Identifying the constraints on cash generation: Basis of a methodology for continuous improvement

Inside organisatons we always fInd constraints which the cash generaton process a long and tortuous path. Our aim in this artcle is to offer a theoretcal review of these constraints, from the process of transformation through to value added. This review takes a different point of view from classical management, focusing on small and medium-sized already established manufacturing organisatons. Finally, the artcile mentions guidelines, with regards to cash generation, which propose continuous improvement: retrospectve analysis and identifying the critical process; Defining key parameters and strategic pilotng; Identifying the main element which limits cash generaton within the critcal process; Defining an acton plan to reduce, control or eliminate the constraints on genera-ton; Establishing the previous steps as a contnuous cycle.