CONSERVATIVE ESTIMATES
Did you find the calculation fanciful?… These estimates have the following assumptions:
- You make everything to order and promise your customers a delivery time.
- Your market share is less than 25%.
- With OTIF100 and adopting TOC's management philosophy, you can achieve 100% OTIF, on-time and complete delivery.
- Few (if any) competitors in your market can meet the promised deadline so well.
- Your customers HIGHLY value delivery within the promised time frame.
If all of the above is valid, then the consequences are:
- In a relatively short time, you are able to sell your full capacity at non-discounted prices.
- If you increase shifts, that capacity is also sold without discounts, and it costs a fraction of your current operating expense.
- With the new way of managing production, your volume is higher without investments.
If you are interested in having us discuss your particular case, please contact us.
Let's do another estimate, but this time it's up to you to calculate.
In this video, courtesy of Arrie Van Niekerk, you'll see a water bottle empty in 19 seconds.
Your task is to think about what you would do to improve that time and estimate how long you can empty the same bottle. You can use some tools if you want, but without machines.
When you have estimated your number of seconds, write it down and watch the other video, to compare your idea and your estimate with reality.
Did you make your estimate? I recommend doing it before watching this other video.
