Toc Sample

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Toc Sample

  1. 1. Theory of Constraints Superfactory Manufacturing Excellence Series Lean Overview 5S & Visual Factory Cellular Manufacturing Jidoka Kaizen Poka Yoke & Mistake Proofing Quick Changeover & SMED Production Preparation Process (3P) Pull Manufacturing & Just In Time Standard Work Theory of Constraints Total Productive Maintenance Training Within Industry (TWI) Value Streams
  2. 2. Contents © 2007 Superfactory™. All Rights Reserved. <ul><li>Introduction </li></ul><ul><li>Background and History </li></ul><ul><li>Components and Implementation </li></ul><ul><li>Knowledge Check </li></ul>
  3. 3. Introduction © 2007 Superfactory™. All Rights Reserved. <ul><li>The Theory of Constraints (TOC) is a systems-oriented process improvement methodology that is based on the theory that a system has a single goal, and that systems are composed of multiple linked activities, one of which acts as a constraint on the whole system. </li></ul><ul><li>TOC is a methodology to focus on removing and exploiting the constraint in order to optimize throughput. </li></ul>
  4. 4. Components and Implementation © 2007 Superfactory™. All Rights Reserved. <ul><li>Constraints </li></ul><ul><li>Five Steps Of Theory of Constraints </li></ul><ul><li>Drum Buffer Rope </li></ul><ul><li>TOC and Lean </li></ul><ul><li>Benefits and Issues with TOC </li></ul><ul><li>The Goal – Financial Issues </li></ul><ul><li>Implementing TOC </li></ul>
  5. 5. Five Steps Of TOC © 2007 Superfactory™. All Rights Reserved. <ul><li>Identifying the constraint </li></ul><ul><li>Decide how to exploit the constraint </li></ul><ul><li>Subordinate everything else to the decision in step 2 </li></ul><ul><li>Elevate the constraint </li></ul><ul><li>Go back to step 1, but avoid inertia </li></ul>
  6. 6. Step 1: Identify the constraint © 2007 Superfactory™. All Rights Reserved. <ul><li>A company or system is like a chain so, if the goal is to increase the capacity of the chain, strengthening any link other than the weakest is a waste of time and effort. In order to identify the constraint, the company should find a way to measure the capacity of each process and then track actual throughput against the capacity to determine where capacity utilization rates are the highest. </li></ul>Internal External <ul><ul><li>Process constraints </li></ul></ul><ul><ul><ul><li>Machine time, etc. </li></ul></ul></ul><ul><ul><li>Policy constraints </li></ul></ul><ul><ul><ul><li>No overtime, etc. </li></ul></ul></ul><ul><ul><li>Material constraints </li></ul></ul><ul><ul><ul><li>Insufficient materials </li></ul></ul></ul><ul><ul><li>Market constraints </li></ul></ul><ul><ul><ul><li>Insufficient demand </li></ul></ul></ul>
  7. 7. Drum, Buffer, Rope © 2007 Superfactory™. All Rights Reserved. 60 70 40 60 Constraint (Drum) Rope Buffer
  8. 8. TOC and Lean Manufacturing © 2007 Superfactory™. All Rights Reserved. <ul><li>Differences </li></ul><ul><ul><li>Lean Manufacturing aims to eliminate all forms of waste in the production process, whereas Theory of Constraints is a tool that focuses on eliminating the waste associated with underutilized capacity or labor. In other words, Theory of Constraints aims to spread fixed costs over a higher volume of production by increasing the volume of output, resulting in lower fixed costs per unit of output. Meanwhile, Lean Manufacturing is a broad set of tools that aims to reduce both fixed costs and variable costs per unit of output. </li></ul></ul><ul><ul><li>In some cases, Theory of Constraints advocates the intentional use of buffer inventories to ensure that a constrained process never operates below capacity whereas Lean Manufacturing usually aims for one-piece-flow and the minimization of WIP, since excess WIP between processes often leads to defects and other costs. </li></ul></ul>
  9. 9. Issues with TOC © 2007 Superfactory™. All Rights Reserved. <ul><li>Upstream operations must provide only what the constraint can handle </li></ul><ul><li>Downstream operations will only receive what the constraint can put out </li></ul><ul><li>Constraint must be kept operating at its full capacity </li></ul><ul><ul><li>If not, the entire process slows further </li></ul></ul>

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