TOC

What does TOC mean and what is its purpose?

TOC stands for Theory of Constraints. It is a universal analytical method that offers a new approach to managing and continuously improving business operations. The primary goal of TOC is to identify and pinpoint the bottleneck or constraint within a system based on defined objectives and then exploit this constraint to its maximum potential. By focusing on the weakest link, the greatest real benefits can be achieved. If a system had no constraints, it would achieve its goals limitlessly.

The fundamental steps for continuous improvement according to the Theory of Constraints are:

• Identify constraints within the system (bottlenecks).
• Find ways to exploit the constraint to its maximum capacity.
• Adapt the environment to enable the constraint to perform at its highest potential.
• Increase the capacity of the constraint.
• Repeat the process from the beginning if the constraint shifts elsewhere.

How does it work in practice?

The Theory of Constraints is a universal method that can enhance and optimize performance and efficiency in various parts of a business and its individual limitations, such as:

Production Management

• Excessive work in progress
• Large inventories of finished products
• Failure to meet production deadlines and lead times
• High levels of overtime work
• Excessively long production lead times

Marketing

• Challenges in acquiring new customers
• Pressure to lower prices
• Intense price competition
• Reduction in workforce – excess capacity

Project Management

• Delayed projects, missed deadlines, excessive project duration
• Budget overruns
• Project outcomes not aligned with specifications
• Lack of organization in project activities and personnel

Distribution Management

• Delayed deliveries to customers
• Incomplete or poor deliveries to customers
• Shortage of specific items in stock
• Excess of finished and undelivered products

People Management (Communication)

• Excessive bureaucracy
• Lack of initiative
• Unclear authorities and responsibilities
• Employees are not motivated and are more focused on finding reasons why something cannot be done, rather than seeking solutions

TOC enables companies to find their own solutions to constraints that were previously seen as unsolvable. This method is effective for solving individual problems as well as addressing long-term generic issues.

Recommended training:

Training name	Training duration	Venue	Price	The nearest date
LEAN Management	2 days (8:00 - 14:00)	Online	590,00 € 708,00 € VAT included	10.07.2024 - 11.07.2024 + 2