| Pre-Requisite Tree (PRT) |
The PRT is a diagram describing the major milestones leading to the successful implementation of the injection. The milestones are connected to each other through Necessity Logic. By relying on everybody’s “expertise” at pointing out obstacles, the PRT enables dissection of the implementation tasks into an array of interrelated, well-defined, Intermediate Objectives. Source: Oded Cohen […] |
| Procedures and Reports in Injection Implementation |
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 […] |
| Production Flow |
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 […] |
| Production Flows, Types |
Production processes differ by structure and the nature of flow of work-in-process through that structure. There are four basic types of work flows, which are referred to as “A”, “V”, “T”, and “I”. This taxonomy is based on the graphical representation of their respective flows. The flow of work through production has a direct impact […] |
| Production Management, Boundaries |
All activities associated with managing a flow of the order from the release of materials to the shop floor until it is ready to be shipped to the customers. Source: Oded Cohen and Jelena Fedurko, Theory of Constraints Fundamentals, 2012 |
| Resolving Conflicts – TOC Basic Assumption no. 2 |
All contradictions can be resolved without compromise – it is our level of understanding and our assumptions that hold the contradiction in place. A compromise is usually not a win-win solution. This basic assumption manifests a strong belief that conceptually there should be no conflicts within our reality – hence – people should strive to […] |
| Return on Investment (ROI) the TOC Way |
Periodic T, I and OE are used in order to assess the ROI of the company through the use of the formula: ROI=NP/I = (T-OE)/I When judging the incremental impact of a decision that contains additional investment the marginal ROI is calculated through the formula: Marginal ROI = ∆NP/∆I = (∆T-∆OE)/∆I Source: Oded Cohen […] |
| Rules for surfacing and checking assumptions in the Cloud – 4+2 Rules |
Four Assumption Rules for straight arrows A-B, B-D, A-C, and C-D’ Rule 1 – Referring words 2 checks: (1) The statement after “because” should contain some words that clearly refer to the “in order to” part of the statement, and some to the “we must” part. (2) Make sure that the assumption is bringing in […] |
| SDBR (Simplified Drum–Buffer–Rope) and DBR (Drum–Buffer–Rope) |
Simplified Drum-Buffer-Rope (SDBR) The name Simplified Drum-Buffer-Rope (SDBR) was given to the TOC solution for managing production environment that does not have a bottleneck or any severe CCR – Capacity Constraint Resource. In SDBR the Drum is given to the market. It is assumed that there is enough capacity to fulfill the market demand in […] |
| SDBR: Simplified Drum–Buffer–Rope |
The name Simplified Drum-Buffer-Rope (SDBR) was given to the TOC solution for managing production environment that does not have a bottleneck or any severe CCR – Capacity Constraint Resource. In SDBR the Drum is given to the market. It is assumed that there is enough capacity to fulfill the market demand in full within the […] |
| Solutions, Theory of Constraints |
TOC has two sets of solutions: LOGISTICAL SOLUTIONS for managing the flow (of material, products, work in progress, orders, tasks in the project environment, patients in a hospital, etc.) Make to Order – MTO Make to Availability – MTA Purchasing to Order – PTO Purchasing to Availability – PTA Distribution to Availability – DTA Critical […] |
| Strategy and Tactics Tree – S&T |
The Strategy and Tactics Tree (S&T) graphically represents a multilevel cascade structure in which each step is achieved by performing several steps at a lower level. The objectives of the tool: Supporting the development of well-defined strategy for the organization. Enabling good communication of the strategy and what it should achieve. Enabling developing all the […] |
| T-Flow |
A flow that reflects a limited number of components that can be assembled in a wide variety of ways to create a very large number of finished products – far more than the number of original components. The ending part of the process resembles “V” flow, the front part of it may resemble either “A” […] |
| Theory of Constraints – TOC |
Theory of Constraints (TOC) provides a set of holistic processes and rules, that exploits the inherent simplicity within complex systems through focusing on the few “leverage points” as a way to synchronize the parts to achieve ongoing improvement in the performance of the system as a whole. |
| Thinking Processes (TP) |
A set of logical tools to analyze the Current Reality (Clouds, UnDesirable Effects – UDEs, Core Cloud, Current Reality Tree – CRT) understand and solve dilemmas and conflicts (Clouds, Assumptions, Injections) develop solutions (direction of the solution, Injection) check the solution for potential negative outcomes (Negative Branch Reservation – NBR) check the solution for bringing […] |
| Throughput (T) |
For commercial organizations Throughput is defined as: The rate at which the system generates money through sales. Throughput is the difference between the selling price (P) and the Totally Variable Cost (TVC). T = P – TVC For non for profit organizations Throughput is defined as: The rate at which the organization generates goal units. […] |
| Time Constraint |
Time Constraint – The response time of the system to the requirement of the market is too long to the extent that it jeopardizes the system’s ability to meet its current commitment to its customers as well as the ability of winning new business. Constraints are the factors or elements that determine how much the […] |
| Tools, Theory of Constraints |
TOC has two sets of tools in accordance with the two sets of solutions: LOGISTICAL SOLUTIONS for managing the flow (of material, products, work in progress, orders, tasks in the project environment, patients in a hospital, etc.) Make to Order – MTO Make to Availability – MTA Purchasing to Order – PTO Purchasing to Availability […] |
| Transition Tree (TrT) |
The thinking process used to construct a detailed implementation plan, based entirely on the action of the initiator or the implementer of the solution. TrT is used in order to capture and communicate what are the actions, why they are needed and what is the logic supporting the expected outcomes. Usually, the TrT is used […] |
| Trees: Pre-Requisite Tree (PRT) |
The PRT is a diagram describing the major milestones leading to the successful implementation of the injection. The milestones are connected to each other through Necessity Logic. By relying on everybody’s “expertise” at pointing out obstacles, the PRT enables dissection of the implementation tasks into an array of interrelated, well-defined, Intermediate Objectives. Source: Oded Cohen […] |