ABSTRACT
One perspective is an evaluation of the operational performance of the business. The Theory of Constraints (TOC) operational methods are capable of being much faster and much more reliable, usually without adding more cost or investment. TOC experts would analyze what comprises the lead time to manufacture or fill a customer order and establish a range of potential improvement. In a manufacturing environment, a TOC expert would question batch sizes and whether efforts to minimize set ups have actually gone too far. Applying the concepts of improving flow using TOC methodology will decrease lead times throughout the supply chain, increase on time delivery performance and improve fill rates, which will minimize lost sales. Furthermore, the TOC thinking would be to construct a value-based offering, guaranteeing customers reliable delivery, with the option of an even faster response time, for a premium appropriate to the customers' benefits.
