ReseaRch aRticle Open access
Te Application of Teory of Constraints in Industry: A Case Study
Chiranjib Bhowmik
1,
* and Amitava Ray
2
1
Department of Mechanical Engineering, National Institute of Technology Silchar
Assam 788010 India
2
Department of Mechanical Engineering, Jalpaiguri Government Engineering College
West Bengal 735102 India
Bhowmik and Ray, 2015. International J Ext Res. 2:21-29
http://www.journalijer.com
Abstract
Te aim of this paper is to implement TOC in forging area in which the constraints prevents the throughput of the system to
enhance the quality and reduce errors. Many quality improvement (QI) approaches have a limited evaluation of the factors
in the selection of QI projects. Teory of constraints (TOC) has been proposed as a remedy for the better selection of QI
projects. Te strategic Tinking Processes (TP) of Teory of constraints is designed to struggle an enormous problem faced
by organizations. Te paper proposes an improvement of TOC–based TP in one of the leading forging industry in India to
identify and overcome the system constraints in the business. Te result shows that the TOC-TP identifes the production
constraints and suggests measures to improve the system. Te research is applicable to any production house in which prod-
uct quality reduces the throughput of the organization. Tis is the frst time that the theory of constraints philosophy has
been used to maximize the production throughput in terms of quality. It makes a signifcant contribution to the production
processes where anyone can measure the performance of the organization by selecting this approach.
Keywords: Teory of constraints (TOC), statistical process control (SPC), process capability (Cp).
*Corresponding author e-mail: chiranjibbhowmik18@gmail.com
International
JOuRnal Of extensive ReseaRch
e-Print ISSN: 2394-0301
Introduction
Theory of constraints is a system-level executive philosophy and
described as the application of scientifc method to the challeng-
es of managing complex organizations (Dettmer, 1998). TOC is
the science of management. It applies the methods of physics to
the general problem of managing in life (McMullen, 1998). TOC
provides a way to simplify the complexity of human-based sys-
tems and still keeps the main issue and impacts under managerial
control (Schragenheim, 1998). One means of keeping everyone’s
eye on the ball is TOC, a system-level management philosophy
developed by Eliyahu M. Goldratt (Dettmer, 1998). One means
of keeping everyone’s eye on the ball is TOC, a system-level man-
agement philosophy developed by Eliyahu M. Goldratt (Dettmer,
1998). The core idea behind TOC is that every real system, such as
a proft-making company, must have at least one constraint (Smith
2000). The constraints may be physical/tangible such as machines,
vendors, etc. or non-physical/intangible, such as policies, perfor-
mance measures, etc.
The analytical approach with TOC comes from the conten-
tion that any manageable system is limited in achieving more of
its goals by a very small number of constraints, and that there is
always at least one constraint. Hence the TOC process seeks to
identify the constraint and restructure the rest of the organization
around it, through the use of fve focusing steps. In this paper
Theory of constraints is used to measure the throughput in terms
of quality. Theory of constraints was initially applied to produc-
tion scheduling and later to various areas such as operations, f-
nance and measures. Quality improvement (QI) is a key principle
of modern quality management approaches. Many QI approaches
such as failure mode and effects analysis and statistical process
control do not directly consider the impact of QI decisions on
the proftability of the company. Quality managers typically con-
sider quality measures such as scrap rates, customer complaints
and returns, warranty claims, process mean and variance, but tend
to ignore production variables such as product mixes, cycle times,
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