Theory of Constraints

Lean Manufacturing Series

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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

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Constraints
• Any system can produce only as much as its critically
constrained resource

Constraint

60 units 70 units 40 units 60 units

Per day Per day Per day Per day

Maximum Throughput = 40 units per day

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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

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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.
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