Embed Size (px)
DESCRIPTION
Power point presentation on Theory of Constraints by students of Symbiosis Institute of Operations Management (SIOM), to give you insights to find out bottlenecks and continuous improvements of the process.
Citation preview
THEORY OF CONSTRAINTS Sourabh Joshi
Sriyans Patwa
Sugyan Panda
SIOM | Symbiosis Institute Of Operations Management
Definition
History
Assumption
Steps Involved
Types of Constraints
Applications
Drum Buffer Rope
Pros & Cons
SIOM | Symbiosis Institute Of Operations Management
DEFINITIONS:
A constraint is anything that prevents the system
from achieving more of its goal.
The theory of constraints (TOC) is a management
philosophy that views any manageable system as
being limited in achieving more of its goals by a
very small number of Constraints.
SIOM | Symbiosis Institute Of Operations Management
Introduced by Eliyahu M. Goldratt in 1984 in his
book titled The Goal.
Mr. Goldratt adopted the concept with his
book Critical Chain, published in1997.
The concept was extended to TOC with
respectively titled publication in 1999.
Also known as Theory of Bottlenecks.
SIOM | Symbiosis Institute Of Operations Management
THEORY OF CONSTRAINTS Strengthening Your "Weakest Link"
Significance of bottlenecks
Speed
Improvements wasted
SIOM | Symbiosis Institute Of Operations Management
ASSUMPTIONS
Organizations can be measured and controlled by
variations on three measures:
1. Throughput
2. Operational expense
3. Inventory
SIOM | Symbiosis Institute Of Operations Management
STEPS INVOLVED
Identify
Exploit
Subordinate
Elevate
Repeat
SIOM | Symbiosis Institute Of Operations Management
Steps involved
SIOM | Symbiosis Institute Of Operations Management
TYPES OF CONSTRAINTS:
o External constraints.
Material
Market
o Internal constraints.
Equipment
People
Policy
SIOM | Symbiosis Institute Of Operations Management
SIOM | Symbiosis Institute Of Operations Management
APPLICATIONS IN DIFFERENT AREAS
Finance & Accounting
Throughput Accounting
Throughput = sales – variable cost
Project Management
Critical Chain Project Management(CCPM)
all activities converge to a final deliverable
Marketing and Sales
Sales Process Engineering
SIOM | Symbiosis Institute Of Operations Management
DRUM-BUFFER-ROPE
SIOM | Symbiosis Institute Of Operations Management
CASE STUDY ON OREGON(OFD)
Problem faced: High Inventory
High lead time
Make to stock
Solutions: Find out the
constraint
Limited Freezing Space
Exploit the constraint
VFD-variable frequency drives
Subordinate the rest of the organization
Control the flow of Cooked/Dry food
Make to stock + make to order
SIOM | Symbiosis Institute Of Operations Management
PROS
Increases in productivity with minimal changes to operations
Reduce cycle time
Time from receipt of customer order to shipment
Optimizes inventory
Improves communication between departments
Dramatically reduces the damages caused when the flow of
goods is interrupted by shortages and surpluses.
SIOM | Symbiosis Institute Of Operations Management
CONS
Variation
Identification
Time Frame
SIOM | Symbiosis Institute Of Operations Management
REFERENCES:
Book “The GOAL”
www.google.com
en.wikipedia.org
www.toc.tv
www.mindtools.com
www.isixsigma.com
SIOM | Symbiosis Institute Of Operations Management
ANY QUERIES??
SIOM | Symbiosis Institute Of Operations Management
