About this Presentation
This presentation is about how TOC enabled us to succeed in acquiring and integrating an Ikea first-tier supplier’s operations (in spite of difficult economic times). The company was heading fast towards a cliff... due date performance (DDP) was appalling, working capital (WC) sky high, warehouses filled with all the wrong materials and components, customers were looking for alternative suppliers (to us), batch sizes were large, cash flow poor, in-fighting and turf protection, nobody (within the company) knew the company's overall performance... The results included: DDP increased; customer satisfaction increased (we managed to retain the biggest customer, Ikea); existing customers awarded us with more business (also Ikea); hidden capacities were revealed: availability (of machine capacity, warehouse storage and manpower) increased; internal lead times decreased; batch sizes decreased, set-ups increased (even though everyone thought we were mad and wasting capacity); inventory decreased; WC was no longer a problem, the warehouse was under control; precious cash flow was freed (where none was available anywhere!); and ROI increased. We developed and implemented a four-stage project acquisition approach using critical chain project management (CCPM) principles.
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 acquisition of Unitplast by Tomplast was strategic for growth, elimination of competition, and acquisition of new technologies and market shares.
The implementation of Theory of Constraints (TOC) in business operations led to significant improvements in due date performance and working capital management.
Companies should consider various factors such as working capital employed, current performance, and potential for improvement before making acquisitions.
Instructor(s)
