A production management theory which dictates that volume is controlled by a series of constraints related to work center capacity, component availability, finance, etc. Total throughput cannot exceed the capacity of the smallest constraint, and any inventory buffers or excess capacity at non-related work center is waste.
is a management approach that focuses on identifying and relaxing the constraints that limit an organization's ability to reach a higher level of goal attainment.
A manufacturing strategy that attempts to remove the influence of bottleneck constraints on processes.
("TOC") A four- step management philosophy developed by Dr. Eli Goldratt that involves: Identifying the system constraints Work ing to exploit those constraints (either through strengthening the constraint or getting maximum performance out of the key constraint) Subordinating everything else to the above decision (given the key constraint, all operation al decision s involve improving the process es as much as possible relative to this controlling constraint, e.g. a bottleneck in a production process). Work ing to elevate the constraint (improve or eliminate the bottleneck and then reexamine the system). Once the critical constraint is eliminated, a new constraint will arise to take its place. So the process continues until the smallest level constraint is identified that can impact on the whole system. In project management, the key constraint (using TOC ideas) is the critical path of the project since it determines the length of the project and hence is the key constraint. TOC is used in the critical chain approach as an alternative to CPM or PERT for determining the length of a project by using critical resource control and application. [D04523] 34
The essential concept of TOC is that every organization must have at least one constraint. A constraint is any factor that limits the organization from getting more of whatever it strives for, which is usually profit. Click here for a related article on this topic.
An approach to production management which aims to maximise sales revenue less materials (throughput), whilst simultaneously reducing 'inventory' and operational expense. It focuses primarily on factors which act as constraints to this maximisation.
Also called constraints management, it is a set of tools that examines the entire system for continuous improvement. The current reality tree, conflict resolution diagram, future reality tree, prerequisite tree and transition tree are the five tools used in its ongoing improvement process.
The Theory of Constraints is an overall philosophy developed by Dr. Eliyahu M. Goldratt and usually applied to running and improving an organization. ToC consists of Problem Solving and Management Decision-Making Tools called the Thinking Processes (TP).
Made popular by Eli Goldratt in the 1980s with his book "The Goal." The basis of TOC is that in every production process there are bottlenecks or constraints that determine the throughput of a factory. Eliminating these constraints will greatly improve throughput.
A management philosophy that can be viewed as three separate but interrelated areas - logistics, performance measurement, and logical thinking. TOC focuses the organizations scarce resources on improving the performance of the true constraint, and therefore the bottom line of the organization.
A thinking process optimizing system performance. It examines the system and focuses on the constraints that limit overall system performance. It looks for the weakest link in the chain of processes that produce organizational performance and seeks to eliminate it and optimize system performance
A lean management philosophy that stresses removal of constraints to increase throughput while decreasing inventory and operating expenses.
Eliyahu Goldratt describes this in his book, the goal, a model that challenges many traditional accounting and business practices. He makes the case that we often do not know what our true business goal is. One goal every business shares is the need to be profitable. A particular business will have other goals as well. These goals must be well thought out, clearly stated, and communicated to everyone in the organization. Goldratt's procedures focus on three metrics: throughput (the rate at which the system produces income), inventory ( all the money the system invests in things to sell as well as all money tied up in the system), and operating expense (money spent turning inventory into throughput). The constraints that prevent achieving the goals are primarily system restraints. Therefore we must determine what to change, what to change to, and how to cause change. Goldratt describes five sequential steps to remove constraints and progress toward a goal: 1. Identify the system constraint. 2. Decide how to exploit the constraint. 3. Subordinate everything else. 4. Elevate the constraint. 5. Go back to step one.
A management philosophy developed by Dr. Eliyahu M. Goldratt that can be viewed as three separate but interrelated areas—logistics, performance measurement, and logical thinking. Logistics include drum-buffer-rope scheduling, buffer management, and VAT analysis. Performance measurement includes throughput, inventory and operating expense, and the five focusing steps. Thinking process tools are important in identifying the root problem (current reality tree), identifying and expanding win-win solutions (evaporating cloud and future reality tree), and developing implementation plans (prerequisite tree and transition tree). Syn: constraint theory. See: constraints management.
Theory of constraints (TOC) is an overall management philosophy that aims to continually achieve more of the goal of a system. If that system is a for-profit business, then the goal becomes one of making more money, in the present as well as in the future.