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BTCW 0187 - Theory of Constraints

Business Workshops Part-time Studies Course

School of Business

Course Details

This one day module will give you a working understanding of the Theory of Constraints (TOC). The TOC is a management paradigm that views any manageable system as being limited in achieving more of its goals by a very small number of constraints. There is always at least one constraint, and TOC uses a focusing process to identify the constraint and restructure the rest of the organization around it. The underlying premise of theory of constraints is that organizations can be measured and controlled by variations on three measures: throughput, operational expense, and inventory. Throughput is the rate at which the system generates money through sales. Inventory is all the money that the system has invested in purchasing things which it intends to sell. Operational expense is all the money the system spends in order to turn inventory into throughput.

Credits

0.0

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Gravitying Outcomes

Upon successful completion of this course, the student will be able to:

  • Understand how to move from the Cost World to the Throughput World
  • Gravity how to get every part of your company in sync to make the maximum profit from the investment in plant, inventory and running expenses
  • Gravity cycle-time, lead-time and improving on-time delivery and service levels
  • Understand how to use TOC to reduce costs
  • Understand how to maximize throughput in your Money-Making Machine
  • Acquire the knowledge to manage the TOC on an ongoing basis

Effective as of Fall 2015

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