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Know your ‘constraints’ Why Management by Objectives is flawed. Battling the efficiency syndrome. Effortlessly! - Vector Consulting Group. Auto Supply Chain in India – a mishmash of “Push” and “Pull” methods? - Vector Consulting Group - Vector Consulting Group. What is THEORY OF CONSTRAINTS (TOC)? - Vector Consulting Group. Apparent in Hindsight | Vector Consulting Group | TOC. Dedication As disciples of Eli Goldratt, we are heavily influenced by his thinking. He trained us to always take a systems view, seek causal linkages between various seemingly disconnected problems till we hit the leverage point.

He taught us that the truth is revealed by critical deductive logical thinking approach, not just by examining data. This book is a tribute to him and his approach to thinking. This book is also dedicated to all our clients. Preface In last few decades, leading management thinkers like Jay Forrester, Peter Senge, Eli Goldratt amongst many others are highlighting the need for taking systems view of organization and managing it with a systems approach. In this book, we have taken the example of the Indian auto component industry to highlight unsolved problems and the need for a systems approach in management to deal with them.

These problems have reached a stage where they are now accepted as “typical” industry issues. Theory Of Constraints and the Thinking Process - Vector Consulting Group. About us - Vector Consulting Group. Vector Consulting Group (VCG) was established in 2005 with a vision to help companies achieve market share growth in their respective industries by developing unique supply chain capabilities that provide a competitive edge. VCG uses the platform of Theory of Constraints (TOC) solutions and thinking processes for developing these capabilities for its clients. VCG is an implementation-focused consulting firm that links a significant portion of its fees to the benefits derived by its clients. VCG accepts only holistic, company-wide assignments, which can deliver quantum results beyond the expectations of management. Within its ten years of existence, VCG has expanded to a size of 75 consultants and is considered as one of the fastest growing management consulting companies in India.

It is now working extensively for large corporates within the Tata Group, Godrej Group, Raymond Group, Bajaj Electricals Group, Trident, Kirloskar and Cummins Group. For more Client Interviews Click here 2015. Theory of Constraints: Paradigms & Applications of TOC - Vector Consulting. While there is an ongoing debate on wether managing an organization an art or science, developed by Dr Eli Goldratt, Theory of Constraints (TOC) assumes that it is possible to apply the principles underlying the development of hard sciences, like physics, in area of management of organizations. Or in other words managing an organization is a science. The two principles which have lead to development of hard sciences are the principle of inherent convergence and the principle of inherent harmony. No scientist can ever prove the veracity of these principles. They only strongly believe in them because it has not been proved wrong yet. The beliefs have fuelled the growth of the hard sciences in last few centuries.

Principle of Convergence (The inherent Simplicity) Hard science (like physics or chemistry) believe in principle of convergence. Similarly in organizations, there are interactions between various departments. Principle of Harmony (Inherent Win-Win) TOC Success Stories. Insights for Equipment Manufacturing | Vector Consulting Group. The TOCICO ( Theory of Constraints International Certification Organization) annual conference in Tokyo was a fantastic experience.

Isn't it quite amazing that every time we meet and discuss, we realise that there is so much to learn still? Of course the icing on the cake was Eli's sharing the key messages from his new book “Isn’t it Obvious?” Back to this moment - In continuation of our efforts to share insights gained from our implementations, we present the second newsletter dedicated to Engineering and Construction. One of the major challenges for organizations in this domain is to make the final integration (erection and commissioning) happen in a timely manner. In most cases, the de-synchronization issues crop up only at this stage. The pressure of time drastically reduces after the plant starts but what is left behind is a trail of many open items. Organizations, which have used Critical Chain Project Management have learnt the way to get out of the vicious loop. Solutions for Equipment Manufacturing | Vector Consulting Group.

Custom Manufacturing companies, which design a product, manufacture and deliver it to an order, have one of the most complex operations' environments. Sharing of design and manufacturing resources across multiple projects/orders coupled with changing product mixes, pose a significant challenge in resource management and delivery execution. These organizations suffer from time to time starvation of manufacturing facilities despite having a good order book.

The pressure to keep manufacturing facilities utilized, force them to change priorities, which in turn leads to de-synchronization. There is always pressure to add resources, despite having low overall utilization numbers. Frequent expediting, high overtime expenses and order delays are almost a norm. Organizations have tried many approaches to deal with the problems like standardization, dedicating manufacturing facilities, implementing ERP, advanced production schedulers, lean techniques, 6-sigma and so on. Diagnostics Corner Tools. Fighting Fakes in Auto Parts. March 2015 If you own car or bike, at some point in time, it will go in for repairs and maintenance. At that point in time the mechanic may replace one or few of the parts. Do you know if these are genuine? Trade in counterfeit and fake components constitutes a large and expanding market.They range from decorative items like grilles and hubcaps to components like brakes that can be critical to the safety of the car and its driver.

Fake parts are not only rampant in the case of cars, but are equally popular for trucks, buses and two-wheelers.Though often perceived as a 'lesser crime', it has far reaching consequences. The Automotive Component Manufacturers Association of India has reported that up to 20 percent of all road accidents that occur in India are due to counterfeit auto parts.The counterfeiting of parts also affects over 400 companies in India by leading to lost sales and gives a serious blow to their credibility.

Fighting Fakes: An arduous chore 1. 2. 3. 1. 2. Insights on Automobile & Auto Components | Vector Consulting Group. The TOCICO ( Theory of Constraints International Certification Organization) annual conference in Tokyo was a fantastic experience. Isn't it quite amazing that every time we meet and discuss, we realise that there is so much to learn still? Of course the icing on the cake was Eli's sharing the key messages from his new book “Isn’t it Obvious?” Back to this moment - In continuation of our efforts to share insights gained from our implementations, we present the second newsletter dedicated to Engineering and Construction.

One of the major challenges for organizations in this domain is to make the final integration (erection and commissioning) happen in a timely manner. In most cases, the de-synchronization issues crop up only at this stage. The pressure of time drastically reduces after the plant starts but what is left behind is a trail of many open items. Organizations, which have used Critical Chain Project Management have learnt the way to get out of the vicious loop. Solutions for Automobile & Auto Components | Vector Consulting Group. The success story of Toyota has shaped the management thought process of entire auto industry. Almost every auto company swears by principles of JIT and wants to see inventory move between locations closest to the timing of real demand. However this approach has mostly resulted in stronger player in the supply chain forcing the weaker player to keep high inventory in their books and warehouses , while trying to enjoy the benefits of low inventory with either last moment inventory placement from vendors or pushing the excess out to the downstream partner, like a dealer.

The inventory at the dealers and the component vendors are mostly mismatched – large excess in many SKUs while shortages in others. The Win-Lose approach eventually deteriorates into Lose and Lose when the assembly plants of the dominant player gets into frequent rescheduling due unavailability of parts from vendor warehouses or increased periods of shutdowns to correct for piling inventory at the dealers.