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Management should focus its attention on the leverage points in Supply Chain.
If we look at the improvement projects in supply chain of a company, we are likely to find a plethora of projects, each one trying to improve the company’s operations by a little bit. Progress on these projects is also monitored at the periodic review meetings, which creates a management overload and overwhelms the team.
It need not be so.
Every supply chain has a constraint and a few plant level bottlenecks. These areas act as leverage points, where even a small improvement can have a significant impact on the company’s goal. In contrast, other projects working on non-leverage points are unlikely to have a significant impact, some may even have zero or negative impact.
We must create a system where management attention is focused on improving these leverage points. It will not only accelerate improvement towards the goal, but also cut down several other trivial projects to reduce team’s workload.
TOC shows us the way to do it.