Theory of Constraints:

Theory of Constraints (TOC) is an extension of optimized production technology (OPT). According to TOC, a system's output is finding out by its constraints. Eliyahu M. Goldratt introduced the principle of Theory of Constraints (TOC). In his book, The Goal, he (along with his co-author Jeff Cox, 1984) presented it in the appearance of a novel, which is written in a setting of manufacturing environment. The major character of the novel (The Goal) uses the principle outlined as Theory of Constraints (or, TOC) to build a turn-around for his failing industrial plant. The principle of TOC is structured like an embodied approach called as Optimized Production Technology (or, OPT). The manufacturing system, which incorporates TOC/OPT, as synchronous manufacturing. Therefore, TOC, OPT and synchronous manufacturing are associated in some ways. Goldratt has utilized many commonly used terms that carry special meanings in the context of TOC. Terms commonly utilized in this context are: through-put, inventory, drum-buffer-rope system, operating expenses, constraints, goal, etc.

Objectives

After studying this unit, you should be able to

• understand concept used in theory of constraints,
• know about constraints in a manufacturing system,
• explain rules for bottleneck scheduling in TOC, and
• understand synchronous manufacturing.