TOC-P10

TOC-P10
PGDM 2010-12: Term-VI

Theory of Constraints (TOC)
1.5 credit

Course Facilitator: Arun Kumar Paul *
(arun_kr_paul@yahoo.com; 099343 05506 )

A. Programme Objective: Eliyahu Moshe Goldratt (March 31, 1947 - June 11, 2011) was an Israeli physicist who eventually became a business management guru. He was the originator of the Optimized Production Technology, the Theory of Constraints (TOC), the Thinking Processes, Drum-Buffer-Rope, Critical Chain Project Management (CCPM) and other TOC based thinking derived tools.

The foundation of the Theory of Constraints is that, at any point in time, the performance of a system or organisation is limited by one, or very few things called “constraints”. In order to get the best performance from the system or organization, one need to understand what the constraint(s) are and ensure that the performance at the constraint is maximised whilst also ensuring everything else in the system supports this maximization effort. The simple but powerful concepts of TOC can be applied to Project Management, Supply Chain, Marketing & Sales, Finance & Accounting and Strategic Planning of an organization.

This course is useful for both fresher and practicing professional from industry. After going through the ten sessions one will have fairly good idea about the basic concepts of TOC, the theoretical framework & the tools, and their application potentials in varied business environments.

B. Provisional Session Plan

Session No.	Topic	Remark
1	*Review of relevant concepts* · Capacity and its measures · Efficiency, effectiveness, utilization · Local vs global optima · Normal, b distributions · Inventory – asset or liability *Introduction to TOC*	.
2	*Examples of ‘Constraints’* *Five focusing steps - DBR* *Dealing with production bottlenecks*
3	*A ‘balanced system’ – dice game*
4	*Local vs global optima – a numerical example***
5	*Measurement & accounting system*
6	*Thinking process – basic tools*
7	*Concepts of CCPM & applications*
8	*TOC concepts in Operations Mgmt.*
9	*Group presentation on ‘The Goal’* *Final ‘wrap up’*
NIL	*Mid-Term & End-Term – schedule to be decided***

C. References:
· The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt and Jeff Cox [to be distributed to the students enrolled in the course]
· Critical Chain by Eliyahu M. Goldratt
D. Evaluation Methodology & Components (for the entire course):
1. Class Room Attendance : 10 %
2. Class participation , Discussion (only relevant ones!) : 10 %
3. Mid term (Individual) : 15 %
4. Group Work : 20 %
5. Final exam (Individual) : 45 %

TOTAL 100 %

Note

It is expected that the students enrolled for the course will attend ALL the sessions. In case a student has to miss any session, at least one day advance information through email is mandatory. It is entirely the student’s responsibility to make up for the missed session and it MUST be done before attending the next session.

E. Group Work: Presentation in the class on the chapter allotted from ‘The Goal’. (Group formation & chapter allocation will happen in the first session)

F. Grading: (To follow ‘Student’s manual’)

F	D	D+	C	C+	B	B+	A	A+
		>35-45	>45-55	>55 -65	>65-73	>73-80	>80-85	> 85

Facilitator is Mechanical Engineer from IIT Kharagpur, pursuing fellowship from XLRI, Jamshedpur. He has work experience as project manager for capital projects in Tata group of Companies. He has worked with experts from McKinsey & Co. on improving ‘opex and capex excellence’. He is trained as six-sigma resource as well as in TOC/CCPM implementation and has practical experience of deployment of the same. He has affiliation with professional bodies, has publications in journals and has teaching involvement with B’schools such as XLRI and Praxis.

Created By: Debasis Mohanty on 12/07/2011 at 10:13 AM
Category: PGDM-II Doctype: Document

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