SM5.0 Theory of Constraint (TOC) Find Remove Bottleneck

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The Theory of Constraints (TOC) is an important optimising technique that focuses on improving the throughput of work at the (usually) single bottleneck or constraint in the workflow.  

This Skills Module draws together a number of the 12Faces articles on the subject.  One research project demonstrated that 89% of improvement in a manufacturing business came from the application of TOC. Yellow Belt.  button LMS subscribe

Sensitivity Analysis: Experiment with Changes to Your Business

What is sensitivity analysis? Free tool shows impact of changes on business; instantly! Use this free Business Modelling Tool to see the impact of (e.g.):percentage change in pricechange in sales revenuestaff numbers changeAccounts Payable and Receivable change and the impact on cash flowimpact of changes on profitabilitychange on business selling pricewhat revenue do you need […]

Monitor Business Performance: Discover Your Business Trends

Two Thirds of an Iceberg is Hidden Under Water! Sadly, your accounting system is probably not making valuable information very obvious. You have to do accounts for tax and compliance purposes.You think this is just an expense you have to live with. But, properly diagnosed, these accounts can tell you much, much, more about your […]

Partner & Affiliate Program

Traditional Professionals are Trusted Advisors! We provide services to you and your clients via our affiliate program You are a trusted professional service provider to your clients  You might see issues in their business that need more attention They might ask you for a referral to someone who can help with a business problem In either case, […]

Small Business Strategy Consultant and Coach

24/7 Strategy Solution for Small Business In a big business, the Chief Financial Officer (CFO) has the vital role of strategy coach and tracking what’s going on and using that information to recommend future strategy. Most likely, you are too small to afford a CFO on staff at the moment! So you are missing out […]

Business Coaching Service

Get personal business coaching and business mentoring on business strategy Just like it is hard to learn piano by yourself, business coaching can help build business skills It can be lonely out there for business leadersYour friends and family may not understand what you do and the problems you face.  Also, there are many things […]

SM4.1 Eight Types of Waste

The well-known Toyota car company identified seven types of waste that had an impact on Productivity and Profit.  An eighth has been added more recently.  By gradually reducing these wastes, you can improve the Productivity and Profit of your business.  In Japanese, this is referred to as reducing “muda” (pronounced Moo-da).  This article discusses how these types of waste might show up in your business; and what to do about them.  Waste reduction is an ongoing and probably never ending process.  This article gives lots of examples of waste in each of the categories.   To be most effective, you should tackle the largest waste items first so as to make the largest gains first. Waste reduction is a team effort ideally as those on the front-line probably already know what is wasteful; they are just not empowered and trained to combat waste.

Read this if: you are working on making your business operate more efficiently

Relates to: 80/20 Rule for finding the biggest issues, Kaizen for incremental improvement, Constraints and bottlenecks.  Our Profit Acceleration optimization toolkits; Double Profit in 100 Days and Double Growth and Profit in 365 Days.

Audio/visual Materials: none

Degree of Difficulty: Yellow (entry level) .  Not hard to do but requires perseverance.  It is the first article in a series on managing waste to improve your profit

SM1.0 How 1% Price Change Gave 11% Profit Increase

Price is a major determinant of the profitability of your business!  A price change of as little as 1% can often lead to profit increases of up to 11%.  A consultant study across 1,200 major businesses found that a 1-2% increase in price, assuming demand remained constant, on average would have increased the company’s profit by 11%. Clearly, this could be a quick boost to your company’s profitability.

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For a quick example of the impact of a price change, consider a business turning over $500,000 per year.  Let us further assume that it makes a 5% profit on that, which gives it a profit of $25,000. If it increased its price by 1%, and assuming demand remained constant, that would lead to an extra $5,000 in income. This extra $5,000 over the original $25,000 is a 11% improvement.  This is a yellow belt article.   

C3.1 Introduction to Grow your Enterprise in 365 Days Campaign

The third of our signature 12Faces courses is a Growth Strategy Over One Year.  This course builds on the rapid optimisation carried out during the course C2.0 Optimise Your Business Enterprise in 100 Days (Optimise100).

This Growth Strategy is designed to work with the various types of enterprise we service: 

For-profit, Public Sector and NFP

Each of these enterprises will likely want to grow something.

For Profit are interested in profit and/or revenue growth.

Public Sector and Local Government are interested in serving a greater number of clients better within their budget constraint.

NFP may want to raise more money to sponsor good works and/or service more clients within the available budget.

Generally, we speak of Profit in this course.  And that is of interest even to organisations not seeking to maximise profit.  These organisations will want to maximise growth while not making a loss; the other side of the profit coin.

Rather than write about the goals of each type of business each time, we generally refer to the process a for-profit business will follow. This is just as applicable to the various types of NFP.

To continue to grow, we discuss how to increase your revenue so that more money goes to your profit bottom line.  Since this is a slower process, we will allow ourselves 12 months to achieve it.  Nevertheless, these two combined are likely to more than quadruple the profit of your business in just 15 months.

The techniques discussed in this training course, “Grow365″ are designed for growth businesses.  They might be a relaunch of an existing business or a startup

This introduction to the course outlines the process with links to relevant articles. The next stages links are also at the bottom of this article.

SM5.2 Benefit from Theory of Constraints in Retail

The Theory of Constraints (TOC) argues that good growth can be achieved by focusing on the one or two limiting factors or “Constraints” in a production system. This article applies TOC to the Wholesale/Retail sector.

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