TOC Managemant

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A very efficient optimization method based on the elimination of constraints in a system is TOC (Theory Of Constraints) by Eliyahu M.Goldratt. In his novel, the most common read business book in the world, "The Goal", he describes the successes of TOC, which is nothing more than the practical application of physical and logical principles.

According to TOC, the flow through the system (production) is adjusted to market demand, instead of operating each unit at its maximum capacity. Only as much should be produced as is needed, because anything that is produced too much only incurs costs that are not covered by demand.
(inventory material costs, operating costs, personnel costs).

Through the consequent application of TOC, significant improvements can be achieved immediately, e.g. for an industrial production:

1. Higher throughput
2. Significantly lower inventory
3. Minimization of operating costs

The result is that your net profit increases and your cash flow improves significantly.

With TOC, not only constraints in the production environment, but also processes in sales, administration and project management can be identified and eliminated.
In addition to the above-mentioned so-called internal constraints, TOC can also be used to identify and systematically solve the limiting factors externally, f.e. reduced market demand.

Tecoma has so far used TOC management mainly in the manufacturing environment along the value chain. After value stream mapping and subsequent time studies, our experts identify the and solve them until the company is producing on demand (JIT). In order to optimally support the constraints, we use various LEAN methods, e.g. TPM, 5S or KANBAN part control, to optimally support the constraints and to keep it/them always "running". Because the maximum throughput at the bottleneck is also the maximum throughput of the entire production chain.


 

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