The Theory of Constraints (TOC) is a management philosophy that views an organization as being limited in achieving more of its goals by a very small number of constraints. The core of TOC is that an organization must first identify its constraints, then exploit, subordinate everything else to, elevate, and repeat this process for the next constraint. This involves using buffers, focusing on throughput, operating expenses, and inventory, and making sure constrained resources are never idle and prioritized over non-constrained resources. A real example demonstrated how a medical products plant actively managed constraints by adding capacity or shifting focus to the next constraint.

1. Theory of Constraints Presented By Upma Joshi Mohd.Arish

6. Operating expense

8. Constraints A constraint is anything that prevents the system from achieving more of its goal. There are many ways that constraints can show up, but a core principle within TOC is that there are not tens or hundreds of constraints. There is at least one and at most a few in any given system. Constraints can be internal or external to the system.

9. Types of Constraints:

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

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

17. 1. Identify And How To Exploit The System Constraint 2. Subordinate The Constraint 3. Elevate The System Constraint

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

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

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

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

30. Multiple-time Buffers…

31. PLANT TYPES T Plant

33. Finance and accounting

34. Project management