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The Theory Of Constraints: TOC LEARNING

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TOC Applications

There are a number of TOC applications. We have introduced six below.

Each TOC applacation is a process of ongoing improvement. Applying the process to the correct problem will result in rapid lasting results. In addition the process installed will direct future ongong improvement activity.

 

 

Operation

The application of TOC for environments termed operations was made famous in Eli's best selling novel The Goal. In fact many think of this application as being TOC. The process or application of TOC used in operations is often called Drum Buffer Rope (DBR) which describes the three components of the application. Using DBR will bring rapid results in repetitive production type processes with relatively short process times. The most common improvements are: shorter lead times, very high delivery performance, increased productivity. It is normal to reveal 25% hidden capacity. More on the DBR process...

Marketing and Sales

The TOC application for Marketing was introduced in Eli' novel Its Not Luck. Sometinmes it is referred to as the Mafia offer. The process enables an organisation to tailor its offering (often with small changes) such that its market pecieves it as being of much higher value that the competitive offerings. The accompanying sales process is needed to ensure that the sale are able to sell the offer without reducing its percieved value. More on the TOC marketing and sales applications...

Measurement Eli has said that the current basis of measurements is THE constraiint for many organisations. The measurement appication of TOC reveals the false assumptions that are the basis of many traditional measures and suggests alternative approaches to monitor, control and incentivise. Removing incorrect measures and repalacing them with a few effective measures can bring big reults. More on the TOC approach to measures...

Problem Solving TOC applications are developed using a six logical thinking process. Three of these processes (Clouds, Negative Branches, and the Prerequisite Tree) are very useful for day to day problem solving. Used independently or in combination they increase the productivity of individuals, managers and teams. More on the TOC problem solving thinking processes.

ProjectsThe TOC application for project environments is called Critical Chain. It has similarities to the operations applications but is designed to provide results in environments where there is a much higher degree of uncertainty. For example new infrasturture or enginerering projects, the introduction of a new computer system, the integration of two companies, typically environments where the process times are longer less repeatable. If anything the results achieved are even bigger than in operations. It is often possible to increase the productivity of the most valuable engineers by 40% whilst reducing the time and cost needed to complete a project.

Strategy and Tactics The TOC strategy and Tactic process is knoown as the TOC 4 by 4 process. Using this process enables an organisation to see new ways to build a strategy that will give it rapid bottom line results whilst ensuring it has the ability to prosper for a very long time into the future. The outcome of a 4 by 4 session is a set of clear schronised tactics for eacch department to implement. More on the 4 by 4 process...

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