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!
Bob Sproull
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