TOC is holistic, meaning that there is a complete set of tools available to support “A Process of Ongoing Improvement”:
· For operations, there is Drum-Buffer-Rope scheduling
· For projects, there is Critical Chain Project Management
· For finance and measures, there is Throughput Accounting
· For marketing, there is the compelling, un-refusable “Mafia Offer”
· For sales, there is the Buy-In Process
· For people, there are Management Skills
· For distribution and supply chain, there is Replenishment
· For anything else, there are the Thinking Processes.
Drum-Buffer-Rope (DBR) scheduling embraces the concept that there is one constraint for the entire organization. If the constraint is internal, the company cannot sell all that is demanded from the company. Due-date performance is probably less than 99%, and lead-times may be longer than desired. On the other hand if the constraint is external, the company does not have enough sales to fully utilize its available resources. More sales are desired. Implementing DBR brings a company to 99+% due-date performance (DDP) and maintains that level even with rapid sales growth. It can be implemented in a very short time. Typically, 50% capacity can be freed up to sell with little or no investment or added expense.
…to be continued.
Here’s to maximizing YOUR profits!
Dr Lisa Lang