What is TOC? Theory of Constraints (TOC) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt in his 1984 book titled The Goal, that is geared to help organizations continually achieve their goal. The title comes from the contention that any manageable system is limited in achieving more of its goal by a…
Key Performance Indicators (KPIs) Domains Management Accounting; Personal and group evaluations; support of bonus systems; input for operational steering and actions of improvement. Specific Targets Installing an objective judge of short- and long-term actions and performance, that unambiguously and transparently lays the connection between individual and group performances, and the profit of the company.
Competitive Price-Setting Domains Marketing, Sales, Accounting Specific Targets Offering products and services at prices that work well in the current market and of whom the impact on one’s own profit is always transparent. Usual results Flexible price-setting to allow the conclusion of certain deals One-time price-setting to sell overcapacity in a segmented market Responsabilization…
Dynamic Replenishment Domains Stock steering of finished products, resources, and intermediate products. Supply chain management – Logistics – Purchase Specific Goals Optimal availability of goods with minimal stock and less administration. Usual Results Drastic improvement of the delivery reliability of the final product Diminishing of urgent actions Disapearance of production interruptions due to shortages…
TOC – Synchronised Supply Chain: A strong backbone for your lean-approach The main foundations of lean are: Elimination of Waste Continuous improvement Respect for humanity/stakeholders Avoiding waste assumes there is not enough time or resources to do everything one dreams of doing, which is true now more than ever. It all comes down to applying…
Change Management Domains Strategic changes, Human resource management, small and large operational changes Specific Goals Implementation of small or fundamental changes at a rapid pace by attaining consensus from key figures and the support of the entire organisation. Rapid is not a synonym for shallow, on the contrary, every change is a step to long-term…
TOC– SYNCHRONISED SUPPLY CHAIN. For fast and reliable results Do you sometimes have these issues: Too much/not enough supply? Missing that one piece? Suppliers that deliver too early or too late. Costumers that obligate you to have unnecessary stocks? Long or unreliable delivery times? Non-adapted Kan-Ban quantity? … Do you struggle with one or more…
Critical Chain Specific Targets Diminishing of throughput times of the deadline through optimal use of critical resources Usual results Reduction of production time with 30% to 50% Securing of the deadline to interruptions of different order through using a robust and transparant technique (TOC-Buffer Management) Optimising of the use of critical resources in a…
(S) DBR – Steering and optimization of production- and administrative processes Specific Targets Steering the operational chains for maximal yield and reliability with minimal resources. Usual results Shortening of throughput times without changes or investment in production (usually 30% to 40% shorter after 4 months of implementation Strong improvement of delivery reliability (usually starting out…
TOC Applications TOC can be applied to many different aspects of your company. We offer different support based on your individual situation, so you can find the solution that fits you.
