TOC (THEORY OF CONSTRAINTS)
THE MOST PRODUCTIVE METHODOLOGY OF PROCESS SYNCHRONIZATION
The achievements of companies applying TOC (the originator Dr. Eli Goldratt) results prove that TOC is one of the most effective business management methodologies in the world. It is proved by practical achievements that TOC is more efficient than other management methodologies, e.g. JIT (Just-In-Time), TQM (Total Quality Management), LEAN (Toyota Production System), Six Sigma etc. By using TOC many companies in the world increased their profitability, reduced inventories, found new profitable markets and got out of bankruptcy. The practical study held by APICS (The Association for Operations Management) showed, that using Six Sigma and LEAN together with TOC provides the results which is 24 times more effective than using only Six Sigma and 10 time more effective than using LEAN alone. TOC is a global theory, which claims, that there must be a constraint in every system, and the goal of business organization is to earn money.
SUCCESS STORIES
Boeing Inc.
There was achieved a 75 % reduction of lead time; 60% reduction of WIP inventories; the increase in throughput - 150%, delivery rate approaches 100%.
Motorola Inc.
Throughput increased by 150%; the cycle were reduced by 20%; that helped to free excess resources. The reduction of cycle time impacted the much faster adoption of new technologies.
Ford Motor Company
The lead time was reduced by 60%; there were 50% less of quality deffects; the efficiency of investments increased by 20% and all above helped to save about $100 dollars.
SUMMARY OF AN INDEPENDENT STUDY°
Sampling of companies using TOC
°Steven J. Balderstone and Victoria J. Mabin, School of Business and Public Management, Victoria University of Wellington, New Zealand
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