Article ID: | iaor20022798 |
Country: | United Kingdom |
Volume: | 40 |
Issue: | 4 |
Start Page Number: | 907 |
End Page Number: | 930 |
Publication Date: | Jan 2002 |
Journal: | International Journal of Production Research |
Authors: | Min Hokey, Gupta Mahesh, Ko Hyun-Jeung |
Keywords: | theory of constraints, job shop |
Theory of constraints (TOC) views a company as a set of interdependent processes working in harmony to achieve the profit goal of the company as a whole, and thus it emphasizes total system performance over localized measures to guide operational decisions. This paper demonstrates the usefulness of employing TOC-based global performance measures to make operational decisions (e.g. product mix, continuous improvement, inventory management, production planning and scheduling) to strengthen the internal supply chain in a relatively complex manufacturing environment, i.e. a job shop. An ARENA-based simulation model is presented and a number of scenarios are discussed that provide insights regarding the characteristic features of TOC, such as goals and necessary conditions, performance measures, five-focusing steps for continuous improvement, and drum–buffer–rope scheduling. These insights will assist managers in making important decisions regarding approaches to successful TOC implementations, and will provide academics with a broad range of future research opportunities.