About this Presentation
This presentation describes the implementation of theory of constraints in a ladies fashion handbag manufacturer in China. Some raw materials come from Italy. Characteristics are: the company seldom has reorders for the same SKU; customers order twice or four times per year (seasonal forecast); flexibility in delivery lead time (20-45 days); delivery lead time (excluding shipment) averages 45 days from date of all information confirmed, material received and validated, etc.; about 20% of orders are required within 30 days; average production lead time is 45 days; high variability in daily production capacity; and WIP is very high. Undesirable effects (UDEs) include: material is in shortage when needed; production priorities change frequently; too much expediting exists; and often resources are not available when needed. The implementation objective was to achieve 0 throughput dollar days (TDD) in 120 days. Current TDD is over 100 million. After implementation lead time was 12 days compared to 45; inventory level was 500 kits compared to 3000 and due date performance was 100% compared to 60%.
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.
The implementation of Theory of Constraints (TOC) led to significant improvements in the production process, inventory reduction, lead time reduction, and profit increase.
Change management and top management commitment were crucial for the successful implementation of TOC.
The project led to a shift in company culture, with increased teamwork and collaboration, and a focus on continuous improvement.
Instructor(s)
Jennifer Eckman
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.