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POOGI in Supply Chain
Most supply chain teams have a laundry list of improvement projects. The important question is… Do they have a structured process for prioritizing the high leverage ones?
TOC has a structured Process of Ongoing Improvement, called POOGI. It helps in identifying the high leverage improvement projects to yield maximum benefits for the business.
The highest leverage project is exploiting the system constraint, which is defined as the resource which limits the system from achieving more of the goal. If the constraint is in supply chain (input material or production resource), we must exploit it fully. The resource must be utilized to its full capacity and whatever is coming in the way must be removed to increase the throughput passing through the constraint.
If the constraint is not in the supply chain, we must subordinate the entire working of the supply chain to the overall system constraint. For example, if consumer demand is constraining the system, supply chain must identify the obstacles coming in the way of meeting full consumer demand, and remove it.
Focus on just two projects to get maximum business benefit. First, exploit the system constraint fully. Second, remove the biggest obstacle coming in the way.
This sharpened focus will give you maximum bang for the buck.