About this Presentation
This presentation discusses how to sustain the TOC momentum. The challenge is that of being a first-tier supplier to Ikea and a part of a global supply chain to Renault/Volkswagen while surviving was the short-term goal. Implementing TOC was our choice to survive and thrive. Now that the key employees embraced the TOC logic and live with it how are we, the management, sustaining the momentum? The solution to sustain the momentum is that we were focusing on people and using the right tools to reach our goals: we started to measure company/employee performance the TOC way and gave employees a tool that enabled them to reach ambitious goals. The tool was TOC-based software that helped us to sustain the TOC momentum and introduce POOGI: a prerequisite for a long-term growth. The mentioned tools in the right hands of our TOC users have proved to be the right choice for the above challenge even after the consultants left. We exploited the existing ERP beyond its basic purpose. We have succeeded in integrating the TOC way of working in our ERP system that is now becoming more intelligent and supporting us also with TOC data. The results are: we are focusing on high throughput projects and winning them. We are paying suppliers on time, paying debt on time – cash is not a constraint any more. Ikea's intentions were to eliminate us as a supplier since our due date performance (DDP) was so poor. Our promise to them was that we would become one of their best suppliers materialized earlier than even we thought possible. Suppliers in the caravan industry had already developed an alternative supplier since our DDP was so poor. Now we are getting better throughput projects from them. Our warehouse turned into a ghost house. Other results include a lower working capital employed, increased inventory turns, and sales increased (in one location) by 80% without any additional investments in the new capacities.
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 speaker's company implemented the Theory of Constraints (TOC) to improve efficiency and competitiveness in a market dominated by larger players.
The introduction of a strong and supportive ERP system, along with new measurements based on throughput, operating expense, and inventory, was crucial to sustaining momentum and reaching the company's goals.
Despite being hit by a crisis in 2009, the company was able to decrease inventory levels and increase sales through the implementation of TOC.
Instructor(s)
Agnesa Stemberger
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.