Organizations are Complex Systems, whose performance are determined by their Constraints
We Focus Improvement with Theory of Constraints
Theory of Constraints: The Foundations of Our Solutions
Theory of Constraints - abbreviated as TOC - is a Scientific Management approach developed by Dr. E. Goldratt, for improving performance of each Organisation by focusing the management attention on the limiting factors. Starting from a simple and coherent algorithm to exploit the constraints, TOC evolved from Manufacturing to many other functional areas:
Supply Chain Planning and Execution, synchronizing flow, reducing lead times and working capital, improving cash-to-cash cycle time, with demand-driven approaches. Hence the Demand Driven MRP (DDMRP) has derived the logic at the foundations of its algorithms.
Inventory & Distribution, adopting pull logic to replenish the network, improving availability and service level to unleash the full potential of the Organisation.
Project Management, delivering superior results on Project and Project Portfolio Management, achieving on time and on budget performance without compromising the initial Statement of Work.
Strategy, Decision Making and Controlling, applying a paradigm shift to Business Architecture Design and Organisational Performance Measurement
Sales, by offering solutions to differentiate the offering and create your own Blue Ocean.
Organizations are Systems
Systems are limited by constraints
Constraints as leverage points
They Say About Theory of Constraints
Luca Zigiotti - CFO
Theory of Constraints has simply changed my life, both personally and professionally, giving me the right key to understand the corporate world [...] Because TOC cleanses our minds and focuses people on a single and core question: why aren't we making as much money as we could?
And if we realize that TOC demonstrates that what we call "faults" are very often just illogical behaviors that are caused by wrong measures, then the sense of liberation is truly full.
Every time I've applied TOC principles in my professional life, the results have been extraordinary.
Average performance documented by a University research titled "Analysis and Discussion of Successful TOC Applications" conducted by S.J. Balderstone and V. Mabin, surveying 81 companies - from large corporations to local SMEs.
Thanks to improvements in Customer Service Levels enabled by shorter lead times
Through the controlled flow of operations to prevent overproduction
Lead Times Reduction
Thanks to synchronization of flow through the constraints, allowing to reduce queue and wait times
Combined Financial Improvement
Average combination of increase in revenues, throughput, cash and saving on working capital
Solutions to Create the Stream
Solutions for the leadership to implement strategy and tactics and to improve the decisional processes to make an impact on performance
Solutions for managers to implement flow, for any process, be it manufacturing planning or execution, supply chain and distribution or back office processes to be optimized
We apply a rich set of solutions to implement a Flow-oriented culture and processes: from Strategy & Tactics to Supply Chain & Operations, from Planning and Performance Management to Project Management...
Solutions for project environments: to improve the delivery rates of single projects or complex project portfolio in knowledge intensive environments, ICT projects or Engineering-to-Order complex products
Solutions for the CFO to link financial planning, budgeting, decisions and business simulation to operations planning under the perspective of Throughput