2008 Goldratt Webcast on Critical Chain Project Management

Brad and I spent last weekend in Miami with Eli Goldratt reviewing the upcoming Critical Chain Project Management Webcast. This is the first in what will be a series of webcasts. This first series will be five 2.5 hour sessions starting on February 13, 2008. There are a number of viewing options including purchasing a link for $2500 and purchasing a seat at a group session in Denver for $500. There is more information at:

http://www.scienceofbusiness.com/Events/2008GoldrattWebcastSeries/tabid/140/Default.aspx

This link also includes a FREE 60 minute preview VIDEO by Dr Eliyahu Goldratt. Just click on the link and scroll to the bottom of the page for the video. You will need to register (which is free) in order to view the video. This free registration will also give you access to:

• A free preview video on Session 1 of the Mafia Offer Boot Camp. This video is located under the Events tab.
• Access to our archives of Theory of Constraints articles, success stories, good blog posts, etc.
• Access to our FREE Stuff, located under the Products tab which includes a job shop game (DBR game), thinking process software, and a few other items.

Both videos are worth you time to watch and I hope you enjoy them.

Here's to maximizing YOUR profits!

Dr Lisa Lang

(c)Copyright 2008, Dr Lisa, Inc. All rights reserved.

Upcoming Theory of Constraints Events

1st Quarter Group Mafia Offer Boot Camp
- January, 30, 31, Feb 1 2008 in Denver
- February 25, 26, 27 2008 in Denver
- March 24, 25, 26 2008 in Denver
- More information at http://www.mafiaoffers.com/

NEW REMOTE (on-line) Mafia Offer Boot Camp
- Done at your own pace and time of your choosing
- One on One support provided by phone conferencing
- More information at http://www.mafiaofferbootcamp.com/

PRIVATE Mafia Offer Boot Camp
- Done at your location and at a mutually convenient time
- More information at http://www.mafiaoffers.com/

NEW Theory of Constraint PRICING Project
- We usually do pricing projects as part of larger results based consulting engagements, but because they have been so successful (typically 10 to 20% return on sales), we have decided to offer stand alone pricing projects.
- If you have not yet gone through “Pricing using Theory of Constraints”, please see: http://drlisamaxprofit.blogspot.com/2007/05/pricing-using-theory-of-constraints.html
- More information at http://www.scienceofbusiness.com/Default.aspx?tabid=144

Goldratt CCPM Webcast starting February 13, 2008
- Watch Goldratt LIVE or rebroadcast.
- Dr Goldratt will be covering, never before released knowledge using the Strategy & Tactics tree.
- There are five 2.5 hour sessions. There are a number of options for viewing the webcast with pricing from $350 to $2500.
- More information at http://www.scienceofbusiness.com/Default.aspx?tabid=140

Executive Access Boot Camp
- Feb 28, 29, and March 1 2008 in Denver
- March 27, 28, 29 2008 in Denver
- More information at http://www.executiveaccessbootcamp.com/

SPECIAL: Free Shipping on the live recorded 3 hr workshop “Achieving a Viable Vision”, send an email to order for $99 (regularly $199). For more information: http://www.scienceofbusiness.com/Default.aspx?tabid=133

Excess Capacity for a Viable Vision

Question: How much excess capacity do you need to have to make a Viable Vision viable?

Answer: It depends. Squeezing more capacity out of your existing operation without investment is relatively easy (you read about it in The Goal, Its Not Luck, and Critical Chain). The hard part is selling it. You need an unrefusable market (a “mafia offer”) offer in order to sell all your capacity (you read about this in Its Not Luck). The Viable Vision is the specific strategy and tactics necessary for you to uncover your capacity and the market offer that will bring your company to have a profit level equal to your current sales level.

What percent of sales are your truly variable costs (TVCs)? Remember that we define TVCs as those costs that change when an additional product or service is sold. TVCs include raw material, sales commission, freight, subcontractors, and the like.

The higher your TVC or lower your throughput (T = sales – TVCs), the more excess capacity (or price premium) you will need to make it possible to turn your current sales level into your profit level in 4 years.

Here’s an example: If you currently have $10 million in sales and TVCs at 30% you will need $23 million in sales. This assumes that you could add these sales with your current labor and/or operation expense (OE). And, in many cases this is quite possible.

If you will need to add labor or other OE, then for each million in those costs that you add you will need to sell another $1.43 M (amount OE added divided by throughput). This is typically not a big deal (we have a client right now with about 65% TVCs), it is just something we have to take into consideration.

So, the more you can sell with your existing resources and investments, the quicker you can turn your current sales level into your profit level. And, your specific mafia offer will also play a big role in the amount of excess capacity you will need. If you can get a price premium, then you will need less capacity and less sales.
The smallest company on a Viable Vision right now started at $1.2 M in sales and the largest started at $4 B (billion!).

But this is way more information than you need because we will collect the data for your company, develop your Viable Vision, and spend 2 hours with you discussing your company and your Viable Vision for FREE, no strings. The only catch is that the CEO, President, or business owner must have attended one of my Maximizing Profitability events to be eligible for the free offer.

And if you decide that you would like guidance from us in achieving your Viable Vision, then 100% to 90% of our fees are based on YOUR results. If you don't get the results, you don't pay! And yes there is a 100% results based option!

Here's to maximizing YOUR profits!
"Dr Lisa" Lang

Welcome

Welcome to Dr Lisa's Max Profit Zone! We will discuss subjects related to maximizing profitability including Cash Flow, Cash Velocity, Mafia Offers (a Decisive Competitive Advantage), Drum Buffer Rope, Critical Chain, Demand Pull (or Goldratt's Distribuiton Solution), Throughput Accounting, and Goldratt's Theory of Constraints. If you have a question would like to see answered on this blog, please send it to DrLisa@ScienceofBusiness.com