2017 3rd International Conference on Social, Education and Management Engineering (SEME 2017)

ISBN: 978-1-60595-515-5

Application of the Theory of Constraints for Continuous

Improvement of a Production Process-Case Study
Radosław WOLNIAK1,*, Bożena SKOTNICKA-ZASADZIEŃ2
and Michał ZASADZIEŃ3
1
Institute of Production Engineering, Silesian University of Technology, ul. Roosevelta 26,
41-800 Zabrze, Poland
2
Institute of Production Engineering, Silesian University of Technology, ul. Roosevelta 26,
41-800 Zabrze, Poland
3
Institute of Production Engineering, Silesian University of Technology, ul. Roosevelta 26,
41-800 Zabrze, Poland
*Corresponding author

Keywords: Theory of constraint, Improvement, Quality management, Production process, Quality

tools.

Abstract. The paper presents the example of practical application of theory of constraints. We use
this conception to improve production process in the case of company producing electrical equipment
for the mining industry. During the observation and on the basis of the ERP system used in the
company as well as process mapping, the area in which the so called “bottleneck” problems are
present was determined according to the theory of constraints. Analysis of the “bottleneck” using
theory of constraints was carried out in the Paint Shop department, as this is the department where the
biggest financial losses are generated and the entire painting process inefficient. The aim of the paper
is to analyze of the “bottleneck” using theory of constraints in the production industry to improve the
process.

Introduction
The Theory of Constraints (TOC) is an approach concerning the capacity of manufacturing process
limitation by its capacity-constraining resources. TOC can be used in manufacturing and service
companies as well as in several managerial areas, such as: project management, quality management,
information systems. The theory is especially widespread in production planning. In this case it is
used as a new approach suitable for managing operations according to the pull system (for example
when particular company is used just in time conception). TOC operates according to the well-known
idiom “a chain is no stronger than its weakest link” [1, 2, 3, 4, 5, 6, 7].
The aim of the paper is to analyze of the “bottleneck” using theory of constraints in the production
industry to improve the process.

Theory of Constraints
TOC was first described by E. M. Goldratt and Cox [8] and called a “Theory of production”. In the
next years TOC was described in Goldratt’s new books where he used the name “Theory of
constraints” [9, 10, 11]. Some authors refer to TOC as a “method” of management while some call it
a “management philosophy”. It can be defined as a management approach based the process of
continuous improvement made up of seven steps. The main purpose of this approach is to identify
constraints in the overall process and overcome them. TOC is based on the observation that every
company must have a constraint, otherwise it could be producing an infinite stream of profits. The
underlying principle of the theory of constraints is that the whole organization can be measured and

169
controlled by variations on the particular measures. There are various conceptions of use of this
method; for example, it can be used as [12]:
• a method for production planning and control in manufacturing companies,
• a method of implementation in service and non-profit organizations,
• application in several management areas, such as purchasing, quality and information system
management,
• method for project scheduling under resource constraints.
From the viewpoint of this article the most interesting usage of the method is the industrial
engineering approach [13, 14, 15, 16, 17]. We can distinguish many types of constraints, for example
[2, 11, 18, 19, 20, 21, 22]:
• bottlenecks in the production line,
• problems with delivery to customers,
• stocks across the supply chain,
• problems with operations in the production process,
• cycle times,
• cultural problems between team members.
Organization as a whole can be viewed as a dynamic system undergoing periodical transformation
as it seeks to thrive by adapting to the changes in its environment. In this case managers need to be
continuously monitoring their performance and seeking to develop and implement positive changes in
the production process. This managerial effort requires capability to [8, 11]:
• measure, assess and analyse the current situation relative to specified goals,
• create action plans that are designed to eliminate the core problem,
• successfully manage the implementation of systemic changes in the production process to
improve its performance.
Table 1. Examples of industrial applications of TOC.
Situation / Problem How to solve the problem
Availability in Supply Distribution Reliable Rapid Replenishment
Availability in Finished Goods Simplified Drum-Buffer-Rope for make-to-stock of
make-to-availability
On-Time Production Simplified Drum-Buffer-Rope for make-to-order
On-Time Assembly Full Kit
On-time Projects Critical-Chain Project Management
Turnaround of Sick Units Evaporating Cash Constraint
Increasing Customer Demand Un-Desirable Effect
Reducing Demand Risk Customer Segmentation
Causing Change 6 Layers of Resistance/Buy-In
Sound Financial Decision-Making Operational measurements
Project Management Critical-Chain Project Management
Marketing and Sales Mafia Offer, Segmentation
Distribution, Retail and Supply Chain Replenishment
Source: On the basis of: [2, 8, 11]
The use of Goldratt’s TOC in an industrial company could help to analyse the production process
and constraints within it [2, 11, 23]. To assume the goal of the TOC in industry the entire system
should be articulated and measured in the five steps [8, 11, 24]:
• identify the system constraints,
• decide how to exploit the system constraints,
• subordinate everything else to the above decisions,
• elevate the system’s constraints,
• if in the previous steps a constraint has been broken, go back to the first step of the process.
Constraints in the production process restrict the output whether we acknowledge them or not.
When the constraints are properly identified and managed, they can provide a direct and fast route to

170
significant improvement of the whole system and be used as a basis for continuous improvement and
performance growth of the whole system. In Table 1 there are examples of applicability of the TOC in
some industry situations.

Analysis of the Research Problem

The subject of research is a company producing electrical equipment for the mining industry,
belonging to an international consortium uniting companies from Poland, Germany, the Russian
Federation, the Czech Republic, China and South Africa. Products offered by the company are:
electric equipment of the dust-proof casing, services connected with the production of electric
equipment, air conditioning systems for underground mining facilities. Five key areas of production
are present in the company, i.e.: warehouse and material intake, paint shop, assembly, testing station
and final product warehouse. The subject of research are the “bottleneck areas present in the
company.” During the observation and on the basis of the ERP system used in the company as well as
process mapping, the area in which the so called “bottleneck” problems are present was determined
according to the theory of constraints. Analysis of the “bottleneck” using theory of constraints was
carried out in the Paint Shop department, as this is the department where the biggest financial losses
are generated and the entire painting process inefficient.
In the Paint Shop department, focus was put on two aspects of implementing the theory constraints.
First was developing a new way of organising work within the paint shop, which has been shown in
Table 2.
Table 2. Change in the paint shop working hours.
Before implementation After implementation Duration
2nd Shift 22:00-06:00 2nd shift 18:00-02:00 8 hours
Break between shifts 02:00-06:00, possibility of
Lack of a break between shifts overtime when problems occur, drying the device after 4 hours
completion of work by the painter
1st shift 06:00-14:00 1st shift 06:00-14:00 8 hours
Lack of drying after
Drying the devices after completion of work by the
completion of work by the 4 hours
painter 14:00-18:00
painter

The changes in the work of the paint shop concern only the 2nd shift. By introducing an additional
4-hour break between the shifts as well as additional drying after the 2nd shift, the company has seen
a significant increase in efficiency. With the assumption that one drying cycle during each shift lasts
1.5 hours we get an increase in efficiency of about 19% for one shift. There is also a possibility of
flexibly reacting to the problems occurring in the production process in form of overtime. It is a real
possibility, then, that the paint ship department could work for 24 hours a day, which would allow to
fully utilise the painting booth. The second change implemented pertains to improvements to the
painting process and more specifically to its duration. The validity of double-painting the devices was
put into question, i.e. painting them with molykote and foundation in the first stage, followed by
assembly of the device and returning it to the paint shop for final painting. Additionally, painting the
devices with different colours on the inside and outside if not required by the standard or the client
was also questioned. Table 3 presents the painting process. Points 4, 5 and 6 of the painting process
were subjected to improvements.
Analysis of the painting process has shown that the prolonged painting time is connected with
double painting the device as well as the use of two different colours for the internal and external parts
of the device. Optimisation of the painting process is a result of synergy of two improvements. The
first one is final painting of the device during its first stay in the paint shop.

171
 Table 3. Painting process before implementing the theory of constraints.

Main tasks of the painting process according to the sequence of Before

No.
execution Duration [h] % share
1. Disassembly of elements and degreasing of the device 2 13
2. Sanding, degreasing and covering of the surface 1 6
3. Painting with molykote, drying in the booth 1.5 10
4. Covering before painting 3 19
5. Painting with foundation, painting with white paint 2 13
6. Drying in the painting booth 1.5 10
7. Covering, painting yellow 3 19
8. Drying in the painting booth 1.5 10
Total 15.5 100%
The painting process was designed in such a way as to maximise the availability of the painting
booth and thus eliminate the “bottleneck”, as shown in Table 4. The amount of time needed for
conducting the entire painting process decreased significantly. The difference is about 5 hours, which
translates into a reduction of about 35%.
Table 4. Painting process after implementing the theory of constraints.
After
No. Main tasks of the painting process according to the sequence of execution
Duration [h] % share
1. Disassembly of elements and degreasing of the device 2 20
2. Sanding, degreasing and covering of the surface 1 10
3. Painting with molykote and foundation, drying in the booth 2.5 25
4. Covering, painting yellow 3 30
5. Drying in the painting booth 1.5 15
Total 10 100%

Conclusion
Applying the theory of constraints in the production process analysed allowed for eliminating the
so-called “bottleneck” by shortening the entire painting process from eight to seven steps. The
duration time also decreased from 1145 to 1051 minutes. Shortening of the painting time was also
influenced by going from two painting tasks to one and better planning of the entire process.
Apart from the abovementioned measures taken to shorten the painting process, additional
elements were also implemented to strengthen the “bottleneck” area, such as creating an additional
room within the building of the paint shop equipped with lashing. The painting booth was divided into
independent painting and drying parts. A divider was also installed so that painting in two different
colors is possible. Practical application of the Theory of Constraints confirms the philosophy’s
universal validity on many levels that can bring measurable gains. Thanks to the Method of Five Steps
of Focus, the concept of Theory of Constraints allows for the streamlining of production processes by
identifying constraints and taking measures towards their elimination. Using of the theory of
constraints in Polish production companies allows for eliminating losses incurred during the
manufacturing of products and, consequently, increasing the efficiency of the entire process.

References

[1] M. Alsmadi, A. Almani, Z. Khan, Implementing an integrated ABC and TOC approach to
enhance decision making in a Lean context: A case study. International Journal of Quality &
Reliability Management 8 (2014) 906-920.
[2] A. Banerjee, S.K. Mukhopadhyay, A contemporary TOC innovative thinking process in the
backdrop of leagile supply chain. Journal of Enterprise Information Management 3 (2016) 400-431.

172
[3] V. Belvedere, A. Grando, Implementing a pull system in batch/mix process industry through
Theory of Constraints: A case study, in.: (eds.) Ronen B. The Theory of Constraints. Practice and
Research, Washington, DC: IOS Press, 2005.
[4] J. Cox, J. Schleier, Theory of Constraints. Handbook, New York, NY: McGraw Hill Professional,
2010.
[5] H.W. Dettmer, Goldratt's Theory of Constraints: A Systems Approach to Continuous
Inmrovement, Milwaukee, WI: ASQ Quality Press, 1999.
[6] E.M. Goldratt, Theory of Constraints/Lean/Six Sigma Integration, New York, NY: McGraw Hill
Professional, 2010.
[7] E.M. Goldratt, Critical chain, North River Press, USA, 1997.
[8] E.M. Goldratt, J. Cox, The Goal: A Process of Ongoing Improvement, New York, NY: North
River Press, 2014.
[9] E.M. Goldratt, It’s not luck, London, England: Routledge, 2012.
[10] T. Hirts, P. Guernaccini, Toward a Model of Performance Measurement of Output Based on the
Theory of Constraints. Studies in Managerial and Financial Accounting 25 (2012) 117-137.
[11] W.A. Lewinson, Beyond the theory of constrain. How to eliminate variation and maximize
capacity, New York, NY: Productivity Press, 2007.
[12] T.P. Librelato, D.P. Lacerda, L.H. Rodrigues, D.R. Veit, A constraint is anything that prevents
the system from achieving its goals. Business Process Management Journal 6 (2014) 922-949.
[13] J. Małek, Wykorzystanie teorii ograniczeń do zarządzania „wąskimi gardłami” na przykładzie
wybranego przedsiębiorstwa produkcyjnego, praca magisterska, Zabrze, 2017.
[14] A. Męczyńska, R. Kmieciak, A. Michna, I. Flajszok, A decision support method for poorly
structured problems in school management. Baltic Journal of Management 1 (2013) 91-112, doi:
10.1108/BJM-04-2013-0058.
[15] D. Oglethrope, G. Heron, Testing the theory of constraints in UK local food supply chains.
International Journal of Operations & Production Management 10 (2013) 1346-1367.
[16] T.L. Pereira, D.L. Pacheco, L.R. Henrique, D.V. Rafael, A process improvement approach based
on the Value Stream Mapping and the Theory of Constraints Thinking Process. Business Process
Management Journal 6 (2014) 922-949.
[17] A. Ray, B. Sarkar, S.K. Sanyal, An improved theory of constraints, International Journal of
Accounting & Information Management 16 (2008) 155-165.
[18] T.E. Shoemaker, R.A. Reid, Applying the TOC Thinking Process: A case study in the
government sector, in.: (eds.) Ronen B. The Theory of Constraints. Practice and Research,
Washington DC: IOS Press, 2005.
[19] M. Smith, P. Pretorius, Applying the theory of constraints to increase economic value added:
Part 1—theory. South African Journal of Industrial Engineering 1, (2012) 69-80.
[20] M. Smith, P. Pretorius, Applying the theory of constraints to increase economic value added:
Part 2—implementation. South African Journal of Industrial Engineering 2 (2012) 71-80.
[21] M.M. Srinivasan, Building Lean Supply Chains with the Theory of Constraints, New York, NY:
McGraw Hill Professional, 2011.
[22] R. Wolniak, B. Skotnicka-Zasadzień, The use of value stream mapping to introduction of
organizational innovation in industry. Metalurgija 4 (2014) 709-712.
[23] R. Wolniak, The assessment of significance of benefits gained from the improvement of quality
management systems in Polish organizations. Quality & Quantity 1 (2014) 515-528, doi:
10.1007/s11135-011-9534-x.
[24] A. Zivaljevic, Theory of constraints—application in land transportation systems. Management of
Environmental Quality: An International Journal 4 (2015) 505-517.

173