Evaporating Cash Constraint The TOC Way
Presented by Ravi Gilani
Many organizations sometimes end up in the most undesirable situation of running out of cash. This impacts the very survival of the organization. Almost the entire time and attention of the top management is consumed in fighting one payment crisis after another.
No organization closes down because it is not making profits. Organizations close because it runs out of Cash.
When an organization is short of cash, payments to vendors, banks, employees start getting delayed. Soon vendors stop supplying raw materials unless they are paid money upfront. This in turn results in shortage of necessary raw materials. Eventually the customer orders start getting delayed, thereby reducing sales. The reduction in sales shrinks cash availability further, and eventually organization shuts down.
It is possible to reverse the cycle and organization can get back to good financial health using Theory of Constraints.
The webinar on evaporating cash constraint explains the process for this.
About the presenter:
Ravi Gilani, Founder and Managing Consultant of Goldratt India, introduced TOC in India in1998.
He helps organizations increase their profits by simplifying their measurements.
Ravi enjoys striving for the impossible by challenging sacred assumptions and simplifying complexity. He is currently engaged in curing diabetes for self & others.
Ravi is also a past TOCICO Board member and he enjoys sharing his TOC journey with a regular column for India’s premier business magazine, Outlook Business.