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Introduction
What is TOC ??
Introduction
TOC Focus on 3 Activities
Throughput Inventory Operating Expense
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In TOC we Increase
Throughput
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In TOC we Minimizing
Inventory
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In TOC we Decreasing
Operating Expense
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After we
Throughput
Inventory
Operating Expense
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After we The Result
1. Financial Performance Profit 2. Return on Investment 3. Cash Flow
Introduction
Traditional View point
Pressing in Increasing Throughput Decreasing Operating Expense Minimize inventory are not important
Introduction
TOC Recognize lowering Inventory Help:
Better Product Lower Price Responsiveness to Customer needs
Adding more production can be solved by adding more shift in the drilling process.
Because the TOC objective is to continually improve the performance by manage the constraint
Illustration of Constraints
Background
Background
The Problem
1. How Lucent become more productive ? 2. How Lucent improve their performance ? 3. How Lucent can Increase their profit ?
TOC Implementation
Source: Tocca.com
TOC Implementation
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1. 2. 3.
The Product can developed twice Fast The Project can be completed on time Increase in profit
TOC Summary
TOC Summary
Theory of Constraints (TOC) is good theory for factory . TOC main idea is buffer and rope
Thank You
For Your Attention