theory of constraints ppt

8/12/2019 Theory of Constraints PPT

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Theory of ConstraintsBy

Eka Darmadi L 3094802May Eka S 3094814

Steven Auryn H - 3105812


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IntroductionWhat is TOC ?


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Introduction

What is TOC ??


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Introduction

TOC Focus on 3 Activities Throughput Inventory Operating Expense


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Introduction

In TOC we Increase Throughput


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Introduction

In TOC we Minimizing Inventory


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Introduction

In TOC we Decreasing Operating Expense


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Introduction

After we

Throughput Inventory Operating Expense


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Introduction

After we The Result

1. Financial Performance Profit

2. Return on Investment3. Cash Flow


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Introduction

Traditional View point Pressing in Increasing Throughput Decreasing Operating Expense Minimize inventory are not important


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Introduction

TOC Recognize lowering Inventory Help: Better Product Lower Price Responsiveness to Customer needs


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TOC Steps(Preview Only)


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TOC Step by Step

TOC Step:

1) Identify the organization Constraint(s)2) Exploit the binding Constraint(s)

3) Subordinate everything (step 2)4) Elevate the binding Constraint(s)5) Repeat the process


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TOC Step by Step

1. Identify the organization Constraint(s)

External Constraints Internal Constraints Loose Constraints Binding Constraints


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TOC Step by Step

2. Exploit the binding Constraint(s)


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TOC Step by Step

3. Subordinate everything (step 2)We are no longer think about efficiency

Assume that the grinding process by themaximum of its capacity

it will add number of work in process to thedrilling process, since the capacity ofprocessing in the drilling process is lowerthan the grinding process.


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TOC Step by Step

4. Elevate the binding Constraint(s)We Try to continue to improve

Adding more production can be solved byadding more shift in the drilling process .


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TOC Step by Step

5. Repeat the processTry to evaluate the whole process

Because the TOC objective is to continuallyimprove the performance by manage the

constraint


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TOCIllustration of Constraints

(Video)


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Illustration of Constraints


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Theory of Constraints

Case Study


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Background


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Background

Founded in :1970 Company Type : Manufacturing Product : Semiconductor, Fiber

Optic, Fiber Cable.


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The Problem

1. How Lucent become more productive ?2. How Lucent improve their performance ?3. How Lucent can Increase their profit ?


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Case Study

Problem Simulation


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TOC Implementation

Source: Tocca.com


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation


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TOC Implementation

Step 1: Identify Constraints


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TOC Implementation

Step 2: Squeeze or exploit the constraint


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TOC Implementation

Step 3: Subordinate to the constraintRemove all excessive WIP


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TOC Implementation

Step 3: Subordinate to the constraint


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TOC Implementation

Step 4: Elevate the constraint


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TOC Implementation

Step 5: Repeat the process


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TOC Implementation

After Implementing TOCThroughput from : 10 / Day

Become : 14 / Day


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TOC Result Lucent

1. The Product can developed twice Fast2. The Project can be completed on time3. Increase in profit


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TOCSummary


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TOC Summary

Theory of Constraints (TOC) is goodtheory for factory .

TOC main idea is buffer and rope


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Questionand Answer


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Thank YouFor Your

ttention

theory of constraints ppt

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