TOCICO

“Boosting sales, productivity and profits by 50% in less than 6 weeks and ongoing” Introducing Throughput Compression, Smart Pricing Decision Support Tool and Case Study Update for 2020. In this modified* presentation we will learn how a small Australian family business increased sales by 50%, increased its sales quote conversion rate from 30% to over 95%, and reversed declining profit margins in the space of just 6 weeks. This presentation provides a deep look into how the company applied Throughput Accounting methods to achieve these results with an update for 2020. We will introduce the technique of “Throughput Compression” based on backward and forward levelling introduced by Dr Eli Goldratt in his book The Haystack Syndrome. Whilst Dr Goldratt applied this process to internally constrained operations, this case study shows how it can be applied to “market” constrained operations to concurrently: a) Turn a loss making period into a profitable one, b) Expose and condense available capacity for the sales team to exploit using a decision support tool for Throughput Pricing, and c) Increase Throughput Velocity (the speed of making money) for the whole business. d) Grow the top line from $10.8m to $17.8m (+60%). Various pricing scenarios with the Pricing Decision Support Tool to win jobs will be demonstrated along with how the sales and production teams work together visualising current and future capacity and their approach to best maximise Throughput. Video length: 1:01:31. PDF: 106 slides.