The document discusses common problems faced by SMEs such as low capacity, poor profits and cash flow, delayed customer deliveries, long lead times, material shortages, and high inventory. It presents a vicious cycle diagram to illustrate the interconnected causes and effects. The document then evaluates how the Theory of Constraints (TOC) approach can help convert untapped capacity into cash flow in a short period of time without additional investment by focusing on constraints. Case studies are presented showing how YAGNA has helped various clients significantly improve key metrics like throughput, inventory turns, lead times, and on-time delivery performance within months.

2. Is it possible for one initiative to increase
Throughput(Sales), improve Delivery
Performance and reduce Inventory &
wastages in a short period of time without
any increase in Investment and Operating
Expenses?
Question!

5. ▪ Current capacity is not enough to fulfil the
demand
▪ Profits and Profitability are not growing
▪ Cash Flow is poor
▪ Customer deliveries are delayed
▪ Long lead time taken for customer orders
▪ Material shortages affecting capacity utilisation
▪ High Inventory
▪ Frequent change in production priorities
Do you face any of these problems?

6. Your Current Reality / Vicious Cycle ?

7. Cash Flow
Pressure
Supplier
Payments are
delayed
‘Relevant’
Material is
not available
Shortage and
Surplus
Inventory
Money is
stuck in
Inventory
and
Receivables
Cause and Effect forming a Vicious Cycle

8. SME Entrepreneur’s Dilemma
A: Do well now
as well as in
future
C: Build for
Future
B: Protect the
current status
D’: Focus on new
initiatives
D: Focus on day to
day fire-fighting
In order to have A, we
must have B
In order to have
B, we must
have D
In order to have
C, we must
have D’In order to have A, we
must have C
Objective
Need
Need
Want
Want

9. Evaluate the YAGNA Way
WHY?
Any company can
significantly improve
in short period of
time
HOW?
Focus on leverage point /
Constraint
WHAT?
Convert untapped capacity
into cash flow

10. An ideal solution would be
A: Do well
now as well
as in future
C: Build for
Future
B: Protect the
current status
In order to have A, we must
have B
In order to have A, we must
have C
Objective
Need
Need
• The current
investment and
employees deliver
far more than earlier
• The cost of the new
initiatives is derived
from additional
income
• The solutions
implemented are
stable.
• A Decisive
Competitive Edge is
created which
ensures future
revenues

11. Theory of Constraints (TOC) based Approach
to covert untapped Capacity into Cash Flow

12. Leveraging the TOC Body of Knowledge
1975 1985 1990 1995 2000 2005 2010
Production, Throughput Accounting
– OPT, The Goal, The Race, The Haystack Syndrome
The Thinking Processes
– Jonah Program
TOCEvolutionoverlast35years
Distribution, Marketing, Sales, Management Skills
– It’s Not Luck
Project Management
– Critical Chain
The TOC Holistic Approach
– 8 Video Sessions
TOC & Technology
– Necessary but not Sufficient
TOC & Business Strategy
- Viable Vision / S&T Trees
TOC in Retail
- Isn’t it Obvious

13. Over 7 Million Copies Sold - The Goal by Dr.
Goldratt!
• Discover why your efficiency improvements are
causing those late deliveries
• Learn how to dramatically improve production
capacity without increasing operating expenses.
• Discover a powerful 5 step process for continuous
improvement
THE GOAL

14. Identified
poorly
addressed
significant need
of the market
Build capability
to deliver to the
significant need
better than the
competition
Capitalize on
the unique
capability to
generate higher
throughput.
People – Involvement through
Measures
People – Involvement through
Measures
ITSolutions
ITSolutions
Sustain the
increased flow by
managing capacity
enhancement
smoothly.
1 2
4
3
Each organisation is a puzzle with
a few identifiable pieces which can
be determined to start finding the
solution

15. YAGNA – Client Engagement Model
Awareness Assessment Adoption

16. YAGNA founding team
Aniruddha Joshi - COO
He pays attention to
details
Deepak Nagar– CKO
He Googles …
Aysuh Agarwal - CTO
He weaves magic with
software …
Sachin Shete - CSO
He sells …
LinkedIn Profile LinkedIn Profile LinkedIn Profile LinkedIn Profile

17. Resultants Associates
IMRAN SHAIKH UTTAM JADHAV PRINCY BHATNAGAR
SHIRISH BAGEWADI MAYANK PINCHA RAJESH TRIVEDI

18. CA Aniruddha Joshi Profile
▪ Co-Founder of Yagna Entrepreneur Success Services LLP, a consulting
and implementation firm with more than 5 decades of cumulative
TOC Consulting experience. YAGNA is dedicated to partnering with
SME entrepreneurs and working for their rapid success. The goal is to
make a positive impact on the Indian economy by facilitating many
SMEs to take their rightful place on the global stage by effective and
efficient use of existing investments and resources.
▪ Aniruddha has managed and worked on diverse projects in Finance,
IT consulting and Business Transformation with an overall work
experience of 20+ years. Since 2011, he has been working with various
organizations to bring about rapid and sustainable improvement by
deploying Theory of Constraints principles, processes and
applications.
▪ Working Experience - Cummins, Tech Mahindra, Satyam Computer
Services, Infosys, Avenir Management Consulting
▪ Consulted with
▪ Global and Indian MNCs – British Telecom, Unilever, MTN, Godrej
& Boyce, Kirloskar Brothers, Wipro Enterprises, Al-Rostamani
Group Dubai, Batelco Bahrain
▪ India centric companies - Bharat Bijlee
▪ SMEs- Bullows, Nanomag, Prime Industries and the list
continues.
▪ Certifications- TOC Application Expert in Supply Chain and
Operations, Project Management, Thinking Processes, (by Theory of
Constraints International Certification Organisation), Demand Driven
Planning Professional – CDDP (by Demand Driven Institute)

19. ▪ Co-Founder, Yagna Entrepreneur Success Services LLP
▪ Expertise: Operations and Supply chain Management
▪ Implementing TOC since 2011 at several organizations
▪ MNCs – Forbes & Co. Ltd, Ashok Piramal Group, Godrej Appliances,
Godrej Prima, Aegon Life Insurance, Wipro Lighting
▪ SMEs – Kohli Industries, Losma India, Ramdevs Motors, Mitsuchem
▪ MBA in Business Leadership, B-Tech in Electronics &
Communication
▪ TOCICO Certified – Supply Chain and Operations, Project
Management
▪ Works out of Mumbai, India
Ayush Agarwal

20. ▪ Co-Founder, Yagna Entrepreneur Success Services LLP.
▪ Visiting Professor – IIM, Indore
▪ Endorsed Instructor - DDPP - Demand Driven Institute
▪ 32 Years Industry Experience
▪ Implemented DDMRP using Excel
▪ Facilitated TOC adoption since 2009 at wide variety of
environments (Godrej & Boyce, Ashok Piramal Group, Kirloskar
Brothers, Wipro Lighting, Kohli Industries, Bullows Paint
Equipment, SMI Coated Products, Ramdevs Pumps and Motors,
Mitsu Chem Plast)
▪ PGDM (IIM, Bangalore), BE – Mechanical (MNIT, Jaipur)
▪ TOCICO Certified – Supply Chain and Operations, Project
Management, Thinking Processes
▪ Works out of Pune, India.
Deepak Nagar

21. ▪ Co-Founder, Yagna Entrepreneur Success Services
LLP.
▪ A management Postgraduate in Sales & Marketing
▪ TOC practitioner with more than 18 years of
experience in varied fields like Automotive
Accessories, OEM Business, Aftermarket and TOC
consulting with exposure to Pan India market.
▪ He is driven by a strong desire to pursue a
challenging career in Theory of Constraints in
Industrial & Manufacturing Systems. He constantly
strives to use TOC thinking Process tools to bring in
faster results to improve bottom line results.
▪ Sachin has decided to play an active role in
propagating word of TOC to change and influence
the way people think to generate and implement
better options of Business Growth with special
focus on sales and business development.
Sachin Shete – Founder Resultant.

22. ▪ Imran has an Industry experience of more than 20 years. He worked at
various leadership roles in Industries. Strategy planning, Finance,
Collaboration, JV,
Operations are his stronghold.
▪ He is a strong supporter of Theory of Constraints & other best practices.
Before venturing into consulting he transformed his organisation as
COO into a benchmark business model. Developed business acquiring
many customers in India & Globally & built high performance teams.
▪ Imran is a Mechanical Engineer, Certified Lean Six Sigma Black Belt,
Certified Theory of Constraints [TOC] Practitioner, QMS Auditor & a
Senior Member of American Society for Quality. He has been sharing &
gaining knowledge & experiences through various forums at ACMA,
IIMM, CII & others.
▪ Imran, believes that every situation can be challenged. Win-Win
attitude, Speed & Quality of decision is key. Believes in designing &
working on Process measures to achieve Result measures.
Imran Sheikh

23. ▪ Uttam has over 12 years hands on experience in formulating Corporate strategy,
Annual Business Plan, Improve operational efficiency, Profitability & Revenue
Enhancement. He is Inherently wired for strategic & tactical thinking to improve
bottom line results.
▪ 12 years hands on experience in formulating Corporate strategy, Annual Business
Plan, Improve operational efficiency, Profitability & Revenue Enhancement. He is
Inherently wired for strategic & tactical thinking to improve bottom line results. He
has been involved in consulting assignment with wide range of Indian clients
including JK Files India Ltd, Godrej Group, Kirloskar Group, Bureau veritas India Pvt
Ltd, Balmer Lawrie, HDFC Life etc. Uttam is certified in TOC Fundamentals, TOC
Supply Chain & Logistics and TOC Project Management and TOC Thinking Process.
He is an alumnus of IIM Calcutta.n involved in consulting assignment with wide
range of Indian clients including JK Files India Ltd, Godrej Group, Kirloskar Group,
Bureau veritas India Pvt Ltd, Balmer Lawrie, HDFC Life etc. Uttam is certified in TOC
Fundamentals, TOC Supply Chain & Logistics and TOC Project Management and
TOC Thinking Process. He is an alumnus of IIM Calcutta.
Uttam Jadhav

24. Our Clients
RAMDEVS MOTORS

25. Clients consulted by YAGNA Team in past

26. Partners

27. Case
Study

28. Meet Mr. X
A 3rd Generation Entrepreneur
45-year-old SME
Capital Equipment OEM
Serving clients in India and Globally
Mr. X is the owner of an SME*

29. World class Products
Rotogravure Printing
Machines
With Solvent and Solvent-
Less Lamination
Machines
Slitting
Machines
Mostly custom built
Machines
Standard Machines
with minor
customisations
Standard Machines

30. 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

31. CAUSE
Current belief &
practices – early
start will lead
to early
completion
EFFECT
Lack of visibility
of the relevant
information
YAGNA’s Findings

32. Identify
Assembly Bays
Decide How To
Exploit
Zero Wait On Assembly Bays
Subordinate
Eliminate bad multitasking
Single priority Across The Company
Full-Kit Before Start of Work
Limited Work In Process
TOC @ work

33. Controlled
Flow
Planning
Mechanism
Visibility
Review
Mechanism
YAGNA @ work

34. In 90 Days
Assembly
Cycle
Time
In 1 Year
Flow
Through
System
Working
Capital
Delays In
Delivery
START
By 40%
By 60% By 60% By 20% 4 Months
By 40% By 30%
From 6
To 3 months
SUCCESS
CHAOS TO SUCCESS

35. Internal External
Standardization Vendors
Performance Measurement
Incentive Link To
Customers
Rationalized Machine Variety
Fast Delivery For Standard
Machine
Well Defined Sops For All Function
On-time In Full
Throughput
Education And Alignment For Timely
Material Delivery
Performance Scorecard
Faster Payments
Faster Resolution To Customer Request
Customer Communication Formats
Collateral Advantage

36. Spares Function
Marketing:
Unrefusable /Mafia offers
Stores
Hired and trained the Lead
Designed and implemented
the
Planning system along
With SOP
Constitutes 5% of the
company's revenue within an
year
Designed mafia offers to create
monopoly
Rolled out the mafia offer
based on delivery commitment
Helped to organize the store
New inventory module
Buffer system
Picture Abhi Baki Hai...

37. “Yagna guys aren’t like those fancy consultants who make
fancy presentations but they actually get onto the shop floor to
get their strategy executed. They deliver more than what they
commit!
They are my business partners.”
- Mr. X, Chairman and MD
Happy Mr. X Speaks

38. YAGNA
Results

39. YAGNA DELIVERS RESULTS
FORBES
Precision Tools Manufacturer
Before
• Availability of Make-
to-Stock SKUs 60-
70%
• High Inventory
• Struggle to delivery
product variety
• Delivery
Performance 50%
After
• Availability of Make-
to-Stock SKUs >85%
• Inventory reduced by
30%
• Deliver 25% more
variety in a given
period
• Delivery
Performance
increased over 80%

40. YAGNA DELIVERS RESULTS
MIRANDA TOOLS
Precision Tools Manufacturer
Before
• Availability of
Make-to-Stock
SKUs 70%
• High Inventory
• High Production
Lead Time
After
• Availability of
Make-to-Stock
SKUs >90%
• Overall Inventory
reduced by 43%
• Production Lead
Time Crashed by
30%

41. YAGNA DELIVERS RESULTS
KOHLI INDUSTRIES
Printing Machines Manufacturer
Before
• No Capacity to take
more Orders
• 5-6Cr investment for
expansion
• Assembly Lead Time
150 Days
• Sales Stagnant
• Zero Spares Sale
After
• More than 100%
Capacity released
• No investment
• Assembly Lead Time
50 Days
• Sales 2X
• Spares Sales
contribution 5%

42. YAGNA DELIVERS RESULTS
BULLOWS PAINT EQUIPMENTS
Paint Booths
Before
• Sales stagnant
• Throughput stagnant
• High Project Lead
Time
• Many Projects open
at a time – High
Working Capital
After
• Sales 1.6X
• Throughput 1.7X
• Significantly Shorter
Lead Time
• Priority system
driving the project
sequence

43. YAGNA DELIVERS RESULTS
RAMDEVS MOTORS
Motors and Pumps Manufacturer
Before
• No Capacity to take
orders
• Inventory Turns < 7
• Firefighting on the
shop-floor
• Skewed production
and billing (>50% in
last 10 days)
After
• 100% more Capacity
exposed
• Inventory Turns 8
• No firefighting
• Uniform weekly
production and
billing

44. YAGNA DELIVERS RESULTS
LOSMA
Air & Liquid Filtration system for machine tools
Before
• Assembly Lead
Time 1 week
• Due Date
Performance
50%
• Sales Stagnant
After
• Assembly Lead
Time 1 Day
• Due Date
Performance
95%
• Sales 2X

45. YAGNA DELIVERS RESULTS
GODREJ LOCKS
Leading Locks Manufacturer
Before
• Channel Partner
Inventory Turns 4-
6
• Availability of
Make-to-Stock
SKUs 60-70%
• Lead time for
Made-to-Order
SKUs 45-60 Days
After
• Channel Partner
Inventory Turns
12-18
• Availability of
Make-to-Stock
SKUs >95%
• Lead Time reduced
by 50%