About this Presentation
This presentation describes a method for constraint identification (questions to be asked about the market, production facility, and the suppliers), defines cash constraint, describes issues with cash constraints, discusses how to manage a cash constraint and provides a case study illustrating the concepts. A cash constraint exists only if there are sufficient orders, excess manufacturing capacity on all equipment, and suppliers are refusing to supply unless paid up-front. Definitions, measures and supporting throughput calculations are provided for the cash-to-cash cycle, throughput, survival time, etc. Issues related to having a cash constraint, common mistakes, measurements, etc. are described and a simple example illustrates supporting concepts and measures.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Cash constraints can severely limit a business's ability to meet immediate expenses and can lead to bankruptcy if not managed effectively.
Reducing the cash-to-cash cycle time, particularly by reducing customer credit period, can significantly improve a company's cash situation.
Even borrowing at high interest rates can be beneficial if it helps to alleviate cash constraints.
Instructor(s)
Ravinder Gilani
Ms Alka Wadhwa
Alka Wadhwa is an experienced consultant and process improvement expert with over 24 years of expertise in the Theory of Constraints (TOC), Lean Six Sigma, and organizational performance optimization. She has successfully led projects in healthcare, financial services, and manufacturing, driving significant improvements such as a 67% boost in hospital operations and a 140% increase in outpatient visits.
Previously, Alka Wadhwa spent 17+ years at GE Global Research Center, where she led initiatives to enhance various GE businesses through advanced technologies, process redesign, and system optimization. Founder of Better Solutions Consulting, LLC, she specializes in using TOC, Six Sigma, and data analytics to streamline operations and build high-performance teams.
Her work has earned her multiple accolades, including the Empire State Award of Excellence in healthcare.
Dr Gary Wadhwa
Dr. Gary Wadhwa is a Board Certified Oral & Maxillofacial Surgeon with extensive experience in the field. He completed his Oral & Maxillofacial Surgery training at Montefiore Hospital, Albert Einstein College of Medicine in Bronx, NY, and has served as an Attending at prestigious institutions like St. Peters Hospitals, Ellis Hospital, and Beth Israel Hospital in NY. With a career spanning over two decades, he was the former CEO and President of a group specialty practice in NY from 1994 to 2015. Dr. Wadhwa holds an MBA from UT at Knoxville, TN, and has undergone additional training in System Dynamics at MIT, Health System Management at Harvard Business School, and Entrepreneurship and healthcare innovations at Columbia Business School. Committed to expanding access to Oral & Maxillofacial Surgery care, he is currently engaged in a meaningful project to provide healthcare services to underserved populations in inner city and rural areas through non-profit Community Health Centers.