Theory of Constraints Assessment

Full Theory of Constraints Focused Assessment

A full Theory of Constraints-Focused Assessment has 5 planned outcomes:

  • Give management a clear idea, with cause-effect justification, of the potential benefits to them of a Theory of Constraints implementation. This means quantifying, with justifying logic, the potential increases in Net Profit, as well as the impact on sales, productivity, on-time delivery or service levels, lead times, inventory, overtime, expediting and any other relevant performance criteria.
  • Offer a clear vision to management of exactly how the proposed new systems will look when implemented – how synchronous manufacturing will work, the criteria and rationale behind the choice of the strategic constraint, expected starting buffer times, how any replenishment logic will work, etc.
  • Identify all the major obstacles foreseen in making that vision a reality, with suggested ways around, over or if necessary directly through those obstacles.
  • Present a high-level implementation plan, including time-lines and some estimate of total effort from internal resources.
  • Propose a fee for the necessary services associated with the implementation, should the company elect to use an external consulting company. This is typically presented as a flat fee, or some combination of a fixed fee and performance-based fees and bonuses.

The findings are typically presented in the form of a 1-day presentation and discussion, with an accompanying document that addresses all the issues.

The Assessment Process

When we perform a TOC-Focused Assessment our work is a combination of on- and off-site effort, starting on-site with interviews with selected managers and executives, expanding to an examination of the plant’s operations and an understanding of issues of flow of materials and data, and interviews with shop personnel (supervisory staff and the process operators). Needed data is identified and either found to be available or not; if not, sometimes it can be collected during the Assessment itself, at other times we live with whatever we can get, and the collection of needed data becomes a task for any subsequent implementation.

Off-site time is used for analysis, planning, design and documentation, typically with a great deal of ongoing communication with company personnel and occasionally some additional site visits.

The outcome is a blueprint for focused performance improvement, one that is of value to the organization whether or not management elects to move ahead with a full Theory of Constraints implementation, and whether or not they choose to hire Synchronix in support of that implementation.

This link will take you to a description of a typical Synchronix’ Theory of Constraints implementation.