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.

1. THEORY OF CONSTRAINTS
Sourabh Joshi
Sriyans Patwa
Sugyan Panda
SIOM | Symbiosis Institute Of Operations Management

2.  Definition
 History
 Assumption
 Steps Involved
 Types of Constraints
 Applications
 Drum Buffer Rope
 Pros & Cons
SIOM | Symbiosis Institute Of Operations Management

3. DEFINITIONS:
 A constraint is anything that prevents the system
from achieving more of its goal.
 The theory of constraints (TOC) is a management
philosophy that views any manageable system as
being limited in achieving more of its goals by a
very small number of Constraints.
SIOM | Symbiosis Institute Of Operations Management

4.  Introduced by Eliyahu M. Goldratt in 1984 in his
book titled The Goal.
 Mr. Goldratt adopted the concept with his
book Critical Chain, published in1997.
 The concept was extended to TOC with
respectively titled publication in 1999.
 Also known as Theory of Bottlenecks.
SIOM | Symbiosis Institute Of Operations Management

5. THEORY OF CONSTRAINTS
Strengthening Your "Weakest Link"
 Significance of bottlenecks
 Speed
 Improvements wasted
SIOM | Symbiosis Institute Of Operations Management

6. ASSUMPTIONS
Organizations can be measured and controlled by
variations on three measures:
1. Throughput
2. Operational expense
3. Inventory
SIOM | Symbiosis Institute Of Operations Management

7. STEPS INVOLVED
 Identify
 Exploit
 Subordinate
 Elevate
 Repeat
SIOM | Symbiosis Institute Of Operations Management

8. Steps involved
SIOM | Symbiosis Institute Of Operations Management

9. TYPES OF CONSTRAINTS:
o External constraints.
 Material
 Market
o Internal constraints.
 Equipment
 People
 Policy
SIOM | Symbiosis Institute Of Operations Management

10. SIOM | Symbiosis Institute Of Operations Management

11. APPLICATIONS IN DIFFERENT AREAS
 Finance & Accounting
 Throughput Accounting
 Throughput = sales – variable cost
 Project Management
 Critical Chain Project Management(CCPM)
 all activities converge to a final deliverable
 Marketing and Sales
 Sales Process Engineering
SIOM | Symbiosis Institute Of Operations Management

12. DRUM-BUFFER-ROPE
SIOM | Symbiosis Institute Of Operations Management

13. CASE STUDY ON OREGON(OFD)
 Problem faced:
 High Inventory
 High lead time
 Make to stock
 Solutions:
 Find out the
constraint
 Limited Freezing
Space
 Exploit the
constraint
 VFD-variable
frequency drives
 Subordinate the
rest of the
organization
 Control the flow
of Cooked/Dry
food
Make to stock +
make to order
SIOM | Symbiosis Institute Of Operations Management

14. PROS 
 Increases in productivity with minimal changes to operations
 Reduce cycle time
 Time from receipt of customer order to shipment
 Optimizes inventory
 Improves communication between departments
 Dramatically reduces the damages caused when the flow of
goods is interrupted by shortages and surpluses.
SIOM | Symbiosis Institute Of Operations Management

15. CONS 
 Variation
 Identification
 Time Frame
SIOM | Symbiosis Institute Of Operations Management

16. REFERENCES:
 Book “The GOAL”
 www.google.com
 en.wikipedia.org
 www.toc.tv
 www.mindtools.com
 www.isixsigma.com
SIOM | Symbiosis Institute Of Operations Management

17. ANY QUERIES??
SIOM | Symbiosis Institute Of Operations Management