An Introduction to TOC
What is the goal of
do you use?
Utilization? Net Profit? ROI?
Cash Flow? Labor Efficiency?
Are these the right measurements to enable your
workers to make day-to-day operating decisions that are in
the best "global" interest of the organization?
interactive workshop has one objective:
Participants have the opportunity
to make decisions in several simulated manufacturing
environments and compare the results from a "local"
perspective to those made from the "global" perspective. The
fundamental principles of TOC are explained and demonstrated
through these simple but effective hands on simulations. TOC
in production is covered in some detail. Participants are
also introduced to how TOC is applied in the following
* Distribution *
Project Management * Marketing.
A brief history:
Since March 1996, this workshop has been conducted 35 times:
20 for the public and 15 as a dedicated in-house offering.
There have been 757 participants from over 100 Iowa
What do past participants say to those who don’t know if
this workshop is worth their time?
Very high value for the $ and time invested in relation
to potential gain toward ‘the goal’."
"Yes, they need
to go. Makes you think more in depth into problems."
worth it and a great learning experience."
"What Tim went
over will make major positive change through the
Meet the Instructor:
Mike Willett has been studying TOC for 10 years and has helped
several manufacturers implement TOC in their production systems. He
worked 8 years for medium sized contract manufacturers, and has
consulted with manufacturers for 20 years. Mike has a Masters degree
in Industrial Supervision & Management. Contact him at 319-433-1286 or <email@example.com>
and visit our Constraint Management/TOC web site
The principles taught in this workshop are based on the
books by Eli Goldratt, all available through North River
Press: The Goal (1984), The Race
(1986), What is this thing called Theory of Constraints?
(1990), It's Not Luck (1994), and Critical Chain
An Introduction to the Theory of Constraints
a CIRAS workshop
Outline for 1 day workshop
Purpose: To challenge the way you think!
- Current Reality
- Three questions...
- What is the goal of your company?
- What measurements do you use to tell if you
are getting there?
- What formulas are used?
- Applying your current way of thinking to a
fictitious company: Block Mfg., Inc. example
- Decide which of two orders to fill.
- Explain on what basis you made your decision
- Calculate your profit for the week.
"Would you be interested in a way to double your profit?"
- Introduction to the Theory of Constraints (TOC)
- View the video "The Goal" by Eli Goldratt (50
- Discuss key points: Throughput, Inventory,
Operating Expense; 5 Step Process Of On Going
- Revisit the Block Mfg., Inc. from a throughput
perspectiveand double your profits!
- Chain analogy
- Concept reinforcement (Group activities where
6 volunteers participate up front while others record
- Studying simple systems
- Two "blue block" exercises illustrating
dependent events coupled with statistical
variation. These show how a "balanced" line will
produce output with "relatively high" variation
and will always be less than the capacity of the
individual steps in the process. Thus it makes
sense to consider TOC.
- Illustrating "Conventional Rules" vs. "Global
Rules" (from "The Race" by Goldratt)
Three more "blue block" exercises
- Managing a simple system
One "blue block" exercise where the class is challenged to find the constraint
- Managing Inventory; Drum-Buffer Rope (DBR); and
- Illustrate DBR with the blue blocks
- Application tools
- Goldratt’s 5 Step process for continuous
- Thinking Process (From "It’s Not Luck" by
- Brief introduction