THEORY OF CONSTRAINTS - Dr Bailey约束理论-贝利博士.pptVIP

* * * * THEORY OF CONSTRAINTS ACCT 7320 October 9, 2013 * What is the “Theory of Constraints” all about? Developed by Eliyahu Goldratt in the mid 1980’s with his business novel The Goal. Has a close relationship with other modern techniques (more about this later): Just-in-Time Manufacturing Resource Planning Quality Management, Six-Sigma Activity-Based Management. * Goldratt’s Biography Born in Israel in the late 1940’s. Bachelor’s degree in Physics. Masters and Doctorate degrees in Philosophy. Founder of a production scheduling software company. Has helped many companies such as: GM, RCA, Kodak, Westinghouse, Philips, etc. Wrote several books: The Goal. The Race. What is this thing called TOC? Critical Chain. * Eliyahu Goldratt’s “The Goal” Brief overview: Midsize company having difficulty shipping products on time. Managed by a plant manager desperate to turn things around. With the help of a Physicist, the plant manager is able to locate the bottleneck and find a solution. Symptoms noted in the book: Obsolete inventory. Low inventory turnover and high amount of inventory in storage. Idle workers or machines. Machine breakdown. A large amount of scrap pieces. A large amount of retooling and rework needed. * What is the “Theory of Constraints” all about? Looks at the entire supply chain and synchronizes the chain to achieve ultimate performance. Based on two assumptions: Every organization has a set of processes working together to achieve a common goal. Every process has a [single] constraint that limits it from higher performance. Typical constraints: Time, Capacity, Materials, Human Resources, Capital Resources, Financial Resources * Implementation of the Theory of Constraints Step 1: Identify the bottleneck(s)/constraint(s). Look at your production plan as a whole and determine which resource is preventing you from achieving better performance. Look at the cause (old machine, untrained employee, long setup times, machine bre