This website covers knowledge management, personal effectiveness, theory of constraints, amongst other topics. Opinions expressed here are strictly those of the owner, Jack Vinson, and those of the commenters.

No point in producing, even if you have installed capacity

There's a nice video from Goldratt Consulting Brazil on a Betânia Lácteos case study. They are a dairy facing some pretty familiar challenges in supplying their market while dealing with variability in demand and supply.  "If it doesn't rain, the cows don't give milk."  

Almost every supply chain is challenged to meet needs that always feel like they are in competition: Ensuring high availability to enable more and more sales while at the same time keeping inventory levels low to keep costs under control.  And in the dairy business, excess inventory leads directly to losses due to spoilage.

The TOC replenishment solution creates an ability to meet both needs.  But it drives some new ways of thinking that are sometimes uncomfortable.  I loved the comment of one of the speakers, "There is no point in producing, even if you have installed capacity" when the demand isn't there. This goes counter to years and years of beliefs in the manufacturing world, and it takes good direction to move the organization down a different path.

[Disclaimer: I have been working for Goldratt Consulting for the past 5+ years.]  

What is the project? Designing vs Managing

Objects in motion tend to stay in motion