About this Presentation
This presentation shows how to evaluate the impact of critical management decisions based on an integrated view of S&OP processes that behave within reasonable optimistic and conservative measurements of T, I and OE. The approach proposed by Throughput Economics will help you to understand that in order to manage successfully in a VUCA world you need to allow the S&OP team to build and communicate a common sense description of the current situation and the future impact of the critical management decisions, based on optimistic and conservative and ranges of Delta Throughput, Investment, Operational Expenses, applied to the real current capacity profiles of critical constrained resources – CCR. Validate the need to preserve the protective capacity to ensure the delivery of the orders/projects, especially in the CCR. Evaluate the current portfolio ensuring that to maintain profitable sustainability, some SKUs should be cancelled, as a mean to obtain additional capacity.
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.
Throughput economics is a valuable approach to decision making in business, focusing on whether a decision will increase throughput more than operational expenses.
Companies should promote a culture where employees propose ideas that increase throughput more than operational expenses.
When evaluating a decision, consider the impact on sales, operational expenses, and investments.
Instructor(s)
Alejandro Fernandez
Alejandro Fernandez has been working with more than 100 companies since 1993 in Processes of Ongoing Improvement, based on implementing TOC solutions for: Operations, Finance and Measurements, Projects, Supply Chain, Marketing & Sales Management, under the Strategy and Tactics approach of Harmony & Exepron & Focuss software, based on applying the TOC Thinking Processes to build and communicate common sense and generate consensus throughout the management team.