trends. Whether through internal training programs or external partnerships with educational institutions, the Strategy Unit ensures that the organization is always "ready for the next challenge," fostering a culture of continuous learning and improvement.

The Role of Leadership in Organizational Transformation

The involvement of the Board of Directors and the CEO is essential. Leadership must provide the long-term vision and the resources necessary to support the Strategy Unit’s initiatives. The strategic alignment between the visionaries at the top and the executors on the ground, ensures that the organization is both "innovative and operationally sound."

A Closing Thought

A TLSBlue organization is more than just a collection of methodologies. It is a "dynamic, evolving system" built on the principles of "continuous improvement" and "strategic foresight." By integrating "Blue Ocean Strategy," "TOC," "Lean," "Six Sigma," "Critical Chain Project Management," and "Throughput Accounting," and by focusing on the "people and skills" that drive the future, TLSBlue provides a holistic, robust approach to achieving sustained growth and operational excellence.

In a world where uncertainty is the only constant, organizations structured around TLSBlue will be the ones that thrive.

This book will definitely be a great Christmas present for your employees and for your business future in 2005.

Just click on the book links (Paperback or sBook) on the top left panel.