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Credits	Three (3)		Program	PGDM II
Faculty Name	Arun Kumar Paul		Academic Year & Term	2012-13, Term VI

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 resources called “constraints”. In order to get the best performance from the system or organization, one need to understanding what the constraint(s) are and ensure that the performance at the constraint is maximised whilst also ensuring everything else supports this maximisation. The simple but powerful concepts of TOC can be applied to operations management, project management, supply chain, marketing & sales, finance & accounting and even in strategic planning of an organization.
This course, with a mix of theoretical inputs, ‘class room games’ and case discussions, is useful for both fresher and students with industry experience. After going through the coursework one will have fairly good idea about the basic concepts of TOC, the theoretical framework and the tools & their application potentials in varied business environments. The students should be able to:

Session No.	Topic	Remark
1, 2	Introduction to TOC · Capacity and its measures · Efficiency, effectiveness, utilization · Normal, b distributions · Inventory – asset or liability
3, 4	Examples of ‘Constraints’ Five focusing steps - DBR Dealing with production bottlenecks
5, 6	A ‘balanced system’ – dice game
7, 8	Local vs global optima – numerical examples
9,10	Measurement & accounting system
11,12	Thinking process – basic tools
13,14	Concepts of CCPM & applications
15,16 17,18	Application of TOC concepts in Functional areas - Operations incl. services - Supply chain management
19, 20	Group presentations Final ‘wrap up’
NIL	Mid-Term & End-Term – schedule to be decided

List of Books

· The Goal: A Process of Ongoing Improvement by E. M. Goldratt and Jeff Cox
· Critical Chain by Eliyahu M. Goldratt
· Its not luck by Eliyahu M. Goldratt
· Necessary But Not Sufficient by E. M. Goldratt, E. Schragenheim & C. A. Ptak.
· Lean Thinking – Banish waste and create wealth in your corporation by Womack & Jones
· Lean Solutions – How companies and customers can create value and wealth together by Womack & Jones

Reading List

R-1. The Bottleneck Conundrum – Peter L King
R-2. Conceptual foundations for the TOC – Rik Berry , Lola B Smith
R-3. Bottleneck Management: Theory & Practice – Chakravorty & Atwater
R-4. What is constraining your innovation – Michael A Dalton
R-5. Introducing TOC in Hitachi Tool Engineering – Umble & Murakami
R-6. Value chain enhancement for the oil refinery industry – Rosolio, Geri
R-7. Tutorial on PM with TOC perspective – J H Blackstone et al.
R-8. Critical look at CCPM – T Raz et al.
R-9. Robust & reactive project scheduling – W. Herroelen & R. Leus
R-10. Why critical chain would smell less sweet – Dan Trietsch
R-11. Synchronous Solutions – Throughput Accounting Fundamentals
R-12. Optimal product mix decisions based on TOC – R. Souren et al.
R-13. Fast guide to OEE – Vorne Industries Inc., USA
R-14. Application of VSM, Indian case study – D Seth & V Gupta
R-15. Constraint management: recent advances – M Gupta.

from books ‘The Goal’ & ‘The Critical Chain’ and from selected Readings.

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