We
are in the business of helping your company to improve
its bottom line through continuous improvement.
We use Theory of Constraints (TOC)
by Dr. Eliyahu Goldratt to overcome problems of excessive
inventory, poor on time delivery performance etc.
What is TOC?
In a nutshell, TOC states that every
system has a constraint, i.e. a limiting factor that
decides the throughput of the system. Therefore, the
only way to get the best from the system (or company)
is to take cognisance of this fact and schedule the
manufacturing (or distribution) accordingly.
Murphy’s Law states that if anything
has to go wrong, it will at the worst possible time.
In other words, disruptions in planned business activities
are bound to occur. Therefore, we must accept the fact
that no manufacturing/distribution activity will progress
exactly as planned. There will be some disruptions such
as absenteeism, breakdowns, quality problems, unreliable
supply from vendors etc. no matter how best or precisely
we plan.
TOC recognises that Murphy is an inevitable
part of our life. The best way to protect our commitments
to clients from the ill effects of Murphy is to use
protective buffers. Buffers also offer a mechanism to
identify areas in our company where we need to improve,
in order to improve the performance of the company as
a whole.
For manufacturing companies, the application
of TOC is called as the Drum-Buffer-Rope (DBR) technique.
TOC application technique in project-oriented companies
is known as CCPM (Critical Chain Project Management).
In case of distribution, the application is to set up
a system where the procurement and supply are synchronised
to the market demand using protective buffers.
TOC also has applications in the areas
of Finance, Marketing, Sales and achieving buy in, Managing
People and for deciding a Strategy for the company.
Some of the well-known companies to
have benefited by applications of TOC are Ford, Lucent
Technologies and Boeing.
The Goal, The Race, It’s Not
Luck, Critical Chain are some of the well-known books
Dr. Goldratt has written on TOC. For more details and
success stories of TOC applications, please visit www.eligoldratt.com.
What do we do?
We undertake a preliminary study of
the company that is facing the problems of excessive
inventory, excessively long manufacturing lead times
or poor on time delivery. This involves talking to key
personnel from planning, manufacturing, procurement,
marketing, finance and the top management. A plant visit
is also made.
The idea is to understand how the material
flows through the company, what are the policies that
govern the decision-making process and what are the
major pain areas. We also study the formal and informal
measurements that are used to monitor the performance
of the company as well as the individuals working there.
Based on this study, we submit a proposal
for implementing the TOC based solutions in the company.
The entire exercise up to the submission
of the proposal involves no obligation on the part of
the prospect or us. If the proposal proves to be mutually
acceptable, we enter in to a contract for actual implementation
of TOC applications, as outlined in the proposal. Usually,
a major part of our remuneration is linked to bottom
line results.
The Offerings –
1. DBR technique for manufacturing
based organisations
2. CCPM technique for project oriented organisations
3. Distribution Management for distributors in a supply
chain.
4. Thinking Processes application to logically solve
problems and find solutions
We also offer TOC based software for
distribution and manufacturing companies.
|
