S&T Tree - Consumer Goods - Inventory Turns

Dr. Eliyahu M. Goldratt

Info

Level of TOC knowledge acquired:

Advanced and Intermediate

Length:

47 pages

Designed for:

Business owners, Consultants and Implementers

Topics:

Strategy and Tactics, Decisive Competitive Edge (DCE) and Viable Vision

Application:

Strategy & Tactic Tree

Language:

English

Format:

Mac and Windows

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The S&T tree is the organizer of all the knowledge gained by analyzing an organization using the other thinking processes. The logical structure of the S&T tree guides organizational focus – starting from the highest objective, the S&T tree logically derives which actions must be taken in which order at all levels of the organization. An S&T tree provides the roadmap to build, capitalize, and sustain a decisive competitive edge.

The S&T Tree for Consumer Goods was created to create a Decisive Competitive Edge for a consumption-driven production environment (supplying according to consumption) to respond immediately and reliably to demand where the customer tolerance time is less than the production lead time. In a Make-to-availability environment, Inventories are maintained in the supply chain to ensure 100% availability with minimum stock. Customer orders are composed mainly of very small quantities of known (repeat) items and the commitment to the market includes the maximum immediate demand for a single order, enabling reduced inventories and increasing inventory turns.

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