Theory of constraints -SIOM
- 1. THEORY OF CONSTRAINTS Sourabh Joshi Sriyans Patwa Sugyan Panda SIOM | Symbiosis Institute Of Operations Management
- 2. Definition History Assumption Steps Involved Types of Constraints Applications Drum Buffer Rope Pros & Cons SIOM | Symbiosis Institute Of Operations Management
- 3. 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
- 4. 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
- 5. THEORY OF CONSTRAINTS Strengthening Your "Weakest Link" Significance of bottlenecks Speed Improvements wasted SIOM | Symbiosis Institute Of Operations Management
- 6. 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
- 7. STEPS INVOLVED Identify Exploit Subordinate Elevate Repeat SIOM | Symbiosis Institute Of Operations Management
- 8. Steps involved SIOM | Symbiosis Institute Of Operations Management
- 9. TYPES OF CONSTRAINTS: o External constraints. Material Market o Internal constraints. Equipment People Policy SIOM | Symbiosis Institute Of Operations Management
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- 11. 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
- 12. DRUM-BUFFER-ROPE SIOM | Symbiosis Institute Of Operations Management
- 13. 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
- 14. 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
- 15. CONS Variation Identification Time Frame SIOM | Symbiosis Institute Of Operations Management
- 16. 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
- 17. ANY QUERIES?? SIOM | Symbiosis Institute Of Operations Management