About this Presentation
NAT Steel Equipment Private Limited (India), an equipment manufacturing company, created a red curve strategy of financial growth. A company history, in addition to products and customers descriptions is provided. National Steel was an average company until it implemented TOC. With all the conventional rules, National Steel achieved its Viable Vision (VV) in one year. Recall a VV means that your sales today will be equal to your profit in four years. The difference was the perspective of a TOC practitioner. Two goals were set: to deliver on time and to generate a positive cash flow. Rule 1 is to list and prioritize all of the pending orders. Rule 2 is that no more than orders for three machines are on the shop floor at one time (no machine can be started unless 100% raw materials availability). Previously we tried to make twenty machines at a time. Lead time is 3 days now. Rule 3 is to never believe the customer. We developed a process to create honesty in the customer. We had a daily meeting to determine and reinforce priorities. We affixed a white board inside the entrance of the factory with the priority list.
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 company implemented the Theory of Constraints (TOC) and saw significant growth.
The company increased its prices and saw an increase in orders.
The company managed to double its throughput without increasing resources.
Instructor(s)
