What is the main objective of most manufacturing companies? To make a profit – both in the short and long term. However, at some point, profit inevitably reaches a “ceiling” and it becomes increasingly difficult to make a profit.
This constraint, this limitation of processes, is best illustrated visually by the neck of the bottle. Focusing improvement efforts on this constraint is
way to increase profitability.
The profitability service offered by NORTUS is directly related to this theory of constraints (TOC):
Many companies fulfil the orders they receive, generate revenue and repeat this cycle. In order to earn more, but without necessarily raising product prices, it is useful to apply the TOC methodology, which helps to accurately assess which products are more profitable than others, which can be sold at cost and which need to be increased. This is not just mathematics, but also focusing the whole organisation on the most profitable products. Finally, it should also be reflected in the company’s incentive system (where the focus is on profitability rather than, for example, sales figures).
This NORTUS service offers a very targeted methodology for creating rapid improvement. It is suitable for both streaming and project-based activities.