2.5 TOC Concepts and LP Solution

2.5 TOC Concepts and LP Solution - TOC CONCEPTS MGSC 485...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
TOC CONCEPTS 1 MGSC 485 – Business Process Management Professors Sanjay Ahire and Jack Jensen Moore School of Business University of South Carolina
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
SEVEN PRINCIPLES OF THE THEORY OF CONSTRAINTS 1. The focus should be on balancing flow, not on balancing capacity. 2. Maximizing the output and efficiency of every resource may not maximize the throughput of the entire system. 3. An hour lost at a bottleneck or a constrained resource is an hour lost for the whole system. In contrast, an hour saved at a nonbottleneck resource is a mirage because it does not make the whole system more productive. 4. Inventory is needed only in front of the bottlenecks in order to prevent them from sitting idle, and in front of assembly and shipping points in order to protect customer schedules. Building inventories elsewhere should be avoided.
Background image of page 2
SEVEN PRINCIPLES OF THE THEORY OF CONSTRAINTS continued 5. Work, which can be materials, information to be processed, documents, or customers, should be released into the system only as frequently as the bottlenecks need it. Bottleneck flows should be equal to the market demand. Pacing everything to the slowest resource minimizes inventory and operating expenses.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/02/2011 for the course MGSC 485 taught by Professor Ahire during the Spring '10 term at South Carolina.

Page1 / 13

2.5 TOC Concepts and LP Solution - TOC CONCEPTS MGSC 485...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online