Week 9 TOC 2011 student - Objectives Week 9 Managing Time...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 9: Managing Time: The Theory of Constraints Nicole Ang Quad 3097 Objectives 1. Understand concept of “time-based management” 2. Understand the Theory of Constraints (TOC) & how it differs from conventional approaches 3. Appreciate technical design aspects of TOC 4. Appreciate how constraining resources and process variability might be managed 5. Be aware of potential issues with TOC Reading ± BDMM Chapter 5 Theory of Constraints ± Available on Blackboard ± Mowen et. al pp.741-2 & 755-61. ± For interested people ± “A Little TOC Goes a Long Way” ± Smith, F. MSI August 2003. ± Instructions on how to access this article are given along with the tutorial questions Lecture Outline 1. Introduction 2. What is a constraint? 3. Theory of constraints 3.1 Measurement 3.2 Managing constraining resources 3.3 Examples 1. Introduction to time-based management ± This subject focuses on value creation ± Using processes to create value ± Processes are supported by resources ± How do we create value by managing a constraining resource? In particular. .. ± How do we manage constraining resources in order to generate revenue at an increased rate ± E.g., $ per machine hour 6 Time-based management LO1 ± Compress time to undertake processes to enhance customer value & reduce costs ± Develop new products/services ± Fill customer orders for products/services ± Why important? ± Dictates rate at which products are produced & revenue generated ± Determines time resources are tied up in processes ± Delays lead to inventory build-up ± New products/services
Background image of page 1

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

View Full DocumentRight Arrow Icon
7 Developing new products & services ± Measures to assess product development process ± Time-to-market ± Break-even time ± How to reduce time taken ± Involve suppliers ± Efficient design process ± Using teams & decentralisation 8 Time taken to fill customer orders Order placed Order delivered Order received Order receipt time Order setup Order produced Waiting time Production time Production cycle (lead) time Delivery time 2. What is a constraint? ± Anything that stops you from getting more of what you want ± External or Internal ± Tangible or Intangible 10 External constraints ± Market constraints ± Supply constraints 11 Internal constraints ± Materials ± processes are starved of materials ± Capacity ± different machine capacities ± Logistical ± Planning and control issues, e.g. variability ± Managerial ± Strategies and policies ± Behavioural Examples for an airline?
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/13/2011 for the course ACCT 2522 at University of New South Wales.

Page1 / 10

Week 9 TOC 2011 student - Objectives Week 9 Managing Time...

This preview shows document pages 1 - 3. Sign up to view the full document.

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