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    Theory of Constraints

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    Juan Jose Rodriguez
    The document discusses the Theory of Constraints (TOC), an approach to managing production that focuses on identifying and exploiting system constraints or bottlenecks. Key points of TOC include identifying the bottleneck, maximizing its utilization through techniques like Drum-Buffer-Rope, and subordinating all other resources and processes to support the bottleneck. The goal of a TOC approach is to maximize throughput by ensuring continuous flow through the bottleneck resource. Performance is measured using indicators like throughput, inventory, and operating expenses.

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    Theory of Constraints

    Uploaded by

    Juan Jose Rodriguez
    52 views13 pages
    The document discusses the Theory of Constraints (TOC), an approach to managing production that focuses on identifying and exploiting system constraints or bottlenecks. Key points of TOC include identifying the bottleneck, maximizing its utilization through techniques like Drum-Buffer-Rope, and subordinating all other resources and processes to support the bottleneck. The goal of a TOC approach is to maximize throughput by ensuring continuous flow through the bottleneck resource. Performance is measured using indicators like throughput, inventory, and operating expenses.

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    Theory of constraints (1)

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    The document discusses the Theory of Constraints (TOC), an approach to managing production that focuses on identifying and exploiting system constraints or bottlenecks. Key points of TOC include identifying the bottleneck, maximizing its utilization through techniques like Drum-Buffer-Rope, and subordinating all other resources and processes to support the bottleneck. The goal of a TOC approach is to maximize throughput by ensuring continuous flow through the bottleneck resource. Performance is measured using indicators like throughput, inventory, and operating expenses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    52 views13 pages

    Theory of Constraints

    Uploaded by

    Juan Jose Rodriguez
    The document discusses the Theory of Constraints (TOC), an approach to managing production that focuses on identifying and exploiting system constraints or bottlenecks. Key points of TOC include identifying the bottleneck, maximizing its utilization through techniques like Drum-Buffer-Rope, and subordinating all other resources and processes to support the bottleneck. The goal of a TOC approach is to maximize throughput by ensuring continuous flow through the bottleneck resource. Performance is measured using indicators like throughput, inventory, and operating expenses.

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    THEORY OF CONSTRAINTS (TOC)

    Prof. Fabiola Regis Hernández


    Jan – May 2019
    SIMULATOR TOC

    Production the TOC way

    ¡ http://www.goldrattconsulting.com/tocsimulator
    ELIYAHU M. GOLDRATT
    THE GOAL: A PROCESS OF ONGOING IMPROVEMENT

    What should be the


    goal of a firm?

    What does
    productivity means?
    THEORY OF CONSTRAINTS

    ¡ Constraint. Is anything that


    limits a system’s performance,
    relative to the system goal.

    ¡ Bottleneck. Is any resource with


    a capacity equal or less than
    the demand placed upon it.
    PERFORMANCE INDICATORS

    ¡ Throughput. The rate at which money is generated by the system


    through sales.

    ¡ Inventory. All the money that the system has invested in purchasing
    things it intends to sell.

    ¡ Operating expenses. All the money that the system spends to turn
    inventory into throughput.
    PERFORMANCE INDICATORS
    OPERATIONAL FINANCIAL

    Throughput Net profit

    Inventory Return on investment

    Operating expenses Cash flow


    GOLDRATT’S RULE OF PRODUCTION SCHEDULING

    • Do not balance capacity, balance the flow.


    • The level utilization of a nonbottleneck resource is not determined by its
    own potential but by some other constraint in the system.
    • Utilization and activation of a resource are not the same.
    • An hour lost at a bottleneck is an hour lost for the entire system.
    • An hour saved at a nonbottleneck is a mirage.
    • Bottlenecks govern both throughput and inventory the system.
    FIVE FOCUSING STEPS

    1 IDENTIFY the constraint

    Of 2 EXPLOIT the constraint


    r y ts
    eo ain
    Th nstr 3 SUBORDINATE to the constraint

    C o
    O C
    T 4 ELEVATE the performance of the constraint

    5 If a constraint has been broken. REPEAT the process


    DRUM – BUFFER – ROPE

    What
    What is the
    Throughput?
    is the goal?
    constraint?
    DRUM – BUFFER – ROPE
    A planning and control system that regulates the flow of work-in-
    process materials at the bottleneck or the Capacity Constrained
    Resource (CCR) in a productive system.

    ¡ Drum
    Drum

    ¡ Buffer
    Buffer

    ¡ Rope
    Rope
    EXAMPLE: IDENTIFYING THE BOTTLENECK

    products
    Finished
    material
    Raw

    95 pieces 110 pieces 90 pieces ?? pieces

    Bottleneck
    CAPACITY RELATED TERMINOLOGY

    ¡ Capacity. Is the available time for production

    ¡ Bottleneck. Is what happens if capacity is less than demand placed on


    resource.

    ¡ Nonbottleneck. Is what happens when capacity is greater than


    demand placed on resource.

    ¡ Capacity-Constrained Resource (CCR). Is a resource where the


    capacity is close to demand placed on the resource.
    TIME COMPONENTS OF PRODUCTION CYCLE

    ¡ Setup time. Is the time that a part spends waiting for a resource to be set up
    to work on this same part.

    ¡ Process time. Is the time that the part is being processed.

    ¡ Wait time. Is the time that a part waits not for a resource but for another
    part so that they can be assembled together.

    ¡ Idle time. Is the unused time that represents the cycle time less the sum of
    the setup time, processing time, queue time, and wait time.

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