September 10, 2010
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The Power of Cause and Effect - Part 2 | top
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By Eliyahu M. Goldratt, August 2010
In January 2009, the electronics component industry, facing an unprecedented drop in orders in
December 2008 (by 50%) had planned to immediately react with a massive cut of its workforce.
A proper analysis done at that time, [foot note 1: "The power of cause and effect" by Goldratt (January 2009)] revealed that this expected reaction was not needed and that it would lead to grave consequences. Unfortunately, most electronics component manufacturers did lay people off - just to face, less than three months later, a surge in demand. All the signs are indicating that these companies are now about to make a similar mistake which will lead to even graver consequences.
In December 2008 the drop in demand for the component manufacturers was not a result of a drop in consumer demand for electronic consumer goods. As a matter of fact, the dollar value of purchases of electronic consumer goods, in all the major markets of the world, did not drop by more than 2 to 3 percent, and in terms of units sold actually increased...
The Power of Cause and Effect - Part 1
english version | versión en español
Now and into the Future
In 3 days, learn directly from Dr. Eli Goldratt what your company can do to immediately free up much more cash and generate more profits than any of the cost cutting activities will accomplish; and with the same actions, strengthen and begin to immunize the company from future economic downturns.
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TOC, Startups and Academia – a winning formula | top
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Few months ago Dr. Goldratt started his quest to show how TOC can significantly impact the success of a Technological Startup and how this combination of TOC and startups can bring significant value to professors teaching in business schools.
Starting with his definition of successful startups Dr. Goldratt shows how to systematically build, capitalize and sustain such an enterprise. The approach brings significant benefits to both, entrepreneurs and investors.
Moreover, having professors teaching their area of specialization through a holistic approach offers an undeniable competitive edge to the Business Schools they are teaching at. It is the mechanism of involving professors of Business Schools in the development of the Strategy and Tactics for Startups the TOC way, that enables their understanding and internalization of the holistic approach.
A real win-win-win-win for every party involved (entrepreneurs, investors, professors and universities).
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Effectiveness of Business Consulting using TOC – Case study: ABB Ltd. | top
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Assessing the effectiveness of business consulting in operations development projects
"To assess the success of business consulting in development projects, project data were collected from twenty projects in a multi-national company called “ABB Ltd”. All of the projects involved the development of internal operations through collaboration between an internal operations development group and the respective business units of ABB Ltd. In all of these projects, the TOC philosophy was the main methodology."
"This study of the multinational company ABB Ltd has demonstrated how the input of development projects can be compared with output. Having applied the theory of constraints (TOC) methodology in 20 consulting projects of the case company, a positive impact was recorded. As noted above, the average duration of the projects was 16.6 months and the average NPV was US$14.3 million. The average total cost (including the investment amount) US$570,600. The average payback period was less than three months."
"The results demonstrate the usefulness of the TOC approach in the large dispersed network of a multinational manufacturing company."
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ABB - Towards Operational Excellence
by Alex D'Anci
Highlights of ABB's internal processes for improving its global operations using TOC as well as Lean and other improvement methodologies. Topics covered include: TOC deployment, the operations improvement process and consultant organization, as well as insights from successes and failures. 42 min, English
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Anniversary Offer: GWS CCPM | top
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