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TOCICO CONFERENCE 2007 Using TOC principles to enhance the ...

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Company’s Company s Situation after Cost Reduction<br />

Cost reduction program:<br />

• Outsourcing of personnel<br />

22<br />

© <strong>2007</strong> <strong><strong>TOC</strong>ICO</strong>. All rights reserved.<br />

<strong><strong>TOC</strong>ICO</strong> <strong>2007</strong> Conference<br />

• Unit cost reduction through lot size optimization<br />

Results:<br />

• Lower sales due <strong>to</strong> long delivery times and<br />

delays<br />

• Serious cash-flow problems<br />

• Operating losses due <strong>to</strong> higher expenses for<br />

overtime

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