1. Theory of Constraints http://www.managementsupport.com

2. Outline Introduction to Constraints
Five Steps Of Theory of Constraints
Drum Buffer Rope
Evaporating Cloud Method
The Batch Size Problem
Chain Analogy
Issues with TOC
Measurements & Financial Issues

3. Constraints Constraint 60 units Per day 70 units Per day 40 units
Any system can produce only as much as its critically constrained resource
Constraint
60 units
Per day
70 units
Per day
40 units
Per day
60 units
Per day
Maximum Throughput = 40 units per day

4. Issues with TOC Advantages
Improves capacity decisions in the short-run
Avoids build up of inventory
Aids in process understanding
Avoids local optimization
Improves communication between departments

5. TOC, TQM and JIT
All 3 methods attempt to reduce variation and recognize the interdependencies.
Statistical process control is emphasized in the quality area to help identify ways to reduce variations.
Cells are used to reduce the dependencies, U cell configurations, where one worker is moving with the processed piece from one machine to another
Predetermined schedules, in TOC, reduce both statistical fluctuation and dependent resources.