The name of the game is turnover—speed of turnover. How many times can we use those limited dollars, over and over again, to complete jobs and to increase net revenue accumulation? That's how they score this game. Anything that constrains that turnover speed is what we must now address.
Was this the factor unmentioned during that committee meeting in Hershey? Is lazy working capital a major detriment of accumulated paper inventories critical to profitability? What do you think? Me? I'm currently hooked on Goldratt's TOC—Theory of Constraints. We just didn't understand the full implications of idle materials in the print production stream at that time. I'm now convinced that we pay harsh penalties for delaying working capital turnover. But TOC, and a more complete understanding of JIT, take us beyond raw paper backlogs.
- Places:
- Hershey