Thursday, April 09, 2020

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Theory of Constraints (TOC)

What is Theory of Constraints?

Theory of Constraints (TOC) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt in his 1984 book titled The Goal. The fundamental concept of TOC is that any manageable system is limited in achieving more of its goals by a very small number of constraints, and that there is always at least one constraint. Hence the TOC seeks to identify the constraining process and guide ongoing improvement efforts around that process. chain with constraint

Why Hire PMC for TOC?

PMC's has been applying the principles of TOC in its manufacturing, suppy chain, and business process improvement practices for over 30 years. TOC concepts such as constraints, buffers, and pull systems are inherent in PMC's corporate DNA because we have been using simulation and optimization models and queuing for "buffer management" to help our clients visualize, analyze, and optimize their production and service processes.

PMC uses the following five-step TOC process to facilitate the Process of Ongoing Improvement (POOGI) for its clients:

1. Identify the constraint,
2. Maximize the capacity and capability of the constrained process,
3. Align the whole system or organization to support the increasing throughput of the constrained process,
4. Elevate the constraint,
5. When the constraint moves to another process, focus on the new constraint and iterate thru steps 1-4.

Benefits of PMC's TOC Services

  • Increased throughput
  • Reduced cycle time
  • Reduced inventory
  • Optimized buffer management

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Customer Quotes

“The knowledge and skills that PMC applied to this project have helped to solve some of the extremely difficult roadblocks to successful implementation of a Finite Capacity Scheduling system that accurately model the numerous activities under constrained resources.”      
Major Automotive Tier I Supplier, Materials Manager

“I’ve been very pleased with [PMC engineers] level of competency and professionalism and couldn’t have chosen a better team.” 
North America Automotive OEM, Senior Operations Manager

“Your engineering team responded to challenges along the way, and proved to be an excellent source for our [simulation].”      
World leader in Specialty Glass and Ceramics, Senior Process Project Manager

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