About this Presentation
The traditional view is that Theory of constraints is based on two principles. 1 One or Few Constraints limit the performance of all Systems 2 To achieve highest, Net Profit, ROI and Cash Flow, managers should focus improvements, investments on better exploiting and elevating Constraint(s). However, there are two other critical principles of Theory of Constraints. 3 You cannot ignore constraints when making commitments 4 How you consider and allocate constraints (the RULES you use), can make a BIG difference on the system performance. In this presentation, Dr. Alan Barnard will share insights on the consequences to managing projects, inventory and making product mix decisions when constraints are not fully considered when making commitments and, if it is misallocated in planning or execution.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
The speaker discusses the impact of changing rules in the planning stage of development, with potential benefits of up to 200,000 in net sales.
The speaker emphasizes the importance of understanding the cost of maintaining inventories and the real order cost.
The speaker also discusses the comparison of traditional rules of MinMax economy with TOC replacement rules and DDMRP, and how these rules handle change and transportation.
Instructor(s)
