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Driving Growth Through TOC-presentation To FTS Team, Franchisees
Driving Growth Through TOC-presentation To FTS Team, Franchisees
through TOC
GOLDRATT CONSULTING
Main Undesirable Effects list
Shortfall in desired product mix for sales
2. Production is loaded with orders for the next 90 days/ 60 days forecast
Components Central
Assembly CFA
WH WH
CFA
Key elements of Pull
Distribution
1. Replenish to actual sales Vs. Push from stock
2. Capitalizing on Aggregation of Demand
Reduces the variability and hence the needed inventories are smaller
Frequent Replenishment
Replenishing to demand to fill the inventory target
Buffer target
is increased Inventory is
Too Much in Buffer target
to provide
the Green is decreased
more
zone - to reduce
protection
unnecessary
inventory cost
Replenishmen
t requirement
Replenishmen
t execution
Inventory residesConsumption
Too Much in rate is back
Consumption rate is
the Red zone Availability is at
to normal rate again
temporarily
risk
increased
Pilot Design
Pilots Plan
Pilot 5 1
CFA
~30 days 5 ~15 days RS
Plating
Case and
2
Manufacturing WOT
CA
Central
FPS Assembly CFA
WH 3
LFS
4
30-120 days FTS
CFA
Sourcing
6 Pilots
1,2,3
Pilot 6
Pilot 4
Pilot 4- Fastrack
Objectives
To streamline the current replenishment system & make it
automatic & free of any manual intervention
Check the effect of DBM on availability and on target
inventories
Reduction of stock-outs
Sales improvement due to better availability
Inventory turns, while maintaining not more than 2 months
stock at the store
How are we going to do it?
List of stores which would be part of the pilot process:
BLR (7), Upc Kar (2), HYD (6), Vizag (2), CHEN (4), PUN (4), Upc Mah(3), Mumbai
(1), DEL (1), COIM (1), BUB (1), GUW (1), MP (2), AMD (1)
Plan Buffers for each store (keep in mind sunglasses activation starting
14th Jan)
Plan buffer stocks for the corresponding CFAs and central stock to be
held at CWH
Work out the anticipated monthly sales
Confirm the availability in pipe line
Decide the pilot start date after allocation, re-alignment of stocks
Link up ETP software for automatic upload initial stock daily sales for
all stores
Test daily uploads & accuracy of data
Roll out
Continue the Bi-weekly Billing Tue & Fri and if volumes support, more
frequent billing
What is different from
today?
The stock norm what we have defined is static
and we keep only adding new introductions /
remove the dropped ones.
We had intended to review stock norm once in six
months and we have not done the same
DBM dynamically changes the stock level required
at stores depending on the actual retail sales, thus
higher opportunity for sales and better stock turn
Currently, we have left the decision of billing to
franchisees and we would like to enforce the same
based on DBM proposal.
Current issues with south
stores
State Store Issues