This document introduces Mr. X, the director of an SME company that has been in existence since 1963. It describes some of the challenges the company was facing, including delayed deliveries, cash flow pressure, and delayed vendor payments. It then outlines how the company worked with Yagna to apply Theory of Constraints (TOC) thinking to identify constraints, exploit them by ensuring full kit compliance and visibility, and subordinate all other activities. As a result of these changes, the company saw significant improvements over one year, with project sales increasing 60%, throughput increasing 70%, and product sales increasing 30%. Overall throughput doubled from the agreed baseline.

2. Meet Mr. X
First Generation Entrepreneur
Took over a Company in
existence since 1963
Products and Projects business
Serving clients in India and Globally
Mr. X is the Director of an SME*

3. 1
2
3
4
5
6
Delayed
Deliveries
Start New
order early
Cash Flow
Pressure
Delayed
Vendor Payment
Difficult to
synchronize
full kit
Higher WIP
Life Once Upon A Time

4. INTRODUCING

5. Yagna’s Mantra
WHY?
Any company can
significantly improve
in short period of time
HOW?
Act on leverage points
WHAT?
Bring Focus the TOC way

6. Yagna’s Finding
CAUSE
Current belief &
practices – early
start will lead
to ealy
complication
EFFECT
Lack of visibility
of the relevant
information

7. Toc @ work
Identify
Design department as a constraint
Decide How To
Exploit
Full kit compliance and visible priori
Subordinate
Eliminate bad multitasking
Single priority Across The Company
Full-Kit Before Start of Work
Limited Work In Process

8. Yagna @ work
Controlled
Flow
Planning
Mechanism
Visibility
Review
Mechanism

9. Chaos To Success
Throughput
growth
YoY
1 Year
Sales
Growth
YoY
Full kit
Compliance
Key BO
Product
Sales
Growth YoY
START
By 70% By 60% 90% 30%
SUCCESS

10. Visibility IT system
Performance Measurement
Incentive Link To
Improvement in operations flow
Material and Information flows.
Clear priority mechanism to take action
in time
Well Defined SOP For effective reviews
On-time In Full
Throughput
Clear and unambiguous MIS
Availability of clear data for analysis
IT system and excel enabled dash boards
Reduction in Customer PO to Supplier PO time
Collateral Advantage
Clear Planning mechanism

11. Products Sales Production
Product planning Engine
90%+ availability of products.
30% increase in product
business YoY
Order Acceptance criteria based
upon –
Throughput
Payment terms
Current Load
Annual Business Planning
RM Buffer
Constraint based planning
Significant
reduction in
production lead
times
Picture Abhi Baki Hai...

12. “During this consulting engagement, Project sales increased YoY by
60%, throughput increased by 70% and product sales increased by
30%
Overall throughput doubled from agreed baseline number”
- Mr. X, Director
Happy Mr. X Speaks

13. Deepak Nagar | +91 9822002351 | deepak.nagar@yagnaworld.com
Leading SMEs From Chaos to Success