THEORY OF CONSTRAINTS
Manage Constraints and Maximize Production with the Theory of Constraints
For budget-minded operations looking to improve performance, the Theory of Constraints (TOC) represents an ideal starting point as a targeted approach. TOC is an improvement process that focuses on increasing production, by identifying the cause of the constraint, the solutions to help overcome the constraint, and implementation of the solutions.
MPPIglobal applies a five-step process for TOC. First, we identify the constraint. This is the process bottleneck. It can be identified with techniques such as data regression, data analysis, capability analysis or cycle time analysis, and is dependent on the assets selected.
Second, we exploit the constraint by getting as much capacity as possible through it. This is achieved via the elimination of defects captured with Optimum Software as part of the capacity maximization process. MPPIglobal uses a Maximum Sustainable Rate (MSR) or Maximum Sustainable Production Rate (MSPR) as part of the defect identification and elimination process.
Third, we subordinate everything to the constraint. Fourth, we elevate the constraint by implementing additional capacity. Additional capacity is only deployed after all other options have been explored. Fifth, once the constraint has been removed, we go back to step one of the TOC process and implement TOC on the new system constraint.
Benefits for your company
- Increase company profitability
- Increase production
- Establish a clear understanding of what’s limiting production
- Avoid additional capital investment
- Decrease costs
- TOC supports Continuous Improvement
- Reduce working capital and inventory