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March 2021 #13260 Page #47
Theory of Constraints with a Practical Truss Design Solution Example Todd Drummond
T
heory of Constraints (TOC) is not often clearly understood, and it can be confused with Just in Time (JIT). Below is a simplified explanation with some examples about TOC that many should be able to relate to their operations. TOC is an offshoot of lean manufacturing principles. Every organization has at least one constraint (bottleneck) that prevents the whole system from achieving higher performance. TOC can be used both at the macro or micro level and in other aspects of an organization, including at the overall company level, department, workstation, or a defined process. All processes must follow these simple rules for maximum output: •
Total output cannot exceed the slowest step in the line process; this is called line balance by industrial engineers.
•
Increasing other non-constraints can produce labor savings, but often that is a lost saving.
•
Increasing the company’s constraint normally will increase its net profits and labor savings per unit.
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