E3, Ch 22S: Theory of Constraints Flashcards
theory of constraints
management methodology that identifying and improving the significant limiting factors in a system/process
eli goldratt
coined ToC; high demand for his expertise
goldratt’s rules of production scheduling (3)
- balancing capacity =/= balancing flow (meaning, we can give each machine the same amount of capacity but the flow of that system may not always match)
- an hour lost at bottleneck is an hour lost for the entire system
- bottlenecks govern throughput and inventory
_____________ are the most limiting constraints on a system
bottlenecks
biggest risk in major investment in technology
assumption that more investment = higher quality
goldratt’s steps in implementing ToC (5)
- identify system constraints
- decide how to exploit constraints
- subordinate everything else to that decision
- elevate system constraints
- go back to Step 1 but do not let inertia become system constraint
what is meant by not letting inertia become a system constraint?
don’t relax once you solve one problem
constraint
where is the limitation (not the excess)
demand constraint
when supply is high and no one is buying
supply constraint
when demand is high but there is limitation on supply
process/system/throughput constraint
limiting a system/point in the production process
process bottleneck
flow of work is slowed down due to limited capacity (inability to meet demand)
regulatory bottleneck
caused by govt regulations/company policy
ex. safety codes, work hours (OSHA)
technology bottleneck
ex. software/computer crashing out, like class on Friday 11/8
labor bottleneck
lack of talent/employees
