The Theory of Constraints

Fundamental Exam Review

Overview the TOCICO Exams
James R. Holt, Ph.D., PE
Professor
Engineering Management
Washington State University-2010

jholt@wsu.edu
http://www.engrmgt.wsu.edu/
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TOCICO
The Theory of Constraints International

Certification Organization www.TOCICO.org

Certifies TOC Knowledge at
Fundamental Knowledge (Basic understanding of
TOC as it applies to ALL applications. Can Pass
in Segments as your TOC knowledge grows.)
Application Level (Advanced understanding
sufficient to apply and teach others)
Implementer Level (Highest Certification
Individual has proof of successful
Implementations).
Washington State University-2010

TOCICO Certification Areas

The Theory of Constraints International
Certification Organization
Fundamentals
Application areas
Supply Chain Logistics
Project Management
Finance and Measures
Thinking Processes
TOC in Education
Holistic Business Strategy

Washington State University-2010

TOCICO Segmented Fundamentals Exam

Fundamentals Certificate
Multiple Choice Case Study
(Identify, Exploit, Subordinate, Elevate, Go to Step 1)
Fundamentals
Certificate of

TOC
Philosophy
Inherent
Potential
Inherent
Simplicity
Inherent WinWin
Five Focusing
Steps
Three

Fundament
als
Certificate
of
TOC

Thinking
Processes
Conflict
Cloud
Negative
Branch
Ambitious
Target

Fundamentals
Certificate of

Fundamentals
Certificate of

TOC
Applications

TOC Finance
& Measures

DBR
Project
Management

T, I, OE
PQ Type
Problem

Replenishme
nt

Washington State University-2010

TOCICO Certification Exams

Certification Steps
1.
Fundamental Exams
TOC Philosophy
Thinking Process
TOC Measures
Applications (one of):
Drum-Buffer-Rope
Project Management
Distribution

F
U
N
D
A
M
E
N
T
A
L

2,
Applications Exams

3.
Implementation Cases

Supply Chain Logistics

Supply Chain Logistics

Project Management

Project Management

Finance and Measures

Finance and Measures

Thinking Process

Thinking Process
Business Strategy

E
X
A
M

Fast Track Certification Process

for TOC Experts

Validated Application Case

Exams Available
Worldwide On Demand (FE Soon On-Line)
Washington State University-2010

TOCICO Application Exams

Applications Level Exams
Supply Chain Logistics
Project Management
Finance and Measures
Thinking Process
TOC in Education

Implementation Level Case Submissions

Complete (beginning to end) documentation of
implemented case (with verification)
Washington State University-2010

TOC Improvement Approach

1.
2.
3.
4.
5.

Improve the Flow in Operations (and Service

Areas):
Build a Decisive Competitive Edge
Capitalize on the Competitive Edge
Elevate Capacity only when needed
Institutionalize the Process
When Formal Organization becomes the
Informal
Remove Engines of Disharmony

Washington State University-2010

Flow Focus for Applications

Exams

Plan

Application
Exam
Execu
te

Establi Establi
sh
sh
Releas Buffer(
e
s)
Step 1
Control

Improv
e

Single Active Applied POOGI

Priority Buffer Buffer Processes
System Mgmt Analysi
s
Step 2
Washington State University-2010

Step 3
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Fundamentals Exam
Includes Key Topics about:
Theory of Constraints Philosophy
TOC Thinking Process Basics
TOC Applications (at least one area)
Operations (Drum-Buffer-Rope)
Project Management (CCPM)
Distribution (Replenishment)

TOC Finance and Measures

TOC Business Strategy (Holistic View)

These sub topics with study and practice prepare

for the Fundamentals Exam Certification
Washington State University-2010

Topics in TOC Philosophy

Concept of the Weak Link in the Chain

Five Focusing Steps
All conflicts have a solution
Solutions are often counter intuitive
Systems are simple
There is a Core Problem
People are good
Everything is harmonious
Every one can improve
Growth and Stability can both be achieved at
the same time (Ever flourishing)
Washington State University-2010

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Topics in TOC Thinking Process

Cause and Effect

Evaporating Cloud
Surfacing Assumptions
Invalidating Assumptions
Negative Branch Reservation
Overcoming Obstacles (PRT)
Categories of Legitimate Reservation

Washington State University-2010

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Topics in TOC Operations

Locating Capacity Constrained Resource

Sizing Buffer (50% of existing to start)
Rope Control (release)
Buffer Management
Simplified- DBR (finished goods buffers
controlling release)
Make to Order

Make to Stock

Washington State University-2010

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Topics in TOC Projects

Plan the Network (PRT)

Aggressive Schedule (50% durations)
Strategic Buffers (50% PB & FB)
Daily Reporting
(Time Remaining? What are you awaiting?
How can we help you?)
Fever Chart Concept

Buffer Management

Choke and Release

Sequencing mechanism

Resource alignment

Washington State University-2010

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Topics in TOC Replenishment

Know components of Replenishment time

Understand Plant Warehouse
Understand Inventory Capacities of Plant
Warehouse and Regional Warehouses
Daily Reporting of Sales

Frequent Delivery

Buffer Management Actions

Beneficial Impact of Distribution Solution on

the Plant
Washington State University-2010

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Topics in TOC Finance & Measures

Purpose of Finance (invest in improvements)

Purpose of Measures (keep everyone focusing on the
constraint and subordination)
Decide on Investment decision (make/buy, equipment
purchase)
Impact of poor quality/delivery on system
Impact of poor inventory practices on the system
Financial Buffer Management
T, I, OE, Cash Flow, Profit, Return on
Inventory/Investment
TDD, IDD
Throughput Accounting worksheet
Washington State University-2010

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Topics in TOC Business Strategy

Selecting the Core Problem of the Business
Determining the Direction for the competitive

advantage
Deciding how to control the release
Establishing correct buffers
Determining the single priority system
Active Buffer Management
Analytical Buffer Analysis
POOGI (planned growth and stability of operations
and management)
Washington State University-2010

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