Cupertino, CA -- (SBWIRE) -- 05/20/2015 -- "The Case for Cloud-based Supply Chain Management Today" was authored by leading industrial journalist, Thomas R. Cutler. Cutler discusses "The Goal," first published by Eliyahu M. Goldratt and Jeff Cox in 1984, which described Theory of Constraints (TOC). It detailed precisely the change management thinking that is now considered standard by most using cloud-based SCEs. Sergio Rattner of the Lean Enterprise Institute defined the Theory of Constraints as an organizational change method that is focused on profit improvement. The essential concept of TOC is that every organization must have at least one constraint. A constraint is any factor that limits the organization from getting more of whatever it strives for, which is usually profit. "The Goal" defined constraints as bottleneck processes in a job-shop manufacturing organization. However, many non-manufacturing constraints exist, such as market demand, or a sales department's ability to translate market demand into orders.
The Theory of Constraints defines a set of tools that change agents can use to manage constraints, thereby increasing profits. Most businesses can be viewed as a linked set of processes that transform inputs into saleable outputs. TOC conceptually models this system as a chain, and advocates the familiar adage that a "chain is only as strong as its weakest link." Since the focus is the constraint, implementing TOC often results in substantial improvement in just three months without allocating significant resources.
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Ultriva's (http://www.ultriva.com) cloud-based platform leverages seamlessly integrates with leading ERP and MRP systems, to deliver an end to end pull based replenishment solution. Based in Cupertino, CA, Ultriva implements a global demand driven manufacturing model by providing full visibility, scheduling, and sequencing of production of customer orders. Ultriva was named one of the Great Supply Chain Projects by Supply & Demand Chain Executive magazine and recently named one of 50 Best Supply Chain Blogs by SupplyChainOpz. The company's global footprint is increasing rapidly with implementations in wide variety of industry sectors and enterprises such as Magellan Aerospace, CareFusion, Emerson, Ingersoll Rand, McKesson, Triumph Group, Regal Beloit, Thermo Fisher, and more. Follow Ultriva on Twitter at @Ultriva.