What are the Theory of Constraints Applications for Operations Management and Supply Chain Replenishment?
CMS bases its methodologies on the Theory of Constraints (TOC) – a business management philosophy created by Dr. Eli Goldratt in the early 1980s. Central to TOC is that every system has a constraint that prevents the system from achieving higher levels of performance. Once an organization knows where its constraint is, it can determine how best to leverage its performance. TOC is used worldwide in manufacturing (high and low volume), construction, financial services, insurance and health care etc. to dramatically improve results. TOC works hand in hand with Lean Thinking and Six Sigma. The TOC applications for Operations Management and Supply Chain Replenishment are: Drum-Buffer-Rope Production Planning and Execution Order Flow Issue Reporting Continuous Improvement Consumption Driven Replenishment Inventory Management Throughput Accounting based Decision Making Framework Drum-Buffer-Rope Production Planning and Execution Drum-Buffer-Rope (DBR) is a production scheduling and execution
