by Dr Lisa | cash to cash cycle time, DBR, DBR II, drum buffer rope, Manufacturing a Warp Speed, reducing cash to cash cycle time, S-DBR, SDBR, simplified drum buffer rope, theory of constraints
Reduce Process Time to Reduce Cash-to-Cash Cycle Time To reduce the number of days to make and ship the product from the time the order is received; implement Drum Buffer Rope (DBR)[1] Scheduling which results in a mean reduction of lead-times of 70%[2]. For the...
by Dr Lisa | cash flow, cash to cash cycle time, cash velocity, Dr Lisa Lang, goldratt, increase throughput, maximizing cash flow, maximizing profitability, theory of constraints
Continuing our cash velocity discussion started on March 16, 2007 Cash Velocity Summary There are two cash velocity rules: ● Make sure that the amount and rate of cash flowing in is enough to cover all your business and personal needs ● Be paranoid. Unfortunately,...
by Dr Lisa | cash to cash cycle time, cash velocity, DBR, demand pull, Dr Lisa Lang, drum buffer rope, eli goldratt, eliyahu m goldratt, goldratt, increase throughput, theory of constraints
Continuing our cash velocity discussion started on March 16, 2007 Increasing Throughput — Other Considerations In previous sections we have covered raw materials and how to reduce them. We also need to cover WIP (Work In Process) and finished goods inventory....
by Dr Lisa | cash to cash cycle time, cash velocity, Dr Lisa Lang, increase sales, increase throughput, theory of constraints, throughput per constraint unit
Continuing our cash velocity discussion started on March 16, 2007 Increase Sales cont. Last time we ended our discussion with this question: So how do you increase your throughput without going into cash trouble? The first step is to examine your product mix....
by Dr Lisa | cash to cash cycle time, DBR, drum buffer rope, factoring receivables, mafia offer, maximizing cash flow, maximizing profitability, receivables factoring
Continuing our cash velocity discussion started on March 16, 2007Yesterday we discussed how offering a discount can reduce cash to cash cycle time and today we will discuss an alternative.Another approach, which leads to similar results is receivables factoring....
by Dr Lisa | cash to cash cycle time, cash velocity, Dr Lisa Lang, mafia offer, maximizing cash flow, maximizing profitability, payment discount, payment terms, throughput
Continuing our cash velocity discussion started on March 16, 2007 Now let’s look at the impact on what we discussed yesterday had on our throughput. Let’s say we immediately visit a customer whose complete order was shipped and had just been received by that customer....
