The Theory of Constraints
Fundamental Exam Review
Overview the TOCICO Exams
James R. Holt, Ph.D., PE
Professor
Engineering Management
Washington State University-2010
jholt@[Link]
[Link]
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TOCICO
The Theory of Constraints International
Certification Organization [Link]
Certifies TOC Knowledge at
Fundamental Knowledge (Basic understanding of
TOC as it applies to ALL applications. Can Pass
in Segments as your TOC knowledge grows.)
Application Level (Advanced understanding
sufficient to apply and teach others)
Implementer Level (Highest Certification
Individual has proof of successful
Implementations).
Washington State University-2010
TOCICO Certification Areas
The Theory of Constraints International
Certification Organization
Fundamentals
Application areas
Supply Chain Logistics
Project Management
Finance and Measures
Thinking Processes
TOC in Education
Holistic Business Strategy
Washington State University-2010
TOCICO Segmented Fundamentals Exam
Fundamentals Certificate
Multiple Choice Case Study
(Identify, Exploit, Subordinate, Elevate, Go to Step 1)
Fundamentals
Certificate of
TOC
Philosophy
Inherent
Potential
Inherent
Simplicity
Inherent WinWin
Five Focusing
Steps
Three
Fundament
als
Certificate
of
TOC
Thinking
Processes
Conflict
Cloud
Negative
Branch
Ambitious
Target
Fundamentals
Certificate of
Fundamentals
Certificate of
TOC
Applications
TOC Finance
& Measures
DBR
Project
Management
T, I, OE
PQ Type
Problem
Replenishme
nt
Washington State University-2010
TOCICO Certification Exams
Certification Steps
1.
Fundamental Exams
TOC Philosophy
Thinking Process
TOC Measures
Applications (one of):
Drum-Buffer-Rope
Project Management
Distribution
F
U
N
D
A
M
E
N
T
A
L
2,
Applications Exams
3.
Implementation Cases
Supply Chain Logistics
Supply Chain Logistics
Project Management
Project Management
Finance and Measures
Finance and Measures
Thinking Process
Thinking Process
Business Strategy
E
X
A
M
Fast Track Certification Process
for TOC Experts
Validated Application Case
Exams Available
Worldwide On Demand (FE Soon On-Line)
Washington State University-2010
TOCICO Application Exams
Applications Level Exams
Supply Chain Logistics
Project Management
Finance and Measures
Thinking Process
TOC in Education
Implementation Level Case Submissions
Complete (beginning to end) documentation of
implemented case (with verification)
Washington State University-2010
TOC Improvement Approach
1.
2.
3.
4.
5.
Improve the Flow in Operations (and Service
Areas):
Build a Decisive Competitive Edge
Capitalize on the Competitive Edge
Elevate Capacity only when needed
Institutionalize the Process
When Formal Organization becomes the
Informal
Remove Engines of Disharmony
Washington State University-2010
Flow Focus for Applications
Exams
Plan
Application
Exam
Execu
te
Establi Establi
sh
sh
Releas Buffer(
e
s)
Step 1
Control
Improv
e
Single Active Applied POOGI
Priority Buffer Buffer Processes
System Mgmt Analysi
s
Step 2
Washington State University-2010
Step 3
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Fundamentals Exam
Includes Key Topics about:
Theory of Constraints Philosophy
TOC Thinking Process Basics
TOC Applications (at least one area)
Operations (Drum-Buffer-Rope)
Project Management (CCPM)
Distribution (Replenishment)
TOC Finance and Measures
TOC Business Strategy (Holistic View)
These sub topics with study and practice prepare
for the Fundamentals Exam Certification
Washington State University-2010
Topics in TOC Philosophy
Concept of the Weak Link in the Chain
Five Focusing Steps
All conflicts have a solution
Solutions are often counter intuitive
Systems are simple
There is a Core Problem
People are good
Everything is harmonious
Every one can improve
Growth and Stability can both be achieved at
the same time (Ever flourishing)
Washington State University-2010
10
Topics in TOC Thinking Process
Cause and Effect
Evaporating Cloud
Surfacing Assumptions
Invalidating Assumptions
Negative Branch Reservation
Overcoming Obstacles (PRT)
Categories of Legitimate Reservation
Washington State University-2010
11
Topics in TOC Operations
Locating Capacity Constrained Resource
Sizing Buffer (50% of existing to start)
Rope Control (release)
Buffer Management
Simplified- DBR (finished goods buffers
controlling release)
Make to Order
Make to Stock
Washington State University-2010
12
Topics in TOC Projects
Plan the Network (PRT)
Aggressive Schedule (50% durations)
Strategic Buffers (50% PB & FB)
Daily Reporting
(Time Remaining? What are you awaiting?
How can we help you?)
Fever Chart Concept
Buffer Management
Choke and Release
Sequencing mechanism
Resource alignment
Washington State University-2010
13
Topics in TOC Replenishment
Know components of Replenishment time
Understand Plant Warehouse
Understand Inventory Capacities of Plant
Warehouse and Regional Warehouses
Daily Reporting of Sales
Frequent Delivery
Buffer Management Actions
Beneficial Impact of Distribution Solution on
the Plant
Washington State University-2010
14
Topics in TOC Finance & Measures
Purpose of Finance (invest in improvements)
Purpose of Measures (keep everyone focusing on the
constraint and subordination)
Decide on Investment decision (make/buy, equipment
purchase)
Impact of poor quality/delivery on system
Impact of poor inventory practices on the system
Financial Buffer Management
T, I, OE, Cash Flow, Profit, Return on
Inventory/Investment
TDD, IDD
Throughput Accounting worksheet
Washington State University-2010
15
Topics in TOC Business Strategy
Selecting the Core Problem of the Business
Determining the Direction for the competitive
advantage
Deciding how to control the release
Establishing correct buffers
Determining the single priority system
Active Buffer Management
Analytical Buffer Analysis
POOGI (planned growth and stability of operations
and management)
Washington State University-2010
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