TOC FAQ

In a manufacturing setup, Avenir can help in dramatically improve business performance by releasing capacity and help increasing sales without significant increase in the Fixed cost or Capital expenses. Within the manufacturing set-up, our intervention helps in dramatically cuting down the plantand channel partner inventories, reduce lead time of operations and improve Due Date performance way over 95%.

Generally in production environments, it is observed that too many orders are worked on in the shop-floors at a time. Significant capacity can be released by chocking the release and by ensuring that capacities are leveraged on the orders that are immediately needed in the market.

Specifically in process industries, this may not be case if the number of SKU’s passing through a line is limited. However, generally it is observed that the OEE (Overall Equipment Effectiveness) of the critically constrained resources are low because of batch considerations. In those cases the capacity can be released by altering batch sizes in conjunction with the client’s customers.

Yes, we do help Services Industries to significantly improve their business performance by focusing on flow.

Software (IT) Industry: Avenir helps dramatically reduce the project time frame. Through this the IT companies can dramatically increase their projects without adding resources and thus increase profits significantly.

Hospitals: Avenir helps hospitals to achieve their twin objective of maximizing health and profits by managing the flow of patients.

BPOs: Avenir in partnership with Trinity Horne helps companies dramatically improve efficiency in the front line.

Can Avenir help me increase my sales?

Conventional sales methods are not effective enough to capitalize on a competitive edge that stems from anything other than the product itself. Avenir helps create a sustainable decisive competitive edge by solving the pain of the client’s customer. Avenir then helps to leverage this Competitive Edge by creating an un-refusable (win-win) offering to the market enabling product premiums or increase in sales.

Avenir does not expect investments to come in at an initial stage. Investments may be required at a later stage when the sales volume increases dramatically and even after capacity release, the current capacity is not sufficient to satisfy the generated demand (by rolling the competitive edge offers).Typically the marginal investment is a fraction of the returns through the increased sales.

Avenir attempts to significantly enhance the delivery capability of its clients through application of TOC. We do expect some significant change in the existing processes. However, all the changes are agreed with your management before the engagement is started.

Avenir focuses on increasing sales and production with same manpower and operational costs. As per TOC principles, the primary focus of an organisation is to maximize its Goal.Focus on Operational Costs is a manifestation of the inabilityof organisations to increase profits by generating additional revenue.

Most Production solutions do not require special software for TOC implementation. For project solutions, Avenir has invested in developing a robust software that facilitates TOC Critical Chain planning and execution.

Only a few companies in the world achieve exponential profit growth through product based advantages. Price or even technology is not a barrier to competition in many industries. Avenir has demonstrated the only sustainable manner to gain a competitive edge over competition is by changing the operating paradigms of the business. Avenir has partnered its clients to achieve significant operational and business performance improvements in varied industries by leveraging the power of TOC.

TOC is aligned with any initiative that intends to leverage the potential of the operational or market constraint. Examples of these are Six Sigma and Lean initiatives so long as they are focused to improve flow and improve capacity. However, TOC considers as a waste of precious management time and attention those initiatives that try to improve local, non-constraint area performance as they add insignificantly to the organization’s bottom-line.

The TOC Solution for operations can be underway in less than a week. First results are apparent in a month’s time and around 95% On Time in Full Delivery or availability is achieved most of the time within three months. Of course, to achieve such a magnitude of order improvement in such a short time, commitment and implementation discipline are critical.