Applying the Theory of Constraints to Increase Economic Value Added: Part 2—implementation

Smith, Malan; Pretorius, P. J.

doi:10.7166/13-2-309

Cited by 3 publications

(4 citation statements)

References 4 publications

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“…From the viewpoint of this article the most interesting usage of the method is the industrial engineering approach [13,14,15,16,17]. We can distinguish many types of constraints, for example [2,11,18,19,20,21,22]:…”

Section: Theory Of Constraintsmentioning

confidence: 99%

Application of the Theory of Constraints for Continuous Improvement of a Production Process-Case Study

Wolniak¹,

Skotnicka-Zasadzień²,

Zasadzień³

2018

dtssehs

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Abstract. The paper presents the example of practical application of theory of constraints. We use this conception to improve production process in the case of company producing electrical equipment for the mining industry. During the observation and on the basis of the ERP system used in the company as well as process mapping, the area in which the so called "bottleneck" problems are present was determined according to the theory of constraints. Analysis of the "bottleneck" using theory of constraints was carried out in the Paint Shop department, as this is the department where the biggest financial losses are generated and the entire painting process inefficient. The aim of the paper is to analyze of the "bottleneck" using theory of constraints in the production industry to improve the process.

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Section: Theory Of Constraintsmentioning

confidence: 99%

Application of the Theory of Constraints for Continuous Improvement of a Production Process-Case Study

Wolniak¹,

Skotnicka-Zasadzień²,

Zasadzień³

2018

dtssehs

View full text Add to dashboard Cite

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“…[1], [9], [10], [12], [13], [14], [17], [19] , [20] [21] and [24]). Implementation of a TOC based management approach will be discussed in part two of this article [23]. When the company decides to man-age according to TOC principles and implements the decision (90), then the company continuously improves the measurements T, I and OE (95).…”

Section: Figure 1 Applying Toc Measurements Future Reality Treementioning

confidence: 99%

“…Injection 90 is the act of convincing management to decide to manage according to TOC principles, injections 190, 240, 250 and 280 are the formulation of a new company strategy. How to implement these injections in a company, is explained in the second part of the paper [23].…”

Section: Creating the Futurementioning

confidence: 99%

Applying the Theory of Constraints to Increase Economic Value Added: Part 1—theory

Smith

Pretorius

2012

The South African Journal of Industrial Engineering

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This article, presented in two parts, explains how to apply the Theory of Constraints (TOC) in a business to increase Economic Value Added (EVA). The first part deals with the theory, while the second part deals with the implementation. The goal of a business, the measurements of the goal and the priority of the measurements are discussed. The future reality of a company which implements TOC principles is shown through cause and effect to lead to an increase in EVA. The increase i n EVA is caused by an increase in return on investment and a reduction in the cost of capital. The actions the company must take to increase EVA is presented.

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“…Goldratt [6] states that "the Evaporating Cloud method does not strive to reach a compromise solution, rather it concentrates on invalidating the problem itself…" Rather than to try and find a compromise between long-term sustainability and short term profitability, one need only to realise that both these conditions are needed, e.g. improved service levels will not only ensure long-term sustainability [C], but the increased market share will also boost profitability [B].…”

Section: Figure 1: the Evaporating Cloud Diagram For The Taxi Industrymentioning

confidence: 99%

A Call for the Radical Restructuring of the Mini-Bus Taxi Industry in South Africa

Fourie

Pretorius

2012

The South African Journal of Industrial Engineering

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This article examines the case for the formalisation of the mini-bus taxi industry in South Africa by applying the Theory of Constraints (TOC) thinking processes to the current situation. The paper endeavours to answer the question whether formalisation is essential for the survival of the industry. The most pressing issues in improving the performance of the industry is also highlighted, which presents a guide to investment decisions by government. Finally, the article comments on the government's proposed recapitalisation programme. OPSOMMINGIn hierdie artikel word die formalisering van die mini-bus taxibedryf in Suid-Afrika ondersoek met behulp van die Teorie van Knelpuntbestuur (TVK) denkprosesse. Die artikel stel dit ten doel om die vraag te beantwoord of formalisering noodsaaklik is vir die voortbestaan van die industrie. Verder word die mees kritieke aspekte vir verandering van die industrie uitgelig as riglyn vir investering deur die regering. Laastens lewer die artikel kommentaar op die regering se voorgestelde herkapitalisasie program.

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Applying the Theory of Constraints to Increase Economic Value Added: Part 2—implementation

Cited by 3 publications

References 4 publications

Application of the Theory of Constraints for Continuous Improvement of a Production Process-Case Study

Application of the Theory of Constraints for Continuous Improvement of a Production Process-Case Study

Applying the Theory of Constraints to Increase Economic Value Added: Part 1—theory

A Call for the Radical Restructuring of the Mini-Bus Taxi Industry in South Africa

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