18
Mar
2011
Goldratt’s Golden Nugget #14
Sustaining Continuous Growth
Sustaining Continuous Growth
It is common to see, in mature TOC production implementations, that once sales have increased and the CCRs were elevated, the number of red orders might start to increase. If no corrective actions are taken, further increase in sales will cause the DDP performance to deteriorate (number of blacks increase) which endangers the decisive competitive edge of the company. Since in a VV implementation we want to continuously increase sales, the S&T guides us to put in place the mechanisms that should be used for further increase of capacity and for adjusting the buffers. The intention of this nugget is to deepen our cause and effect understanding that underlie those mechanisms.
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