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Goldratt India (Formerly Time n Cash) is a management consulting firm that collaborates with its clients to improve their Sales and Cash. It achieves sustainable bottom line results in months rather than in years through the application of Dr. Eli Goldratt’s Theory of Constraints (TOC).
Goldratt
India helps its clients
to grow both top line, and bottom line significantly through
TOC. Apart from significant growth in top line (minimum
25%) and bottom line, client organizations also achieve some
or all of the following.
1.
Quantum
improvement in On-Time Delivery. Clients
have been able to improve their On Time Delivery from less
than 10% to over 95%.
2.
Substantial
Reduction in lead time. Clients
are able to shrink their lead time by a factor of 2 to
6.
3.
Reduction in
Finished Goods Inventory. Finished
Goods reduction ranges from 20% to 50%.
4.
Reduction in
Work-In-Process (WIP). Clients
have reported WIP Reduction in the range of 30% to
80%.
5.
Reduction in receivables. Typical
reduction achieved in receivables is 20% to 30%.
The above have
been achieved simultaneously while growing top line by about
25%-100%, turning around from loss to profit / increasing
profits by 50%-100%.
Clients:
A partial client
list of Goldratt
India includes
ˇ
Godrej &
Boyce
ˇ
Eicher
ˇ
Tin Plate Company
of India
ˇ
Salora
International
ˇ
Indo Asian
Fusegear
ˇ
Hari
Machines
ˇ
Nat Steel
Services:
Goldratt
India provides
education on TOC, analyzes current situation from a TOC frame,
evolves a holistic TOC strategy, and also collaborates in the
strategy implementation.
What is Theory of
Constraints?
The Theory of
Constraints (TOC) is a management philosophy that treats a
corporation not as a collection of independent processes but
as a complete system. Dr. Eli Goldratt, the creator of the
Theory of Constraints, often explains his theory with a simple
but effective analogy. He likens a corporation to a
chain. Just as the links of a chain work together to
form a complete system that is capable of transmitting a great
force, so too the various divisions and departments of a
competitive corporation work together to generate great
profits for the shareholders.
TOC maintains that
every system is subject to at least one constraint, which
prevents the system from achieving infinitely high levels of
performance. For the system that is a corporation, the
often unidentified constraint prevents it from achieving
infinite profits, just as a chain's weakest link limits the
chain's capacity to transmit force.
Do such
constraints exist? Do we know of any corporation that reports
infinite profits? We need only look at the very finite
profits reported by every corporation, to verify that indeed
something exists that limits profits. That something is a
constraint on the performance of the corporation.
TOC provides
the theoretical framework and the tools with which a team of
knowledgeable executives can continually identify the
constraint in their corporate chain and improve its
performance, thus improving the performance of the entire
corporation.
Organizations try
to improve their performance by utilizing all their resources
as much as possible rather than focussing on their critical
resource. This in turn leads to losing focus.
TOC helps organizations in focusing, and thereby achieve Big
Hairy Audacious Goals (BHAG) in relatively short
time.
Does TOC really
work? Will it work in the Indian
environment?
In India there are
many organizations that have had good experience of using TOC.
ˇ
An automobile
component manufacturer that was continually losing sales for
the past 5 years improves its sales by 29% in less than 5
months.
ˇ
A capital goods
manufacturer in India (that was losing money for two and half
years) started making profits within 100 days of the
introduction of TOC. This organization has continued to
make more and more money for the last 48 months. Its
sales increased by about 7 times in 3.5 years, and it has its
order book full for next 6 months. The profit for 2002-3
is the highest ever since inception in 1971, and is almost
equal to its turnover in 1999-2000.
ˇ
A
consumer electronics manufacturing organization achieved the
following benefits through TOC application:
1.
Manufacturing lead-time was reduced from 5 days to less
than a day
2.
Finished goods inventory was reduced by 30%
3.
WIP was reduced by 80%
4.
Substantial reduction in rework
5.
30% increase in productivity
6.
Stock-outs were eliminated
ˇ
An electrical
manufacturing organization improved its on time delivery by
from less than 10% to 84%, sales by 30 %, started making
profits after losing money for two years, and most importantly
increased cash by 17% in less than 3 months through the
application of TOC.
ˇ
A Hospital
Equipment Manufacturer improved its sales by 25% and cash by
35% within a year of initiating TOC. Today, for the
first time in its 56 years of existence, this organization is
totally debt free!
Ravi
Gilani
Ravi Gilani is the
founder and the Managing Consultant of Goldratt
India.
Ravi introduced
Dr. Eli Goldratt’s
Theory of Constraints (TOC) in India. He
is the first Indian 'Jonah' (TOC Expert). Dr.
Goldratt has personally trained Ravi in Supply Chain
Management. Dr. Eli Goldratt and the Directors of
The Theory of Constraints International Certification
Organization Board, TOC-ICO have recently certified Ravi as
a expert in
- TOC Holistic
Strategy
- TOC Operations
Management
- TOC Finance and
Measures
- TOC Distribution
Management
- TOC Thinking
Processes
For over 39 years,
Ravi's industrial experience has evolved from a core in
Manufacturing Engineering through to Total Quality Management
and Business Process Re-engineering to TOC.
Prior to founding
Goldratt India, Ravi was Chief Consultant at
ECS Limited
(Formerly Eicher Consultancy Services Limited).
During his consulting career of over 10 years, Ravi has
consulted for and with many Indian and transnational
organizations, such as L&T and Godrej & Boyce in
engineering, Salora International in consumer electronics, RPG
Cables in telecommunications, Alstom in power equipment,
Indian Aluminum, Dalmia Cement & OCL India in cement, ICI
in chemicals, Exide and Eicher in automobile components etc.
Before starting
his consulting career, Ravi had gained valuable 'Hands-on'
experience for 21 years in operations in the automobile
industry (TELCO and Eicher).
In addition to
consulting, Ravi regularly disseminates his knowledge at a
number of universities. He had made presentations at the
Antioch University, Seattle and the University of Central
England at Birmingham. He has taught MBA students at many
business schools including the Indian Institute of Technology,
Delhi as a visiting faculty.
Ravi is an alumnus
of the Indian Institute of Technology, Delhi.
He enjoys striving
for the impossible by challenging sacred assumptions and
simplifying complexity.
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