The document discusses the Theory of Constraints (TOC) management approach and its applications in a plant. TOC identifies the weakest link constraining an organization from achieving its goals. The plant aims to decrease inventory, costs and increase cash flow using the 5 steps of TOC: 1) identify constraints, 2) decide how to use bottlenecks, 3) use resources according to steps 1-2, 4) increase bottleneck efficiency, and 5) if new constraints emerge, return to step 1. TOC provides a new way to determine and address hindering factors compared to traditional methods.

1. Theory of Constraints and its
applications on the plant

2. A system
is as
strong as
the its
weakest
link.

3. •The Theory of
Constraints is a new
approach and different
from many traditional
approaches both for it’s
assumptions and
objectives.

4. Eliyahu M. Goldratt
31.03.1947-11.06.2011

5. • The Theory of Constraints is a
management discipline which provides the
determination of the factors which hinders
acompany reaching its objectives and the
application of necessary changes to remove
these factors
• According to this definition,our aim in the
plant is decreasing inventory level and
operational costs and increasing cash flow
simultaneously.

6. •We reached the
problems and thinking
of their solutions by
using 5 steps of theory
of constraints.

7. •What are the 5
steps and what
they refers to ?

8. 1) Identify the Constraints. There may
be more than one, but there are never
many.

9. 2) Decide how to use the bottlenecks.
(Exploit the binding constraints)

10. 3) Use the resources according to the
first 2 steps.

11. 4) Increase the efficiency/capacity of
the bottlenecks.

12. If there would be something
unexpected thing or occurs another
bottleneck ,go back to the 1st step.