SlideShare a Scribd company logo
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*
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
INTRODUCING
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
Yagna’s Finding
CAUSE
Current belief &
practices – early
start will lead
to ealy
complication
EFFECT
Lack of visibility
of the relevant
information
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
Yagna @ work
Controlled
Flow
Planning
Mechanism
Visibility
Review
Mechanism
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
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
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...
“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
Deepak Nagar | +91 9822002351 | deepak.nagar@yagnaworld.com
Leading SMEs From Chaos to Success

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Yagna case study paint equipment

  • 1.
  • 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
  • 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
  • 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