*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Theory of Constraints :/,1,Outline,Introduction to Constraints,Five Steps Of Theory of Constraints,Drum Buffer Rope,Evaporating Cloud Method,The Batch Size Problem,Chain Analogy,Issues with TOC,Measurements&Financial Issues,2,Constraints,Any system can produce only as much as its critically constrained resource,60 units,Per day,70 units,Per day,40 units,Per day,60 units,Per day,Constraint,Maximum Throughput=40 units per day,3,Why Drum Buffer Rope?,A proven method to*:,Reduce Lead times an average of 70%,Reduce inventory an average of 49%,Reduce Operating Expenses,Improve on time delivery performance an average of 44%,Increase Revenue an average of 63%,Better control,DBR delivers ALL of these results AT THE SAME TIME.,*,The World of the Theory of Constraints,by Mabin&Balderstone,St.Lucie Press 2000,4,Issues with TOC,Advantages,Improves capacity decisions in the short-run,Avoids build up of inventory,Aids in process understanding,Avoids local optimization,Improves communication between departments,5,TOC,TQM and JIT,All 3 methods attempt to reduce variation and recognize the interdependencies.,Statistical process control is emphasized in the quality area to help identify ways to reduce variations.,Cells are used to reduce the dependencies,U cell configurations,where one worker is moving with the processed piece from one machine to another,Predetermined schedules,in TOC,reduce both statistical fluctuation and dependent resources.,6,