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Does your major Supply Chain initiative compromise any KPI?
Companies undertaking any major improvement initiative often focus on improving an important performance parameter. However, the initiative may end up compromising some other performance parameter. Such initiatives need to be relooked at. For example, improving availability may end up compromising freshness or product assortment.
If the initiative doesn’t address the root cause but only removes a symptom, it needs to be redesigned. A well-designed improvement initiative should improve all the key performance indicators simultaneously instead of improving one and compromising another.
It can be done by focusing on the overall system constraint and leveraging it to its potential. TOC helps in identifying and executing such improvement initiatives.