Theory of Constraints Consulting since 1988
Online Marketing (B2B, B2C) since 1999
"Focusing on everything is synonymous with
focusing on nothing."
Dr. Eli Goldratt,
author of "The Goal."
Theory of Constraints Education, Implementation, Consulting & Coaching
Since 1988, Theory of Constraints has applied Focus and Leverage to generate order-of-magnitude performance improvements in businesses of all kinds.
Promoting Products and Services to SME Businesses
Many SME businesses are unaware of advanced Products, Services and Technologies capable of improving Productivity and Profits. We provide the connections.
Promoting Products and Services to Consumers
We use a wide range of Advertising platforms and Social Media platforms to bring valuable Products & Services to the attention of Consumers.
5 Steps of Fast, Direct Massive Results
Constraints limit the performance of any real system, relative to the Goal of the system. For example, “to make more money now and in the future” is a common Goal for a for-profit business. It’s why we are usually hired.
The majority of an organization’s resources are not Constraints (although it may feel otherwise, for those inside the system!).
So the shortcut (speed of results, with the least effort) and leverage (size of results) emerges from focusing improvement efforts on a very few resources — the system’s Constraints.
1. Identify the Constraint(s). There are formal and informal ways to do this.
2. Decide how to Exploit (squeeze the most out of) the Constraint(s).
3. Subordinate all non-Constraints in support of (1) and (2) — do NOT be driven by Local Optima! Usually policies and procedures, rules and measurements — aka “how we do things here” — limit performance. Not any physical limitation.
Never allow a non-constraint to limit the performance of a constraint!
4. Elevate a Constraint when “Exploit” and “Subordinate” are well implemented, and you still want more out of the system.
5. If in Steps 1 – 4 a Constraint is strengthened to the point that it is no longer a Constraint — go back to Step 1. DO NOT ALLOW INERTIA TO BECOME THE CONSTRAINT!
14 Tactics for Massive Profit Growth
1. Squeeze 20% – 40% more output from the same resources, and sell it at full price (or better). The only incremental cost is material costs — so the profit impact is large.
2. Reduce Operating Expenses by eliminating chaos from the plant. Typically reduce or eliminate expediting and overtime expenses.
3. Reduce Inventories by 25% to 50%. This frees-up cash to fund profitable growth; but it also supports performance improvement.
4. Use Throughput Accounting to understand the true impact of decisions on Net Profit. Conventional Cost Accounting does not tell you this! (Most Managers do not realize this.)
5. Use TOC 5 Focusing Steps and Throughput Accounting to identify process improvements that contradict conventional thinking but have a massive profit impact. Awareness of TOC & Throughput Accounting provides a game-changing Cause-Effect perspective.
6. Use Throughput Accounting to understand which products, Customers & Markets genuinely contribute the most towards Net Profit. This is usually stunning, and often a 180-degree change in perspective. It explains a lot!
7. Use Throughput Accounting to understand how you are using capacity to generate Profit. Often this illustrates that most capacity is being directed to low-profit business.
8. Use Throughput Accounting to create a pricing strategy that guarantees an excellent Return on Sales (ROS) in good times and in bad. Conventional pricing based on costs and margins limits profits and creates vulnerabilities.
9. Elevate the perceived value of your products by implementing best-in-class On-Time Delivery (service levels) and Lead Times. Our implementations use 99% on-time as the low-end; and Lead Times that are unmatched.
10. Elevate the perceived value of your Offerings, and price products higher than competitors while simultaneously increasing demand, using the “Mafia Offer” concept. Customers don’t care about your costs, but about the perceived value to them. It can be elevated!
11. Immunize the company from downturns with an aligned strategy, tactics, and Throughput Accounting. A counter-intuitive strategy positions you to be largely immune to market downturns in any sector.
12. Position the company to take business from any competitor, at any time, via a Decisive Competitive Edge (much more substantial than just a “Competitive Edge.”) When the market experiences a downturn, you simply take business from hapless competitors!
13. Position the company to manage aggressive sales growth with no deterioration in Lead Times or On-Time Delivery. This is non-trivial! Conventional methods and systems do not deliver this.
14. Convert the potential of Lean and Six Sigma technologies into faster, bigger Profit growth. Deploying Lean or Six Sigma in support of Constraints, 10 X’s the impact.