Theory of Constraints

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Table of Contents
I. Introduction 2
II. Then Why Do Most CI Programs Produce Such Disappointing Results? 2
The Improvement Conflict
What’s wrong with the traditional approach?
Resistance to Change:
The Reasons for Unsatisfactory Results?
III. TLS ­ Theory of Constraints Lean Six Sigma 8
The TLS Process:
IV. Results of TLS: 11
Sanmaina-SCI DOE results:
Tata Steel Results:
V. The Path Forward – Implementing TLS 13
VI. TLS Summary: A Synergetic Solution 14
VII. TLS Benefits: 14
VIII. Bibliography 15

Introduction
Many organizations struggle with their continuous improvement (CI) efforts; real bottom line results, whether in cost savings or increased revenues, just never materialize for many organizations. In spite of the widespread implementation of Lean and Six Sigma methods, poor results persist.
Then Why Do Most CI Programs Produce Such Disappointing Results?
At the heart of continuous improvement is the matter of change. In order to improve the process, we must change it. However, not every change results in an improvement. We would not bother to make a change if it didn’t result in something positive, yet many changes we make result in little real improvement. Why is there is there such a mismatch between our expectations for change and the results?
There are two distinct approaches to improvement. One, the traditional approach, can be best summed up in the phrase, “A cent plus a cent plus a cent plus a cent… will accumulate into a fortune.” This, the additive approach, says that if we improve a lot of different places, it will improve the entire system; or put another way, “every little bit helps”.
In contrast, the systems approach to improvement can be summed up with the phrase (paraphrasing Archimedes), “If I ...

... middle of paper ...

...ir sphere of process influence
A culture of continuous improvement exists
Significant progress towards world class with ZERO capital investment

Bibliography

1. Theory of constraint – a status report, International Journal of Production research.
2. Constraint Management: what is the theory? International Journal of operation and production Management
3. http://www.tocpractice.com/page/%E2%80%98toc%E2%80%99-promotion-%E2%80%93-tata-steel-experience
4. http://www.toc-goldratt.in/index.php
5. http://www.leanproduction.com/theory-of-constraints.html
6. Goldratt, E.M. & Cox J. (1984), The Goal, North River Press, New York
7. Pinnacle strategies – The TLS approach (www.pinnaclestrategy.com)
8. http://www.toc-goldratt.in/product/TOC-Insights
9. http://www.leanproduction.com/agile-manufacturing.html
10. http://www.benchmarksixsigma.com/professionals

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