Goldratt India is a management consulting organization that collaborates with its clients in discrete manufacturing to improve their Time and Cash.  It achieves sustainable bottom line results in weeks rather than in months and years through the application of Dr. Goldratt’s Theory of Constraints (TOC).  

Goldratt India helps its clients to shrink their lead-time by at least 50% in less than 13 weeks by focussing on the weakest link in their Supply Chain. Organizations improve their bottom line significantly through the TOC Production System.  Apart from bottom line improvement, organizations also achieve some or all of the following. 

      1.      Reduction in rework and rejection.
2.      Improvement in On-time Delivery.
3.      Reduction in Finished Goods Inventory.
4.      Reduction in Work-In-Process (WIP).
5.      Increased customer orders due to shorter lead-times promised and achieved.
6.      In certain cases higher prices for the same product due to shorter lead-time.
7.      Velocity increase in Cash to Cash cycle. 

We have observed that many organizations have orders but are unable to deliver due to cash shortage. These organizations gain significantly through the reduction in their Cash to Cash cycle.  For cash-starved organizations, this is the single largest factor in their ability to turnaround.  

Theory of Constraints and Lead-time reduction.  

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 processing in large batches, and thereby increasing waiting time for the components being processed.   Components in most discrete manufacturing organizations have relatively short processing time.  Hence in the total manufacturing lead-time there is a large component of waiting time.  For these organizations the ratio of total manufacturing lead-time to processing time ranges between 20-100.  Through the application of TOC the waiting time is reduced by a factor ranging from 2 to 10. 

Does TOC really work?  Will it work in the Indian environment?

 There are over 5000 different organizations all over the world that have benefited tremendously from the application of TOC.  This includes Intel, Texas Instruments, Lucent Technologies, General Motors-Cadillac Division, Ford, Boeing, Samsonite, Bethlehem Steel-Sparrows Point Division, Pratt & Whitney, General Electric, Procter & Gamble etc.  Most organizations that have gained competitive advantage through TOC are reluctant to acknowledge TOC, since they do not want their competitors to know that they are using TOC lest they lose their competitive edge. 

In India too, there are many organizations that have had good experience of using TOC.  

 ·         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

 ·         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 money for the last 24 months, and it has its order books full for next 6 months.   

·         A large Indian capital goods manufacturer substantially improved its on time delivery, lead time and profits through TOC. 

 People at Goldratt India

 Ravinder Gilani (Ravi) is the founder and the managing consultant of Goldratt India.

As managing consultant of Goldratt India and Certified Deliverer of AGI, Ravi introduced TOC in India, and now focuses his efforts on increasing the wealth of his clients through a systematic application of Dr. Eli Goldratt's Theory of Constraints. He is the first practicing 'Jonah' (TOC Expert) in India. He is also the first Indian member of the AGI global network of associates.  Dr. Goldratt has personally trained Ravi in Supply Chain Management.  He was recently invited by Dr. Goldratt to be trained as an expert in the Theory of Constraints.

 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 the Theory of Constraints (TOC).  

Prior to founding Time n Cash, Ravi was Chief Consultant at ECS Limited (Formerly Eicher Consultancy Services Limited).  During his consulting career of over 9 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-a subsidiary of ALCAN in metals, Dalmia Cement & OCL India in cement, ICI in chemicals, Exide 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 now teaches MBA students at 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.