In my last posting I gave you several examples of what a mafia offer might look like, but it’s important to understand that an expert in TOC can apply the Theory of Constraints to virtually any environment. There are essentially eight different TOC applications that you can use to formulate your mafia offer. For example, if you recognize that your potential client has a problem with shop floor synchronization or scheduling, then you could apply the TOC technique known as Drum Buffer Rope (DBR). DBR by itself can reduce lead times, inventories, overtime, and schedule adherence misses all with the same level of manpower you have now.
As I said, there are other TOC applications you can use to formulate your mafia offer as follows:
1. Throughput Accounting (TA) – Traditional Cost Accounting causes managers to make incorrect decisions that typically result in higher levels of inventory (Raw Material, WIP and Finished Goods). By demonstrating this to a potential client, you can convince them that TA will help them reduce these inventories. In fact you should expect raw material inventories that are 40-60% lower, WIP inventories reduced by 50-75% and finished goods inventories reduced by up to 50%!
2. Critical Chain Project Management (CCPM) - CCPM enables clients to create and execute projects in 25-40% less time than the traditional Critical Path Management (CPM). Clients will be able to meet promised due dates must faster than they ever dreamed possible with typically greater than 90% on time completions.
3. Dynamic Replenishment Model – This TOC application will guarantee 40-50% or less inventory with next to zero stock-outs. By simply increasing the rate of parts replenishment based upon usage, you achieve close to 100% availability.
4. Strategic Planning – Using the TOC Thinking Processes, clients can significantly shorten their strategic planning times with much more effective plans developed. One such tool, the Intermediate Objectives Map (also known as the Goal Tree) is a simple to learn and apply TOC tool which always delivers fast, reliable strategic plans.
5. TOC’s Five Focusing Steps – Using the five basic steps of TOC you are virtually guaranteed to significantly improve the throughput of your processes to not only meet current customer requirements, but to also grow your market share.
These are but some of the TOC applications you can use to generate mafia offers that will skyrocket your sales. In my next posting, we’ll continue to discuss mafia offers, so until then, happy 4th of July. Stay safe!