Operations Management Theory of Constraints

Objective: Apply the theory of constraints (TOC) to a sample case problem.

Method:
1. Use the concepts of the theory of constraints (TOC) to diagnose and solve the following problem.
2. Prepare a written summary detailing your findings and summarizing your recommendations. (this will require some math)

Case Details
The production system detailed on the following page is having problems.
WIP is piling up all over the factory.
Orders are going out late.
All departments are requesting overtime to catch up, but even when overtime is authorized for all departments the situation does not improve.
When overtime is authorized the backlogged orders are filled, but WIP seems to grow adding to the confusion and congestion on the floor which seems to generate additional request for overtime to catch up and clear out WIP and late new orders.
What can be done?
The company has no money for capital investments (new equipment) but is willing to consider implementing recommendations that do not involve capital spending.