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Theory of Constraints

IMPROVING ROCE THROUGH A SMART MANAGEMENT OF THE INTERDEPENDENCIES OF THE ORGANIZATION
The only way to achieve effectively the ROCE improvement is manage the interdependencies among internal department (Operatons, maintenance, procurement,..), suppliers, customer and stakeholder. In every system (SME, no profit organization, large corporation, ..) we worked on we found a 30% minimum extra costs due to the poor interdependencies management.The understanding of the interdependencies among these components provides a lens through which we can know better and improve our organisations. In order to improve the poor interdependencies management we must control process stability and we must eliminate the cognitive constraints. Theory of Constraints lead the management to build a cost-effective organization. Many cases in a widespread kind of companies are showing how to install an ongoing improvement process based on this method.
Improving ROCE Improving ROCE [186 Kb]