Investment caster gains 10% in sales and throughput in 30 days of TOC

Precision investment casting company Bescast’s president Lee Watson says the firm achieved “10% improvement in our top line revenue and bottom line results … within 30 days of completing training,” using Goldratt’s Theory of Constraints (TOC) ‘Drum-Buffer-Rope’ and ‘Buffer Management’. The Ohio, USA-based manufacturer was a beta test site for enterprise software (ERP) vendor Lilly Software’s ‘Viaual Power Boost’ programme version of TOC. It chose the approach specifically for manufacturing planning to increase production flow and improve on time delivery while also maximising use of constrained resources. Watson says the implementation and its results required “the highest level of commitment from everyone in the company.” But he claims: “We’re now seeing increases in shipments, throughput, scheduling, and profitability. It’s exciting to realise how much we can accomplish working together and using the right tools.” A clue to the success, beyond the commitment and the proven achievements of those brave enough to run all the way with TOC, is use of Lilly’s ERP to provide real time business information everywhere. As Watson says, “We are consistently communicating information between every department, including engineering, management, and the shop floor.” He also notes that cultural issues have been overcome, commenting that staff have adapted well to the new management strategy and scheduling techniques – itself another achievement. So good were the results that at last weeks’ Lilly user conference in Flordia, Bescast became the firm’s 2002 User of the Year “for demonstrating superior implementation and outstanding performance.” Says Richard Lilly, Lilly’s president and CEO: “Over the last year, Bescast employees have undergone intensive training. We have been impressed with their strength and dedication toward improving their business processes… As a Beta site, they have also provided valuable input towards the development of Visual DBR (the TOC variant of its scheduling ERP component). Bescast’s vision, energy, and commitment are why we selected them as our User of the Year.”