Current downturn is putting pressure on companies not just to reduce costs but also to reduce the working capital requirements. A significant portion of working capital is money locked up in inventory. The typical management approach towards reducing the inventory is by target setting. As long as numbers are met, the means can be justified?

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‘An hour lost on the bottleneck is an hour lost on the entire system; An hour gained on a non-bottleneck is a mirage’

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A-new-inventory-management-paradigm-for-made-to-stock-companies (1)

Any business which manages stock to meet customer needs faces a key challenge in stock management –what is the right inventory? It would seem that almost all the mess of shortages and surpluses is caused by not knowing how much inventory to keep…

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I am sure most of you must have observed and experienced the extent of disharmony that exists in any organization. Unless sources of disharmony are resolved, situation will not change. Can TOC bring in harmony among people?

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I think, the best of internalizing new knowledge is by analyzing case studies. So instead of just posting insights, I would like to share a case with you and some questions to ponder at the end of it…

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