Theory of Constraints Handbook - James Cox Iii [783]
2A form of this cloud was presented in Goldratt, E. M. 1999. Goldratt Satellite Program. Session 2 Finance and Measures. (© E. M. Goldratt used by permission, all rights reserved.)
3Goldratt, E. M. 1990 . What’s This Thing Called Theory of Constraints? Croton-on-Hudson, NY: North River Press.
4In the APICS Dictionary (Blackstone, 2008, 2), common cause is defined as “Causes of variation that are inherent in a process over time. They affect every outcome of the process and everyone working in the process. Syn: random cause. See: assignable cause, assignable variation, common cause variability.” (© APICS 2008, used by permission, all rights reserved.)
Special or assignable cause, in the APICS Dictionary (Blackstone, 2008, 7) is defined as “A source of variation in a process that can be isolated, especially when its significantly larger magnitude or different origin readily distinguishes it from random causes of variation.” (© APICS 2008, used by permission, all rights reserved.)
5Project management solutions are discussed in Section II and logistics solutions are discussed in Section III of this Handbook.
6The TOCICO Dictionary (Sullivan et al., 2007, 15) defines critical chain as “The longest sequence of dependent events through a project network considering both task and resource dependencies in completing the project. The critical chain is the constraint of a project.
Usage: The critical chain plus the project buffer determines the lead time for the project. If no resource contention exists, then the critical chain would be the identical to the critical path.” (© TOCICO 2007, used by permission, all rights reserved.)
7The TOCICO Dictionary (Sullivan et al., 2007, 18) defines Drum-Buffer-Rope (DBR) as “The TOC method for scheduling and managing operations. Usage: DBR uses the following: 1. the drum, generally the constraint or CCR, which processes work in a specific sequence based on the customer requested due date and the finite capacity of the resource; 2. time buffers which protect the shipping schedule from variability; and, 3. a rope mechanism to choke the release of raw materials to match consumption at the constraint.” (© TOCICO 2007, used by permission, all rights reserved.)
8The TOCICO Dictionary (Sullivan et al., 2007, 17) define distribution/replenishment solution as “A pull distribution method that involves setting stock buffer sizes and then monitoring and replenishing inventory within a supply chain based on the actual consumption of the end user, rather than a forecast. Each link in the supply chain holds the maximum expected demand within the average replenishment time, factored by the level of unreliability in replenishment time. Each link generally receives what was shipped or sold, though this amount is adjusted up or down when buffer management detects changes in the demand pattern.
Usage: The largest amounts of inventory are held at a central warehouse where the variation in demand is the least. Smaller amounts of inventory are held and are replenished frequently at the end consumer location where variation in demand is the greatest. Throughput dollar days and inventory dollar days are measures used to judge the reliability and effectiveness, respectively, of each link in the chain. Transfer pricing is not used.” (© TOCICO 2007, used by permission, all rights reserved.)
1The APICS Dictionary (Blackstone, 2008, 136) defines Takt time as “Sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean production system. It is computed as the available production time divided by the rate of customer demand. For example, assume demand is 10,000 units per month, or 500 units per day, and planned available capacity is 420 minutes per day. The Takt time = 420 minutes per day/500 units per day = 0.84 minutes per unit. This Takt time means that