Performance measures based on theory of constraints and five focusing steps in a job-shop manufacturing environment

Performance measures based on theory of constraints and five focusing steps in a job-shop manufacturing environment

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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: , ,
Keywords: theory of constraints, job shop
Abstract:

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.

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