by Dr Lisa | POOGI Series, Theory of Constraints Finance, Accounting, and Cash Flow
The core idea in the Theory of Constraints (TOC) is that every real system, such as a for-profit business, must have at least one constraint. If it were not true, then the system would produce an infinite amount of net profit. Because a constraint is a factor that...
by Dr Lisa | POOGI Series
“Cost Accounting: Public Enemy #1 of Productivity” Way back in 1983, prior to writing his popular business novel “The Goal”, Dr. Eliyahu M Goldratt gave a speech by this controversial and confrontational title at a conference of Management Accountants. However, it was...
by Dr Lisa | POOGI Series
Normally, Lean and Six Sigma tools provide additional benefits very quickly. For example, it is common that the constraint resource could benefit from set-up reduction. Focusing Lean tools—which cost little to implement—results in additional capacity where it is...
by Dr Lisa | POOGI Series, Theory of Constraints Finance, Accounting, and Cash Flow, Theory of Constraints in Operations
Most companies don’t have processes in place to sell twice what they are selling now, so it is necessary to develop a compelling, un-refusable “Mafia Offer”. A Mafia Offer is an offer so good that your customer can’t refuse it and your competition can’t or won’t offer...
by Dr Lisa | POOGI Series, Theory of Constraints in Operations
TOC comprises a complete set of tools to support “A Process of Ongoing Improvement” or POOGI. Her are some of those tools: · For operations, there is Drum-Buffer-Rope scheduling · For projects, there is Critical Chain Project Management · For finance and measures,...
