The Theory of Constraints (TOC) is a management philosophy that views any managed system as being limited in achieving more of its goals by a very small number of constraints. The core of TOC is that organizations should identify their constraints, then restructure and subordinate other processes to ensure the constraint is utilized as much as possible. The five focusing steps of TOC are to identify the constraint, exploit it, subordinate everything else to it, elevate the constraint, and then identify a new constraint as the original one is broken. Real-world examples demonstrate how manufacturers have applied TOC principles like buffers to actively manage constraints and continuously improve throughput.

1. Theory of Constraints Presented By Upma Joshi Mohd.Arish Bablu RajibLochan Sonalika

6. Throughput

7. Operating expense

12. This implies the need to examine the entire process to determine which process limits the throughput. For example, in the example on slide 10, suppose the sales department was only selling the product output at the rate of 3 per hour.

14. For example, in many operationsall processes are shut down during lunchtime or during breaks.

17. As the constraint effective utilization increases, it may cease to be a constraint as another process becomes one.

18. In that case the emphasis shifts to the new process constraint.

22. Suppose you have a product made from three components.

25. The final product is then shipped to the customer.

27. Nothingshould, therefore, impede the progress of component 1.

30. The subassembly fromcomponents 1 and 2 have constraint time invested, so we would not want themwaiting for component 3.

31. This calls for another assembly time buffer to begenerated at the Assembly 2 area.

33. Multiple-time Buffers…

34. PLANT TYPES T Plant

36. Supply chain logistic

37. Finance and accounting

38. Project management

40. Conclusion What is the Theory of Constraints and How Should it be Implemented?","Beyond The Goal". That is acknowledges the sources of information and inspiration for the Thinking Processes and Critical Chain methodologies. Theory of Constraints referenced foundational materials. "Standing on the Shoulders of Giants" .