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Goldratt India
(Formerly Time n Cash) is a professional business
consulting firm that collaborates with its clients in
discrete manufacturing industries 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 31 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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