1. These all stem for the same root core problem.
TOCICO 2012 Conference
Sales & Marketing Production Transfer Prices Project Management
265 UDE UD E #6
M ost com panies UDE #5 Very often, the sam e resource is needed m ore
V ery often P roject tha n one place at the sam e tim e.
suffer from a M anagers have to wa it
lack of sensible for a resou rc e to
strategy. perform an activ ity.
202 CO MPANY C UR REN T REA LITY
Late Night Discussions S upervis ors w ill take TREE Company C urrent R eality
m aterial/p arts to ke ep busy,
# 9 & # 10 e ven if it is n ot pa rt o f the
Tree
The impact on budget and
fo rm al sch edule.
(Production Page-4)
M arket Segm entation Avraham Y. Goldratt Institute 1992.
the planned lead -times.
C:UsersRichard.Denison
D ocum entsT heory of 309
AG I Docu me nt # 54 UDE Of ten a resource is
ConstraintsAgiC o-crt.vsd #4
245 UDE 310 required to perform
P roject Managem ent 401 There is a constant ne ed m ore activities on
263 UDE M ost com panies will not The re are com mo n P age-5 of 5 to reschedule resources other concu rrent
306 The s am e kind of
M ost com panies suffer extensively use the m ate rials/pa rts. resources are not and activities. projects.
badly from MDTs. potential of segm ented C han ges often resu lts in easily available.
m arkets to increase NP. e rrors & co nfusion.
UD E 305
Org.
P rioritie s are cons tan tly
202 UDE shuffled.
260 Alm ost all com panies 261 UDE 3 11 307
A sensible short and long periodically go M any com panies suffer 245.5 UDE M aterial/pa rts intend ed fo r one A delay in one
308
term strategy can be based through a M DT. badly from a M DT . M ost "cost-oriented" order are freque ntly dive rted to scheduled activ ity
Often a resource is delays the sch eduled
on extensive utilization of com panies will not a nother. required to p erfo rm s tart of the
market segm entation. extensively use the m ore than one ac tivity su bsequent,
o n the sched ule.
216 UDE potential of segm ented dependent a ctivities. 306
The s chedule is
Due to a M DT, m any m arkets to increase NP. neede d and used to
com panies have determ ine whe n
92 UDE U DE 3 09 3 03
transferred their m ost reso urc es and
M ost com panies that call The re are freq uent Existing priorities m ust U DE #8 activities should s tart. 305
246.5 expensive investm ent
259 themselves "m arket m aterial/p arts freq uently be ch ange d. M any tim es, an activity Often the original
In a M DT, the avenue to their com petitors for takes longer than the sc heduled ac tivity
For companies that logically oriented" still suffer from sh ortag es.
to retain em ployees zero return. tim e sc heduled (ev en tim es are unab le to
segment their markets, 244 243 m any of the "cost-oriented w ith early s tart, late accom m odate m ajor
243 by reducing price is changes without
there is very rarely the need M ost "Cost-oriented M any tim es the NP of policies. finish scheduled in).
usually not effective.
Behaviour
tak ing additional tim e.
to lay off em ployees when M any tim es the NP of the com panies will not the com pany will 3 02
som e m arket segm ents are com pany will increase if consider selling increase if they decide 260
210 UDE U DE 3 08 O fte n, in struction s ca n not b e
down. they decide to service a below "product cost." to service a
In a M DT, m any Du e dates are o ften carried ou t.
segm ented m arket. 246 segm ented m arket. 136 U DE #9 304
220.5 com panies are 91 missed. V ery often P roject There are m any
The freedom to M any RTM s are
Som e m arkets actually writing off 214 UDE Com panies 106 ma nagers have to time s, the custom er's
reduce prices is rarely based on Cost V ariation in an activity resp ond to changes in needs c hange m id-
are not price investm ents. After a m arket down have m ore
257 translated into an Accounting. 304 often occurs in the the projec t m id-way way th rou gh the
252 sensitive. turn (M DT), m any inertia. 3 01 c ourse of perform ing through the pro ject.
For m ost com panies, 258 increase in revenues. project.
M ost com panies can shift com panies are slow in Ch ange s a t one de partm en t the a ctivity.
M any segments Forma l sched ules are
there is no point in focus between m arket capitalizing on the U DE 3 07 often ha ve major ram ifica tions
trying to fully exploit a of the market are 209 un re alistic.
segments alm ost without m arket increases. 90 The re is too m uch fo r other d epartme nts.
m arket segm ent. oscillating The m ost expensive
changing their resources. 208 UDE People exped iting. 300
independently of investm ent of a Often, P roject M ana gers reduce sc hedule 302
In a m arket down, 241 have inertia.
each other. com pany is in its 242
activ ity plu s protection tim e to a lev el that Som etim es , c ertain activities in the
m any com panies M any tim es, satisfying a llows them to m eet the c ustom er's schedule are started before all
230 em ployees. 215 Usually the 105
lay off em ployees. a m arket's needs 3 00 requirem ent, rather than the level the y require d preceding, depe ndent
255 M any com panies After a M DT, m any required price is Sa tisfying the purpose o f have dete rm ined they need t o protect the activities are finalized and
208.5 does not require any T he curre nt system s d o not com plete.
For most companies using are not willing to com panies have to higher than the 238 UD E 210 the organization requ ires
sc hedule.
256 M any tim es, a M DT significant increase in 2 11 provide adeq uate safety
m arket segm entation, the reduce prices in reinvest in new total variable cost, M ost "cost-oriented" It is difficult to res pond th e synchronized effo rts of
M ost companies do is caused by a OE. U rg ent cu sto me de ma nds stocks/tim es to protect d ue-
potential for increasing order to increase em ployees. but lower than com panies will not to urge nt custorm er
30 3
not have a m onopoly 250 success of a date perfo rm anc e. m ore tha n o ne re source. Very ofte n, during the proc ess of
revenue far exceeds their volum e. consider selling the req uire expe ditin g.
on a market segm ent. M ost com panies can com pany's "product cost." dem and s. finis hing and c om pleting ac tivities,
sam e basic product UDE #7
available capacity. service different it is discovered th at changes are
com petitor. Projec t M anagers hav e required that im pa ct subse quent
m arkets using alm ost 240 for considerably difficulty in choos ing dependent a ctivities.
the exact same M any tim es different prices. the best o ptions.