TOC Terms and Concepts – Page 2

A base structure of the full Current Rуality Tree (CRT) which shows the Core Cloud with assumptions that is turned 90 degrees with the changed direction of the arrows. Source: Oded Cohen and Jelena Fedurko, Theory of Constraints Fundamentals, 2012

A base structure of the full Future Rуality Tree (FRT). Source: Oded Cohen and Jelena Fedurko, Theory of Constraints Fundamentals, 2012  

CRT is a logical structure that connects the UDEs to each other through the Gap Analysis and explains the current level of the performance measurements. The CRT assists in validating that the Core Cloud (that is built on the base of the consolidated clouds of the UDE clouds) does, in fact, contain the core conflict […]

Drum-Buffer-Rope (DBR) The name Drum-Buffer-Rope (DBR) was given to the TOC solution for managing production environment that has a bottleneck or a severe CCR – Capacity Constraint Resource). The name was given in the 1980s for describing scheduling the production shop floor as per the OPT – Optimized Production Technology software. The concepts of DBR […]

The name Drum-Buffer-Rope (DBR) was given to the TOC solution for managing production environment that has a bottleneck or a severe CCR – Capacity Constraint Resource). The name was given in the 1980s for describing scheduling the production shop floor as per the OPT – Optimized Production Technology software. The concepts of DBR were first […]

Deployment Chart  is the best way to understand and record the way the system works. The deployment chart describes the entire flow of processes and interaction of the functions from receiving a Customer Order – from an external or internal customer – until shipping the finished goods. The deployment chart provides us with the map […]

Desired Effects (DEs) are benefits received as a result of implementing the Injection(s). DEs should replace UDEs (Undesirable Effects).   Source: Oded Cohen and Jelena Fedurko, Theory of Constraints Fundamentals, 2012

The conversion of monetary value of inventory to time is done by using the term called DIOH. “A day” in this conversion means the value of average day of sales. For a TOC calculation we use the average daily sales in terms of the purchasing price of the materials or even better – in terms […]

1. Identify (choose) the system’s constraint. 2. Decide how to exploit the system’s constraint. 3. Subordinate everything else to the above decision. 4. Elevate the system’s constraint. 5. If the constraint is broken go back to step one but do not allow Inertia to cause the system’s constraint.   Source: Oded Cohen and Jelena Fedurko, […]

There are four basic types of work flows, which are referred to as “A”, “V”, “T”, and “I”. Production processes differ by structure and the nature of flow of work-in-process through that structure. The flow of work through production has a direct impact on exploiting the constraint and subordinating non-constraints. This taxonomy is based on […]

FRT is a logical structure that enables a person to construct a solution which, when implemented, replaces the existing UnDesirable Effects (UDEs) by Desired Effects (DEs) without creating devastating new ones. The FRT assists in validating the proposed solution that has been developed to break the Core Cloud. Validation means that there is a strong […]

A flow that typically begins with very few raw materials that proceed through production resulting in very few finished products. “I” plants are typically dedicated lines. Typically the line produces only a limited number of products, and it works on only one product at a time (flow lines). Examples: Food and Chemical industries, Sheet-metal fabrication, […]

A detailed plan for implementing a solution that contains one or several Injections. There are two inputs to the planning process: Necessary deliverables in the course of the Injection implementation to make sure that the Injection becomes the reality. Major obstacles – perceived “show stoppers” that might completely block the ability to implement the Injection. […]

In system change – the Injection is a new feature or a new managerial procedure that replaces an existing procedure or an existing feature that according to our analysis are responsible for the gaps in performance (UDEs – Undesirable Effects). The Injection has a special role in the design of the TOC solution. Solutions of […]

In system change – the Injection is a new feature or a new managerial procedure that replaces an existing procedure or an existing feature that according to our analysis are responsible for the gaps in performance (UDEs – Undesirable Effects). The Injection has a special role in the design of the TOC solution. Solutions of […]

Technical Procedures and Reports – Management needs to get information about the progress of the orders. Some of the injections are activated through technical procedures – usually with the help of IT programs. Managerial Procedures and Reports – establish what decisions and actions should be taken by management in order to ensure on-time delivery. Many […]

Intermediate Objective (IO) is a situation (deliverable) in reality that either removes the obstacle to the implementation or neutralizes the ability of the obstacle to block the implementation. The implementation plan contains one or several activities (task) to achieve the desired Intermediate Objective (IO). Example 1: Intermediate Objectives (IO) in a Prerequisite Tree (PrT) Example […]

The Intermediate Objective (IO) Map is a plan that determines the sequence of IOs to be achieved in the transition to implement the Injection. The logic of the sequence is that one IO has to be in place before the other IO can be achieved. There is a dependency based on tangible deliverables that each […]

Inventory the TOC Way – is a part of the Investment. Inventories are recorded at the purchasing prices (at RM prices, price of components or goods for resale), without added value due to internal processes and without overhead absorption.   Source: Oded Cohen and Jelena Fedurko, Theory of Constraints Fundamentals, 2012

Inventory turns (the TOC Way) – is a measurement to reflect the amount of sales over a period of time (like one year) that are generated per one unit of money (like $1) invested in Inventory. The higher the inventory turns the better is the use of the money. Inventory turns the TOC Way = […]