Almost every manager trying to meet targets, is dealing with obstacles that come his way. He overcomes a few, stumbles over the others. He is identifying constraints and removing them. Is this Theory of Constraints?
One of the pre-dominant styles of conventional management is management by objectives. On the face of it, the approach appears objective. However, it is not without flaws, as the following case studies highlight..
Current downturn is putting pressure on companies not just to reduce costs but also to reduce the working capital requirements. A significant portion of working capital is money locked up in inventory. The typical management approach towards reducing the inventory is by target setting. As long as numbers are met, the means can be justified?
‘An hour lost on the bottleneck is an hour lost on the entire system;
An hour gained on a non-bottleneck is a mirage’
Any business which manages stock to meet customer needs faces a key challenge in stock management –what is the right inventory? It would seem that almost all the mess of shortages and surpluses is caused by not knowing how much inventory to keep…