This document provides an overview of the Theory of Constraints (TOC). It discusses key concepts in TOC like constraints, bottlenecks, throughput, inventory, operating expenses, and exploiting constraints. It explains that the goal is to make money now and in the future through sales rather than production. Bottlenecks limit the system and floating bottlenecks are unpredictable and should be avoided. It also introduces TOC tools like the three global measures (throughput, inventory, operating expense), Drum-Buffer-Rope, and how TOC differs from just-in-time approaches.
Improving throughput with the Theory of Constraints and Queuing TheoryAndrew Rusling
Practical advice on how to improve the throughput of your agile team, by using the Theory of Constraints and Queuing Theory. Shows how to apply TOC to your task board. Explains how Queuing Theory is built into Scrum and Kanban, powering you to make the most of them.
The Theory of Constraints is a methodology for identifying the most important limiting factor (i.e. constraint) that stands in the way of achieving a goal and then systematically improving that constraint until it is no longer the limiting factor.
Improving throughput with the Theory of Constraints and Queuing TheoryAndrew Rusling
Practical advice on how to improve the throughput of your agile team, by using the Theory of Constraints and Queuing Theory. Shows how to apply TOC to your task board. Explains how Queuing Theory is built into Scrum and Kanban, powering you to make the most of them.
The Theory of Constraints is a methodology for identifying the most important limiting factor (i.e. constraint) that stands in the way of achieving a goal and then systematically improving that constraint until it is no longer the limiting factor.
Theory Of Constraints - Agile Tour 2013 Craig Strong & Daryn Holmesstrongandagile.co.uk
These slides are from the presentation at http://www.agiletourlondon.co.uk 1/11/2013. They are based on simulated results using a basic Kanban workflow. The goal of the presentation was to explain the Theory Of Constraints by example and show how this can be applied to make effective changes and
to provoke thinking about the wider system we work within
Power point presentation on Theory of Constraints by students of Symbiosis Institute of Operations Management (SIOM), to give you insights to find out bottlenecks and continuous improvements of the process.
Bottleneck Analysis Theory Of Constraints (TOC)Self-employed
The theory of constraints (TOC) is an overall management philosophy introduced by Eliyahu M. Goldratt in his 1984 book titled The Goal, that is geared to help organizations continually achieve their goals. Goldratt adopted the concept with his book Critical Chain, published 1997. The concept was extended to TOC with respectively titled publication in 1999.
An earlier propagator of the concept was Wolfgang Mewes in Germany with publications on power-oriented management theory (Machtorientierte Führungstheorie, 1963) and following with his Energo-Kybernetic System (EKS, 1971), later renamed Engpasskonzentrierte Strategie as a more advanced theory of bottlenecks. The publications of Wolfgang Mewes are marketed through the FAZ Verlag, publishing house of the German newspaper Frankfurter Allgemeine Zeitung. However, the paradigm Theory of constraints was first used by Goldrat.
Insights into a methodology to detect and remove constraints using the modern way. Also known as bottlenecks in the manufacturing industry. Lightly refers to the Five Focusing Steps in E. M. Goldratt's, The Goal.
Using Theory of Constraints in ServicesBusiness901
The Business901 Podcast Transcription features John Arthur Ricketts, a distinguished engineer at IBM Corporate Headquarters. As a consulting partner and technical executive, he has dealt with many services management issues, including those faced by clients in their own services businesses. His work in applied analytics led him to become a focal point on Theory of Constraints (TOC), and then to delve deeply into its potential for services management.
John is very informative with a practical approach to applying TOC to services. I believe anyone involved in continuous improvement field will benefit from this podcast.
Theory of constraints was developed by Eli Goldratt 1984.
He based this management theory that every system has at least one constraint limiting it from getting more of what it strives for.
Theory of Constraints (TOC) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt in his 1984 book titled The Goal, that is geared to help organizations continually achieve their goal.[1] The title comes from the contention that any manageable system is limited in achieving more of its goal by a very small number of constraints, and that there is always at least one constraint. The TOC process seeks to identify the constraint and restructure the rest of the organization around it, through the use of the Five Focusing Steps.
- Source: Wikipedia
Theory Of Constraints - Agile Tour 2013 Craig Strong & Daryn Holmesstrongandagile.co.uk
These slides are from the presentation at http://www.agiletourlondon.co.uk 1/11/2013. They are based on simulated results using a basic Kanban workflow. The goal of the presentation was to explain the Theory Of Constraints by example and show how this can be applied to make effective changes and
to provoke thinking about the wider system we work within
Power point presentation on Theory of Constraints by students of Symbiosis Institute of Operations Management (SIOM), to give you insights to find out bottlenecks and continuous improvements of the process.
Bottleneck Analysis Theory Of Constraints (TOC)Self-employed
The theory of constraints (TOC) is an overall management philosophy introduced by Eliyahu M. Goldratt in his 1984 book titled The Goal, that is geared to help organizations continually achieve their goals. Goldratt adopted the concept with his book Critical Chain, published 1997. The concept was extended to TOC with respectively titled publication in 1999.
An earlier propagator of the concept was Wolfgang Mewes in Germany with publications on power-oriented management theory (Machtorientierte Führungstheorie, 1963) and following with his Energo-Kybernetic System (EKS, 1971), later renamed Engpasskonzentrierte Strategie as a more advanced theory of bottlenecks. The publications of Wolfgang Mewes are marketed through the FAZ Verlag, publishing house of the German newspaper Frankfurter Allgemeine Zeitung. However, the paradigm Theory of constraints was first used by Goldrat.
Insights into a methodology to detect and remove constraints using the modern way. Also known as bottlenecks in the manufacturing industry. Lightly refers to the Five Focusing Steps in E. M. Goldratt's, The Goal.
Using Theory of Constraints in ServicesBusiness901
The Business901 Podcast Transcription features John Arthur Ricketts, a distinguished engineer at IBM Corporate Headquarters. As a consulting partner and technical executive, he has dealt with many services management issues, including those faced by clients in their own services businesses. His work in applied analytics led him to become a focal point on Theory of Constraints (TOC), and then to delve deeply into its potential for services management.
John is very informative with a practical approach to applying TOC to services. I believe anyone involved in continuous improvement field will benefit from this podcast.
Theory of constraints was developed by Eli Goldratt 1984.
He based this management theory that every system has at least one constraint limiting it from getting more of what it strives for.
Theory of Constraints (TOC) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt in his 1984 book titled The Goal, that is geared to help organizations continually achieve their goal.[1] The title comes from the contention that any manageable system is limited in achieving more of its goal by a very small number of constraints, and that there is always at least one constraint. The TOC process seeks to identify the constraint and restructure the rest of the organization around it, through the use of the Five Focusing Steps.
- Source: Wikipedia
This is a 40 slide "Point Of View" that explains what "TLS" is. It describes each of the elements and briefly presents the integration / combination of the 3 different approaches (Theory Of Constraints + Lean + Six Sigma).
World Class organizations capture workload distribution across multiple project and programs to identify capacity gaps and review the most efficient process for managing capacity. During this webinar I will discuss how to:
• Create a pull resource planning process
• Develop a systematic capacity process
• Implemented a principles resource center decision framework
To learn more: http://developingaculturethatworks.com/
well,
This presentation gives very breif insight into SAP basics for noobs or dummies as i may call them (like me)
nevertheless i presume this is not an elegant presentation ....
Production Planning for Management Consultants & Business AnalystsAsen Gyczew
A practical guide on how to do analyses during consulting projects
What is the aim of this presentation?
Consulting firms are hired very often to help with Supply Chain and Production. During such projects, you will quite often have to look at the production planning and optimize it. Optimizing production planning will require a good understanding of what drives production capacity, as well as how production can impact the costs in the whole supply chain. In this presentation, I will teach how to perform fast and efficiently different types of analyses related to production planning.
In the presentation you will learn the following things:
1. What the production capacity depends on and how to estimate it
2. How to find optimal production batches for different products in Excel that will minimize costs in the whole supply chain
3. How to plan production capacity for the future
4. How and when to use different methods for production planning
This presentation is based on my 15 years of experience as a consultant in top consulting firms and as a Board Member responsible for strategy, performance improvement, and turn-arounds in the biggest firms from Retail, FMCG, SMG, B2B, and services sectors that I worked for. I have carried or supervised over 90 different performance improvement projects in different industries that generated in total 2 billion of additional EBITDA.
For more check the following course: https://bit.ly/ProductionPlanningAsen
5 Steps to Getting Organizational Buy-In for Your Enterprise Software ProjectJeff Carr
When looking for a new enterprise software system, your organization must begin your journey by making a business case for enterprise software. This involves numerous steps, including determining an expected return on investment, anticipating total costs, and fully documenting the business case for investing in a new or upgraded system.
Find out how manufacturing and distribution companies can drive an effective justification process with this presentation deck.
Explore five critical areas needed to justify one of the most complex and resource-intensive initiatives your company will face:
- Assess your internal environment
- Fully document your current state
- Clearly map your future state
- Get a handle on total costs of upgrade or new enterprise system
- Accurately calculate ROI
SIPOC Model PowerPoint Presentation SlidesSlideTeam
This complete deck covers various topics and highlights important concepts. It has PPT slides which cater to your business needs. This complete deck presentation emphasizes Sipoc Model Powerpoint Presentation Slides and has templates with professional background images and relevant content. This deck consists of total of seventeen slides. Our designers have created customizable templates, keeping your convenience in mind. You can edit the colour, text and font size with ease. Not just this, you can also add or delete the content if needed. Get access to this fully editable complete presentation by clicking the download button below. http://bit.ly/2Orhs0v
Part IRequirement 1UnitsPriceTotalsSales60,000$12.50$750,000Variab.docxherbertwilson5999
Part IRequirement 1UnitsPriceTotalsSales60,000$12.50$750,000Variable Costs60,000$6.00$360,000.00Fixed Costs60,000$295,525$295,525.00Net Income$94,475.00Requirement 2Contribution Margin per Unit in Dollars = Selling Price – Variable CostsSelling PriceVariable Costs Contribution Margin per Unit $12.50$6.00$6.50Contribution Margin Ratio = Contribution Margin/Selling PriceContribution MarginSelling PriceContribution Margin Ratio$6.50$12.5052%Requirement 3Break-Even Point = Fixed Costs / Contribution MarginFixed Costs Contribution MarginBreak-Even Point in Units (Rounded)$295,52552%568,317Break-Even Point in Units X Selling Price per Unit = Break-Even Point SalesBreak-Even Point in UnitsSelling Price per UnitBreak-Even Point in Sales (Rounded)568,317$12.50$45,465Requirement 4AMargin of Safety in Units = Current Unit Sales – Break-Even Point in Unit SalesCurrent Unit SalesBreak-Even Point in SalesMargin of Safety in Units60,000$45,46514,535Requirement 4BMargin of Safety in Dollars = Current Sales in Dollars – Break-Even Point Sales in DollarsCurrent Sales in DollarsBreak-Even Point in Dollars Margin of Safety in Dollars$750,000$568, 312.50$181,688Requirement 4CMargin of Safety as a Percentage = Margin of Sales in Units / Current Unit SalesMargin of Safety in UnitsCurrent Unit SalesMargin of Safety Percentage14,53560,00024%Requirement 5Degree of Operating Leverage = Contribution Margin / Operating IncomeContribution MarginOperating IncomeOperating Leverage$655,525.00$750,000.000.8740Requirement 6Units$ Per UnitTotalsSales72,000$12.50$900,000Variable Costs72,000$6.00$432,000.00Fixed Costs72,000295,525$295,525.00Net Income$172,475.00Operating LeverageTimes % IncreaseIncrease would be XX%0.87445.2245.22Prior Income$94,475.00From Part 1Increase$78,000.00Prior Income X XX% AboveTotal$172,475.00Requirement 7Targeted Income = (Fixed Costs + Target Income) / Contribution MarginFixed Costs + Target IncomeDivided by Contribution Margin# of Units (Rounded)Fixed Costs$295,525Target Income$78,000Total$373,525$655,525.001# of Units Above X $ Per UnitProofRevenueXX,XXX X $XX.XX$78,000Variable CostsXX,XXX X $X.XX$432,000Contribution Margin$655,525Fixed Costs$295,525Net Income$360,000Requirement 8Sales MixCurrentSpecialtyTotalExpected Sales UnitsRevenue = Sales X Price$750,000$900,000$1,650,000Variable Costs X Units$360,000$432,000$792,000Contribution Margin$655,525$655,525$1,311,050Fixed Costs$295,525$295,525$591,050Operating Income$539,900Prior Net Income From Requirement 1$461,900.00Additional Operating Income(Operating Income Above Less Prior Income)$166,375.00Decision With ExplanationThe company needs to produce more of the umbrellas so as to increase the volume of sales that it will record in the market. Consequently, the profits realized by the firm will also increase. However, there is need for the costs of production to be reduced so as to increase the net revenue of the company.
Part IIRequirement 1Hampshire CompanyVariable Costing Income Statemen.
Decision Making with Excel for ManagersAsen Gyczew
As a manager you will be tempted to trust your guts and use your experience to decide what and how to do it. Quite often this approach may be misleading. It is much better to use data driven approach and before you make the decision look at the potential consequences. In this course I will show you how to make more rational choices as a manger using Excel. We will go through a lot of case studies that will help you master this skill.
In the course you will learn the following things:
1. How to be data driven in solving problems
2. How to make better decisions using Excel
3. How to handle uncertainty when you are making decisions
4. Which method, framework you should use in a specific situation
You will learn how to make decisions using make or buy analysis, voting system, simulations, rankings, how to analyze the costs of different investments (aiming at cost reduction, removing bottlenecks, requested by the customers). We will also how to apply the portfolio decision making, value proposition alignment, strategic alignment frameworks.
For more check my course: https://bit.ly/DecisionMakingExcel
9. Ship 14 Knives in 4 Days The Game Each round represents a day’s work Roll the dice to see what you produced Each operation is dependent on the upstream operation for input Play for 4 days Why 14? The average roll of a dice is 3.5 * 4 = 14
10. The limits of my language are the limits of my mind. Speechifying
22. The 3 Global Measures Throughput - Money flowing In Rate at which a system generates money through sales (not through production).
23. The 3 Global Measures Throughput - Money flowing In Rate at which a system generates money through sales (not through production). Inventory - Money inside company Product inventories are liabilities, not assets. Liability: Something that frustrates achievement of the goal.
24. The 3 Global Measures Throughput - Money flowing In Rate at which a system generates money through sales (not through production). Inventory - Money inside company Product inventories are liabilities, not assets. Liability: Something that frustrates achievement of the goal. Operating Cost - Money flowing Out All the money a system spends in turning inventory into throughput (e.g. Managers)
29. Increasing Profit TOC’s order of importance Increase Throughput Decrease Assets (including inventory) Avoid Throughput and Operating expense Decrease Operating Expense Avoid Throughput and Assets Traditional Model puts this in #1 slot “Cost Center Disease”
30. Exploiting Constraints Examples throughput Reduce set-up time Relieve workers so there is no idle time at the CCR Sub-contract or outsource bottleneck resource Add capacity to the constraint
31. Exploiting Constraints Examples throughput Reduce set-up time Relieve workers so there is no idle time at the CCR Sub-contract or outsource bottleneck resource Add capacity to the constraint
32. Exploiting Constraints Examples throughput Reduce set-up time Relieve workers so there is no idle time at the CCR Sub-contract or outsource bottleneck resource Add capacity to the constraint
33. Exploiting Constraints Examples throughput Reduce set-up time Relieve workers so there is no idle time at the CCR Sub-contract or outsource bottleneck resource Add capacity to the constraint
34. Tell me how you will measure me and I will tell you how I will behave. Why?
35. Traditional Theory of Constraints Inventory = Profit Overproduction Busy = Efficient Operational Costs #1 Sub-system optimization Cost Center Disease Inventory = Profit Sell inventory Extra work discouraged Throughput #1 Systemic optimization Continuous Improvement Implications
36. via Karl J Scotland http://availagility.co.uk/2010/07/16/the-flow-experiment/ The Flow Game
37. Drum – Buffer – Rope Drum The CCR (Capacity Constrained Resource). Purpose: Its production rate sets the production rate for the entire plant, downstream & upstream. Buffer Placed in front of the drum (upstream) to keep it busy for a specified time. Purpose: No throughput disruption. Rope Actions taken to tie the rate at which material is released into the plant (at the first operation) to the production rate of the drum (CCR). Purpose: Ensure WIP inventory doesn’t exceed the level needed for the buffer.
38. TOC JIT Job shop 3 Global Measurements Kanban authorizations Flow based Local, non-financial measurements e.g. cycle time Drum-Buffer-Rope TOC vs. JIT
39. Most Comprehensive Reference Ever Questions to lead your discovery http://maaw.info/TOCquestions.htm Chapter by Chapter summary of The Goal http://maaw.info/ArticleSummaries/ArtSumTheGoal.htm KanBanDev Yahoo Group