Advisory Services
TOC solutions are inherently simple, yet implementing them is often not easy. In fact, they are powerful due largely to the fact that they challenge basic assumptions, measurements and policies that may have underpinned the organizations for years.
What to Expect
Each TOC Implementation Project is specifically tailored to improve financial performance of the organization based upon it's ambitions and needs. This is usually achieved by increasing the top line or by reducing working capital requirements such as inventory and bills receivable (never by cutting costs). We achieve breakthrough results by addressing one or more critical operational issue such as:
TOC Implementation Projects may involve significant changes to the scheduling and control of production, procurement, sales order booking and distribution mechanisms. They also typically involve aligning key measurements from the top down.
If you and your team are comfortable with the existing methods and do not feel the need to make fundamental changes, it may not be a good time to undertake a TOC Implementation Project.
- Ensuring on-time customer delivery
- Eliminating stock-outs
- Controlling inventory
- Crashing cycle times
- Aggressive collection followup
- Expanding plant capacity
- Project delivery/scope/budget acceleration
- Premium pricing for defined segments
- Expanding plant capacity while avoiding major capital investments
- Growing sales volume
TOC Implementation Projects may involve significant changes to the scheduling and control of production, procurement, sales order booking and distribution mechanisms. They also typically involve aligning key measurements from the top down.
If you and your team are comfortable with the existing methods and do not feel the need to make fundamental changes, it may not be a good time to undertake a TOC Implementation Project.
TOCI Methodology
We deploy the Theory of Constraints for rapid growth and bottom-line improvement. To achieve this, we align competing functions and synchronize their efforts to the bottleneck area. All core team members must:
- Know the organization’s Goal and understand how “scoring” is done
- Aligning KPAs to a common Goal
- Be aware of the Constraint which limits achievement of the Goal
- Actively manage this constraint in coordination with all functions
- “Check the score” on a frequent basis, including a weekly team meeting to take corrective actions
Our Engagement Model
Each TOC Implementation Project is conducted over a nine-to-twelve month period depending on it's complexity. Most of the heavy lifting occurs during the first six months while the remainder is devoted to fine-tuning and hand-over.