Theory of Constraints for A Rapid and Effective Performance Diagnosis
A 3 Dimensions Assessment
Focused on Key Systemic Variables
Sales Performance, Demand Variability, and unexploited market opportunities.
Supply Variability, Inventory Adequacy, Capacity Utilization, blockages in operational Flow
Operating & Financial Performance, performance measurement and decision-making processes
Supply & Information flow
To be effective, a Business Diagnosis must focus on the key variables impacting the global system's performance.
How well are we managing the Flow of operations?
Are we well protected against the variability (internal and external) hitting the system?
How much effectively are we using Inventory to protect the Flow? Are processes too tight or too decoupled?
Is our Supply Chain agile enough to manage VUCA?
Are we exploiting the entire "Throughput Potential" of the system?
How well are we using our capacity?
Are there unexploited market opportunities?
Do we have the right measurement do make the right decisions?
Applying Theory of Constraints to Business Diagnosis
The application of principles and methodology from Theory of Constraints allows for an effective, focused and rapid intervention to identify the core problems.
Often, the first Constraints limiting business performance can be found in the managerial rules and policies.
Performance Management systems leading to behaviors in conflict with the Goal
Tendency to try to improve everything instead of focusing on the real needs
ASAP approach causing uncontrolled WIP and multitasking disrupting flow
Focus on local performance rather than ot the Global Optimum
Theory of Constraints helps to set the focus on the right variables and priorities, addressing the efforts on the most valuable improvement actions.
Our business diagnosis is focused on the key variables impacting on the system, with the Client in the cockpit with us.