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Theory of constraints
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Created by
Deborah Otunji
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Cards (13)
The Theory of Constraints proposes that every single
process
has a
single
constraint,
also known as the
bottleneck
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Bottleneck
The constraint that
limits
the total
throughput
in a process
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Every process has a
constraint
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Improving
the constraint is the quickest and most effective way to improve the
throughput
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When you
invest
into a
bottleneck
, a new and
different
bottleneck will appear in a different part of the process
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Three ways to apply the Theory of Constraints
Investing into
additional
capacity
Reducing
speed
to the bottleneck
Combining
both
methods
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Applying the Theory of Constraints
1. Invest into
additional
capacity
2. Reduce
speed
to the bottleneck
3. Combine
both
methods
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Investing into
additional
capacity
will increase the
throughput
of the process
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Reducing
speed to the bottleneck will reduce
work
in
progress
(WiP)
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Combining both methods will
increase
throughput, reduce
lead
times, and create
idle
time on each cycle allowing
balancing
loss
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Just-in-time
An alternative method that can provide
similar
results without having to do all these
calculations
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The Theory of Constraints can be applied in multi-stage manufacturing processes to
increase
capacity,
reduce
work in progress and
inventory
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Applying the Theory of Constraints will increase a business'
profit
margin
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