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Archive for category: TOC Terms and Concepts

81

Constraints

The factors or elements that determine how much the system can accomplish. Types of Constraints: Capacity Constraint – a resource which cannot provide timely capacity the systems demands for it. Market Constraint – the amount of customers’ orders is not sufficient to sustain the required growth of the system. Time Constraint – The response time […]

83

Conflicts, Resolving – 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 […]

84

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 […]

85

Basic Assumption no. 2 – Resolving Conflicts

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 […]

86

Unrefusable Offer (also Mafia Offer/Value Offer)

It is an exceptionally attractive and hard-to-copy offer a company gives to its potential clients with the view of increasing sales through capitalizing on the operational or any other excellence the company has built. The mafia/value/unrefulsable offer should satisfy the following criteria: It is based on significant improvements in company’s logistical performance; It brings exceptional […]

87

Value Offer (also Mafia Offer/Unrefusable Offer)

It is an exceptionally attractive and hard-to-copy offer a company gives to its potential clients with the view of increasing sales through capitalizing on the operational or any other excellence the company has built. The mafia/value/unrefulsable offer should satisfy the following criteria: It is based on significant improvements in company’s logistical performance; It brings exceptional […]

88

Convergence – TOC Basic Assumption no. 1

Convergence – Everything within a system is connected by cause and effect relationships. Identification of the causes leads to convergence onto an apparent core problem/contradiction/conflict. Basic Assumption no.1 as reflected on the U-Shape: Source: Oded Cohen and Jelena Fedurko, Theory of Constraints Fundamentals, 2012

89

Basic Assumption no. 1 – Convergence

Everything within a system is connected by cause and effect relationships. Identification of the causes leads to convergence onto an apparent core problem/contradiction/conflict. Basic Assumption no.1 as reflected on the U-Shape: Source: Oded Cohen and Jelena Fedurko, Theory of Constraints Fundamentals, 2012

90

Pivot [TOC Pivot]

TOC Pivot provides the core change from the conventional management to management the TOC way Solutions of Managing the TOC Way stem from the Pivot and bring new elements to reality – Injections and Desired Effects. Source: Oded Cohen and Jelena Fedurko, Theory of Constraints Fundamentals, 2012

91

Deployment Chart

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 […]

92

Mafia Offer (also Value Offer/Unrefusable Offer)

It is an exceptionally attractive and hard-to-copy offer a company gives to its potential clients with the view of increasing sales through capitalizing on the operational or any other excellence the company has built. The mafia/value/unrefulsable offer should satisfy the following criteria: It is based on significant improvements in company’s logistical performance; It brings exceptional […]