3957920
Description
Mind Map by Thomas Felipe Ro, updated more than 1 year ago
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Created by Thomas Felipe Ro
about 9 years ago
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TOC (theory of constraints)
- The theory of constraints (TOC) is a
systems-management philosophy developed by
Eliyahu M. Goldratt in the early 1980s.v
- STATEMENT ON MANAGEMENT ACCOUNTING
- comprehend the underlying principles of TOC
- understand the various elements of TOC
man- agement systems
- design a throughput accounting system
- broaden employee awareness and obtain their
buy-in for TOC management systems
- comprehend the underlying principles of TOC
- PRINCIPAL KEYS FOR UNDERLYING TOC
- Processes/organizations as chains
- the weakest links can be found and strengthened
- the weakest links can be found and strengthened
- Cause and effect
- All systems operate in an environment of cause and effect
- All systems operate in an environment of cause and effect
- Processes/organizations as chains
- TOC management systems
- Logistics/scheduling.
- Performance measurement.
- Built around the core metrics of throughput, inventory, and operating expense
- Built around the core metrics of throughput, inventory, and operating expense
- Problem-solving/thinking process.
- Project management.
- TOC’s critical chain concept removes the implicit
assumption of infinite capacity from the project
management domain
- TOC’s critical chain concept removes the implicit
assumption of infinite capacity from the project
management domain
- Market segmentation
- TOC offers important insights to all managers, and
especially to cost managers, in the areas of product mix and
prod- uct pricing decisions
- TOC offers important insights to all managers, and
especially to cost managers, in the areas of product mix and
prod- uct pricing decisions
- Logistics/scheduling.
- USES AND BENEFITS
- decreased production lead times
- improved quality of products and services
- dramatic increases in profitability
- reduced inventory levels
- reduced bottlenecks
- facilitation of strategic marketing and
opera- tional decisions
- application of continuous improvement at the supply
chain level
- decreased production lead times
- The Five-Step Focusing Process
- Step 1. Identify the system’s constraints.
- Step 2. Decide how to exploit the constraint
- Step 3. Subordinate everything else to the above decisions
- Step 4. Elevate the constraint(s). Add capacity or otherwise change the status of the original
resources
- G Step 5. Return to step 1. Don’t let inertia become the new constraint
- Step 1. Identify the system’s constraints.
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