Theory of Constraints

Discover the importance of methodically improving your entire business system based on recognizing, distinguishing and relieving process bottlenecks from system constraints.

This course is meant to apprise attendees on the importance of methodically improving their entire business system based on recognizing and distinguishing process bottlenecks from the system constraint. Once identified, an approach to relieving the constraint is explained. The course will also delve into the ramifications of cost accounting systems on production. A costing system that supports the theory of constraint methodology is introduced.

Course Prerequisite(s):

Basic understanding of Lean concepts, especially lead time and flow.

To get the most from the course, participants should have the ability to return to their workplace and provide upper management with an improvement strategy and a plan for application.

Course Objectives:

  • Provide a basic understanding of throughput operations strategies:
    • VATI Analysis (river systems)
    • Contribution Margin
    • Identification of control points
    • Sales/Production/Materials release
  • The use of DBR (drum, buffer, rope) to relieve constraints.
  • TOC Costing:
    • Components of Cost Accounting Systems
    • INPUT Measurement basis
    • Inventory valuation Methods
      • Throughput costing
      • Direct costing
      • Absorption costing
      • Activity based costing
    • Cost accumulation methods
    • Cost flow assumption
    • Recording interval

Get Started with Theory of Constraints (TOC)

Contact us to learn more about upcoming TOC training or bringing TOC to your company.