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8/12/2019 Theory of Constraints PPT
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Theory of ConstraintsBy
Eka Darmadi L 3094802May Eka S 3094814
Steven Auryn H - 3105812
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IntroductionWhat is TOC ?
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Introduction
What is TOC ??
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Introduction
TOC Focus on 3 Activities Throughput Inventory Operating Expense
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Introduction
In TOC we Increase Throughput
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Introduction
In TOC we Minimizing Inventory
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Introduction
In TOC we Decreasing Operating Expense
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Introduction
After we
Throughput Inventory Operating Expense
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Introduction
After we The Result
1. Financial Performance Profit
2. Return on Investment3. Cash Flow
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Introduction
Traditional View point Pressing in Increasing Throughput Decreasing Operating Expense Minimize inventory are not important
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Introduction
TOC Recognize lowering Inventory Help: Better Product Lower Price Responsiveness to Customer needs
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TOC Steps(Preview Only)
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TOC Step by Step
TOC Step:
1) Identify the organization Constraint(s)2) Exploit the binding Constraint(s)
3) Subordinate everything (step 2)4) Elevate the binding Constraint(s)5) Repeat the process
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TOC Step by Step
1. Identify the organization Constraint(s)
External Constraints Internal Constraints Loose Constraints Binding Constraints
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TOC Step by Step
2. Exploit the binding Constraint(s)
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TOC Step by Step
3. Subordinate everything (step 2)We are no longer think about efficiency
Assume that the grinding process by themaximum of its capacity
it will add number of work in process to thedrilling process, since the capacity ofprocessing in the drilling process is lowerthan the grinding process.
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TOC Step by Step
4. Elevate the binding Constraint(s)We Try to continue to improve
Adding more production can be solved byadding more shift in the drilling process .
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TOC Step by Step
5. Repeat the processTry to evaluate the whole process
Because the TOC objective is to continuallyimprove the performance by manage the
constraint
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TOCIllustration of Constraints
(Video)
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Illustration of Constraints
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Theory of Constraints
Case Study
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Background
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Background
Founded in :1970 Company Type : Manufacturing Product : Semiconductor, Fiber
Optic, Fiber Cable.
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The Problem
1. How Lucent become more productive ?2. How Lucent improve their performance ?3. How Lucent can Increase their profit ?
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Case Study
Problem Simulation
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TOC Implementation
Source: Tocca.com
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
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TOC Implementation
Step 1: Identify Constraints
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TOC Implementation
Step 2: Squeeze or exploit the constraint
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TOC Implementation
Step 3: Subordinate to the constraintRemove all excessive WIP
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TOC Implementation
Step 3: Subordinate to the constraint
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TOC Implementation
Step 4: Elevate the constraint
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TOC Implementation
Step 5: Repeat the process
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TOC Implementation
After Implementing TOCThroughput from : 10 / Day
Become : 14 / Day
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TOC Result Lucent
1. The Product can developed twice Fast2. The Project can be completed on time3. Increase in profit
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TOCSummary
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TOC Summary
Theory of Constraints (TOC) is goodtheory for factory .
TOC main idea is buffer and rope
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Questionand Answer
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Thank YouFor Your
ttention