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TOC Reference Bank - TONAK a.s.
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ORGANIZATIONAL INFORMATION  < back
Company TONAK a.s.    
Location Novy Jicin - Czech Republic.
Company Contact   Mr. Michal Simek CEO phone +420 556 202 216; e-mail: michal.simek@tonak.cz
Comments Joint stock company * Sales: 700 000 000 Kč (= 29,9 Mio. USD) Project was implemented during year 2002/2003 (March to March) in parallel with new ERP system (Navision) implementation, 18 months results evaluation period from April 2003 till September 2004.
IMPLEMENTATION INFORMATION
Location Czech Republic
Industry Segment Textile (Headwear production)
Number of employees 1100
Area Production, Customer Orders Administration (Order taking and Customer service), Performance Measurement
Implementation Date From April 2003 to September of 2004
Systems in use Not selected
WHAT WAS DONE?  
TOC Applications Implementation of DBR in production
Software implemented - DBR, VBM and Throughput Accounting decision making principles were supported by functionality developed and integrated into ERP system (Navision) by Autocont CZ.
WHO DID THE WORK?  
TOC company Goldratt CZ, s.r.o-Jan Velkoborsk, Pavel Majer and from TONAK- Radim Juchelka
RESULTS OF IMPLEMENTATION
IMPLEMENTATION RESULTS  
Revenue Increase T - increased by 15%
Inventory Decrease IDD - reduced by 15%
Expenses Decrease TDD - reduced by 82%
On-time performance
To above 98%
Percent improvement
Lead times
Percent improvement reduced by 15%
Brief summary - Production of V-shape � big number of production steps (80 � 150 operations), a lot of handcraft, big portion of non-productive time (moisturizing, drying, stabilization after chemical processes, etc.). - Some customer orders must go through technical department � production samples must be developed and produced first, then approved by customer. Only after that standard customer order is taken and corresponding work orders issued. � Customer orders prioritized according Throughput Accounting decision making principles. - Confirmation of the orders due dates according to available drum capacity allowed to reduce TDD by 82% and increase the Throughput by 15% without increase of CAPEX and number of employees. - Buffer Management implemented also in Customer Order taking process in order to minimize overall delivery terms (from order taking to delivery)