TOC (Theory of Constraints) Theory of constraints
Theory of constraints. The synonym (more precisely, the forerunner of TOC) is OPT (Optimized Production Tehnology). According to TOC, any enterprise has a purpose(s). Factors which limit possibilities of the enterprise in achievement of its purposes - are called restrictions. In relation to production management and stocks it is possible to select three types of restrictions. It, as a rule, restrictions on internal resources (insufficient equipment capacity, absence of personnel of necessary qualification, etc.), market restrictions (the excess market) and restrictions in business methods (business processes and procedures of management).
In this context, system management with existence of restrictions is implemented through the following five steps:
- Reveal (to identify) restriction ("bottleneck" or a critical resource of a system);
- Define methods of the most effective use of a bottleneck;
- Do everything possible in order that "bottleneck" was used most effectively and optimum;
- Increase capacity narrow (i.e. to eliminate it, can bt due to attraction of additional resources.
- Return on a step 1, i.e. not allow inertia (the old methods of management developed on steps 2 and 3) to turn into new restriction.
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