Vector Consulting Group (VCG), which is using the Theory of Constraints (TOC) of famed physicist and management guru Dr Eli Goldratt to carry out consultancy jobs for the Indian industry, appears to be achieving fairly healthy growth rate in revenues.
The company, which was floated around the outset of 2005 by three engineering management professionals, is looking at revenues of around Rs 15 crore in 2009-10.
“These revenue projections are from scratch levels when we started out in end-2004 or beginning 2005. We are achieving 100% growth year on year. Three of us broke out and formed Vector Consulting Group. We had just two clients to begin with, which include Tata Metaliks and Crompton Greaves,” VCG’s Mr Kiran Kothekar said.
VCG is using the the Theory of Constraints(TOC), propounded by the well-known physicist Eli Goldratt in the 1980’s that assumes every organisation has a leverage point which can be exploited to give a quantum jump in improvement in a relatively short time.
Incidentally, according to VCG’s Satyashri Mohanty, TOC looks at the constraints that a company is facing and homes in on the leveraging point which can be exploited to trigger sales and profits.
VCG is, at the moment, focusing on three industry domains. These include consumer goods, covering FMCG, consumer durables, fashion products, auto spare parts, custom manufacturing and engineering and construction.
“Our consulting is implementation focus and not recommendation oriented which is normally the case in consulting. Thus, we concentrate on removing constraints and achieving results which the management thinks is unattainable. Our fees are, accordingly, linked to the incremental profits,” Mr Mohanty said.
To fuel a company’s growth, VCG quite often follows a “hand-holding” approach where it begins from the shop floor level and ends at the distributing stage. “It’s like the build, operate and transfer model. We encompass the whole supply chain,” Mr Mohanty said.
Interestingly, the Vector team of 15 consultants has been trained by Dr Eli Goldratt and is certified by the US-based Theory of Constraints International Certification Organisation. “He’s our guru,” Mr Kothekar remarked.
Following Crompton Greaves and Tata Metaliks, VCG has consulted for Fleetguard Filters of the Cummins group, Godrej Interio, office furniture division, Liberty Shoes, Top 1 Lubricants Indonesia and Abhishek Industries of the Trident Group.
“We are also engaged with companies in the Tata group like Rallis India and TRF, the Godrej Group and Raymond Group,” Mr Mohanty said.