Flow management system for maximising business revenue and profitability

Abstract

Most for-profit organisations must constantly improve their business strategies and approaches to remain competitive. Many of them choose to embark on Lean or Six Sigma journeys with the intention of maximising productivity and increasing sales. Despite a significant progress in the development of the Big 3 Improvement Methodologies (Lean, Six Sigma, Theory of Constraints – TOC), many manufacturers are still involved in ineffective operations, resulting in longer-than-desired lead times, late deliveries, high inventories and considerable operational costs. All of these business errors seriously challenge the company’s competitiveness. The aim of the paper is to demonstrate the importance of effective analysis of maintaining the appropriate level of inventory in gaining a competitive advantage of the company using the company's key resources in the competitive struggle on the market while conducting continuous reporting of reasons for not achieving the assumed business goals, and using the principles of the economy of bandwidth in order to maximize the profitability.