
This course, "Theory of Constraints and its Applications" is a full course on TOC fundamentals and its importance in improving performance of systems. It is based on the breakthrough philosophy of constraints management as introduced by Dr. Eliyahu Goldratt. The simple principle of finding a leverage in Organizations need a practical mechanism to be implemented in complex systems. TOC is that mechanism that helps us in finding and managing the leverage points (constraints) of a system to improve its results. This is a complete course with all important applications that are currently helping Organizations across the globe to achieve great results. This course covers not only the theoretical aspect of TOC but also the practical application in real life.
In the first section, Give me a lever long enough, we will understand the fundamentals of TOC concepts. In this section we’ll understand what is systems thinking and why it is important in TOC world. We will also learn five focusing steps for applying TOC in any situation. A very interesting topic, quadrants of change will also be covered in this section.
In the second section which is titled as “An Idle resource is not a waste”, we will find out how TOC concepts are applied in operations. We will understand why the application for operations is called Drum-Buffer-Rope. We then see the evolution of flow applications from Henry Ford’s assembly lines, to Toyota productions and finally to theory of constraints.
In the third section that is Forecasts are misleading, we will discuss the TOC concepts to manage the flow of inventory. We will understand policies that lead to surpluses in shortages in a supply chain and we will conclude this section with understanding of Pull distribution, the complete TOC solution for SCM.
The forth section is titled as the later we start, the earlier we finish. This is a section on projects. In this section we will analyze why most of the projects get delayed in spite of detailed planning and how Critical chain project management can help us manage our projects better.
In fifth section which is titled as the sum of local optima is not global optimum, we’ll discuss throughput accounting. We will see that the traditional cost accounting, has been rooted in assumptions of past and that’s why its not effective in todays decision making. TOC measurements of Throughput, inventory and operating expenses, not only help us in decision making, but also provide a uniform measurement system across the departments.
The sixth section is titled as “thinking clearly is no ones monopoly muh-nop-uh-lee is dedicated to TOC thinking processes. In this section we will learn the logical cause and effect diagrams used in TOC world. These diagrams, also called the thinking processes . These help us in answering 3 questions of change, ie 'what to change', 'what to change to' and 'how to cause the change' in any situation.
In the last section, “TOC is one world is Focus”, we will be understanding the practical challenges in implementation of TOC. We will discuss how we fancy ourselves in being busy with various improvement projects without progressing towards the goal. We will also quickly understand what is happening in TOC world so that you can be better equipped for your future journey.
At the end of each section, we will summarize the big ideas that we’ve learnt as key concepts. We’ll also have some questions for you, that will help you to implement the key concepts in real life.
Welcome to the course !
Welcome to the first section of the course, "TOC & Its applications". This section TOC basics, is all about the foundational TOC elements. We will learn the concepts that form the backbone of all upcoming sections. The lego pieces that we’ll use to build various applications in this course.
Welcome to this section on TOC for operations. TOC has its roots in operations. In fact the first book on TOC, The Goal, is the story of a production manager who was struggling with his professional and personal problems (I highly recommend you to read the book). So this is the first application of TOC that Eli Goldratt developed. This application, which can also be called as the flow application, has now been extended to many other domains. In this section, we will explore, both, the basis of this application and the journey of its development.
The part of supply chain that deals with taking the product from manufacturing site to customer is called distribution. This section extends the flow concepts from production to distribution. This completes the entire gamut of a Pull supply chain, from final customer to the manufacturing plant.
We live in the world of projects. These projects, and whatever might be their size or nature, requires detailed planning and management. The TOC solution of project management is called the CCPM or Critical chain project management. It is one of the most powerful applications of TOC used across the world. In this section we will not only learn the CCPM, but also why this application deliver results in terms of completing projects in time. It we are able to manage time, the cost and scope automatically gets managed.
Measurements are an important part of our day to day life. A good measurement not only tells us the current status, but also the next course of action. In this section of Throughput Accounting, we will understand TOC’s approach to finance and measurements for a for profit company. TOC recommends a common set of measurement across all departments called Throughput, Inventory and Operating expenses. This is very different from traditional cost accounting approach and is very effective in day to day decision making in Organizations.
Thinking is a hard work and it has become more difficult today with the overload of information. Most of the times we are busy in choosing, assimilating, and digesting the ready made information, instead of doing any real thinking. This section on thinking processes is TOCs take on how to use thinking to develop our own solutions to the problems. TOC recommends a specific toolkit of logical maps for dealing with change. This section outlines all these tools used in TOC thinking.
In this section we will put it all together. This section summarizes all the above sections and covers some practical aspects of TOC. It outlines what is the ultimate goal of companies, how can value be created and how can we go about practially implmeneting TOC concepts in a company. We will discuss some of the implementation challenges that must be dealt to make the change effective. We will also briefly see the journey of TOC since "The Goal" through various books of Dr Eliyahu Goldratt.
This course, "Theory of Constraints and its Applications" is a full course on TOC fundamentals and its importance in improving performance of systems . It is based on the breakthrough philosophy of constraints management as introduced by Dr. Eliyahu Goldratt in 1980s through his bestselling book 'The Goal.'
In any situation, the efforts required to get a result depends upon the leverage we have. Finding this leverage is very difficult in complex systems that we deal with today. TOC is the science that helps us in finding and managing these leverage points (called constraints in TOC) of a system to improve its results.
This course is a complete course with the fundamentals of theory of constraints, its principles and application in real life. It covers all standard TOC applications (in thinking, operations, distribution, projects and finance) that are currently helping individuals/Organizations across the globe to achieve great results. This course also briefly covers 'Thinking Processes' of TOC to build your own solutions and applications. The course does not only cover the theoretical aspect of TOC but also the practical application in real life. If you are not satisfied with the results of the system you are working in and want to improve its output, this course is for YOU.