Introduction to the Theory of Constraints

Question 1

What is the theory of constraints (TOC)?

Answer 1

Is a system improvement philosphy.

Question 2

Who developed the Theory Of Constraints (TOC)?

Answer 2

Dr. Eliyahu M. Goldratt

Question 3

What are the two types of Throughput?

Answer 3

1) Profit: Money generated through sales
2) Non profit: Better serving the customers at less cost.

Question 4

What are the 3 ways for a company to make money?

Answer 4

1) Reduce Operating Expenses - by eliminating waste in the operation.
2) Reduce inventory - to better utilize machines and equipment.
3) Increase Throughput - in order to be more profitable or better serve the customer.

Question 5

What is TOC?

Answer 5

A system based improvement philosophy. It asserts that constraints determines performance. Managing from the constraint provides the focus and leverage to maximize system performance. Eliminating systemic constraints is the focus of TOC.

Question 6

What are the two types of constraints that can occur in any organization or process flow?

Answer 6

1) non-physical
2) physical

Question 7

What are examples of non-physical constraints?

Answer 7

Training, measurements, rules, policies.

Question 8

What are examples of physical constraints?

Answer 8

people ,materials, equipment, geography

Question 9

What types of constraints are more difficult to deal with?

Answer 9

Non-physical constraints, because most people have trouble identifying and improving ineffective or inefficient policies. Many policies cover several departments or organizations. Responsibility for changing policies often lies outside their domain.

Question 10

What is TOC about?

Answer 10

Change

Question 11

Applying TOC Principles and tools answers:

Answer 11

1. What to change.
2. What to change to.
3. How to cause the change.

Question 12

What is the name of the steps associated with TOC by the book The Goal by Eliyahu M. Goldratt?

Answer 12

Five Focusing Steps of TOC (Physical Constraints)

Question 13

What are a set of six tools and techniques for a logic based analysis called?

Answer 13

TOC Thinking Process (Policy Constraints).

Question 14

What are the Five Focusing Steps of TOC (Physical Constraints)?

Answer 14

1. Identify the current Constraint.
2. Exploit: Make improvements with existing resources.
3. Subordinate: Align other activities to constraint.
4. Elevate: Take additional actions to break constraint as needed.
5. Repeat: for the next constraint.

Question 15

What is the first step of the Five Focusing Steps of TOC?

Answer 15

Identify the current constraint. This is the single part of the process that limits the process of the system. The bottleneck rate becomes the maximum output for the process.

Question 16

What is the term used for the rate that becomes the maximum output rate of the entire process?

Answer 16

Bottleneck rate

Question 17

What is the condition for a bottleneck?

Answer 17

Its predicted for a given time period ,for a given mix, when demand > supply (e.g., required equipment hours exceeds available hours); or customer needs > performance

Question 18

What are symptoms of a production bottleneck?

Answer 18

1. High Work-In-Process (WIP) Inventory before the operation.
2. High utilization at the operation.
3. Chronic state of high WIP and utilization.

Question 19

What are symptoms of service bottlenecks?

Answer 19

1. Not achieving sales goals.
2. Not producing what customers want.
3. Too slow or poor outside-in positioning and execution.

Question 20

What is the second of the five focusing steps?

Answer 20

Exploit

Question 21

After the constrain has been identified, then you should ______ it without additional investment

Answer 21

Optimize

Question 22

What lean tools are used to improve transportation, reduce defects and waiting time, without adding additional investment in people or equipment?

Answer 22

Visual Management, 6S, Workplace Organization, Establish priority levels, Provide backup approvers.