11 - Supply Chain Management

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McGraw Hill Professional, Apr 9, 2010 - Business & Economics - 1216 pages
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The definitive guide to the theory of constraints

In this authoritative volume, the world's top Theory of Constraints (TOC) experts reveal how to implement the ground-breaking management and improvement methodology developed by Dr. Eliyahu M. Goldratt. Theory of Constraints Handbook offers an in-depth examination of this revolutionary concept of bringing about global organization performance improvement by focusing on a few leverage points of the system. Clear explanations supplemented by examples and case studies define how the theory works, why it works, what issues are resolved, and what benefits accrue, and demonstrate how TOC can be applied to different industries and situations.

Theory of Constraints Handbook covers:

  • Critical Chain Project Management for realizing major improvements in delivering projects on time, to specification, and within budget
  • Drum-Buffer-Rope (DBR), Buffer Management, and distribution for maximizing throughput and minimizing flow time
  • Performance measures for applying Throughput Accounting to improve organizational performance
  • Strategy, marketing, and sales techniques designed to increase sales closing rates and Throughput
  • Thinking Processes for simple and complex environments
  • TOC methods to ensure that services actions support escalating demand for services while retaining financial viability
  • Integrating the TOC Thinking Processes, the Strategy and Tactic Tree, TOC measurements, the Five Focusing Steps of TOC, and Six Sigma as a system of tools for sustainable improvement

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The Current Practice of Managing Supply Chains
Problems with the Current System
The TOC WayThe DistributionReplenishment Solution
Some of the Finer Points in Managing the TOC DistributionReplenishment Solution
Managing Seasonality in the TOC DistributionReplenishment Model
Implementing the TOC DistributionReplenishment ModelHow Can Software Help and Is It Really Needed?
Testing the Solution on a Smaller Scale
Managing the TOC Buyin Process
Actual Results of the TOC DistributionReplenishment Solution
About the Author

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About the author (2010)

Amir Schragenheim, MBA, holds TOCICO certifications in Supply Chain Logistics, Finance & Measures, Project Management, and Business Strategy. He is the President of Inherent Simplicity, a software firm specializing in TOC software for Production & Distribution environments. Inherent Simplicity is the main software supplier to Goldratt Consulting, Eli Goldratt’s consulting firm, in their Viable Vision strategic projects.

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