Theory of Constraints Training Pack

The Theory of Constraints (TOC) is a management philosophy developed by Eliyahu M. Goldratt that is designed to help organizations maximize their profits by identifying and eliminating bottlenecks that prevent them from reaching their full potential. It is based on the idea that every organization has a limited number of resources, such as time, money, and personnel, and that these resources are constrained by certain factors that limit their ability to produce results. By identifying and addressing these constraints, organizations can increase their efficiency and productivity and achieve their desired outcomes.

Training in TOC typically involves learning about the principles and tools of the theory, including the Five Focusing Steps, the Thinking Processes, and the Drum-Buffer-Rope (DBR) scheduling system. Participants in TOC training programs may also learn about how to apply these concepts to real-world business situations, including how to identify and eliminate bottlenecks, how to set and achieve goals, and how to measure and improve organizational performance.

Below is a training deck/game created to help you – the Lean Leader – train your team on the identification of bottlenecks and how to address the constraints as you move closer to optimizing your production or manufacturing process.

This training kit is designed to give your team a hands-on experience with random process variation.

Supplies / Materials

• 3 Sets of Dice
  • 1 White – to match white ping pong balls
  • 1 Orange – to match orange ping pong balls
  • 1 Blue – to represent Overtime
• 9 Containers or bins
  • 1 for each of the 6 processes
  • 1 for the raw materials (before process 1)
  • 1 to receive “shipped” ping pong balls
• 2 Flip chart sheets
  • 1 to draw the “Shipped” KPI and MTD Variance KPI
  • 1 to track “Bonus” points

Participants – for Role Play

• 6 Supervisors – Manage each operation (bowl)
• 1 General Manager – Controls cost through overtime and supermarket (inventory) approvals
• 2 Manufacturing Managers – each one manages 3 supervisors
• 1 Customer – responds positively or negatively to throughput/delivery of each roll

Game Setup

• 2 Bins of Raw Materials (ping pong balls)
• 6 Stations = 1 Person per 1 Process Container + 1 Die
• 3 Balls (Beginning Inventory) at each Process (in each bowl to start)

• 6 Flip Chart Sheets (or printed 11×17)  – 5 Scoreboards and 1 Bonus

The accompanying Excel sheet contains printable examples on 11″x17″ size paper.

Game Play – 7 Rounds (10 rolls each process) + Bonus Round

Round 1 – Basic

Rules

1. Each person will roll their die 1 x 10
2. The number rolled represents production for the day
3. They will pass that number of balls to the next process −If there are not enough balls in their inventory then they pass only the number available
4. The scorekeeper will write down the actual shipments (chart 1) and the cumulative shipments (chart 2)

Observations

1. Note the random variation in inventory levels
2. Note the strain on flow through the value stream
3. Note the inconsistency of shipments (chart 1)
4. Note the increasing variance to target (chart 2)

Round 2 – Improvement #1 – Add 1 Inventory Supermarket

Rules

1. The team will decide (majority wins) to place one supermarket of inventory( 3 days worth or 9 balls) at a strategic location between any two processes
2. Each person will roll their die 1 x 10
3. The number rolled represents production for the day
4. They will pass that number of balls to the next process −If there are not enough balls in their inventory then they pass only the number available
5. The scorekeeper will write down the actual shipments (chart 1) and the cumulative shipments (chart 2)

Observations

1. Note the reduction of variation near the supermarket
2. Note the strain on flow through the value stream
3. Note the inconsistency of shipments (chart 1)
4. Note the increasing variance to target (chart 2)

Round 3 – Firefighting #1 – Add Labor Sharing

Rules

1. Setup the game the same as the previous round
2. Each person will roll their die 1 x 10
3. The number rolled represents production for the day
4. They will pass that number of balls to the next process
   • If there are not enough balls in their inventory then they pass only the number available
   • A process that has excess inventory can choose to not roll a turn and loan labor (forfeit their roll and pass their die to another process) that needs an additional roll to be able to move more inventory
5. The scorekeeper will write down the actual shipments (chart 1) and the cumulative shipments (chart 2)

Observations

1. Note the reduction of variation near the supermarket
2. Note the strain on flow through the value stream
3. Note the inconsistency of shipments (chart 1)
4. Note the increasing variance to target (chart 2)

Round 4 – Firefighting #2 – Add Overtime (3 Blue Die – Max per round)

Rules

1. Setup the game the same as the previous round
2. Each person will roll their die 1 x 10
3. The number rolled represents production for the day
4. They will pass that number of balls to the next process
   • If there are not enough balls in their inventory then they pass only the number available
   • If there are not enough balls in their inventory then they pass only the number available
   • Another process that has excess inventory can choose to not roll and loan labor (forfeit their roll and pass their die to another process) that needs to move more inventory
5. If the roll results in a number too low, the participant can request (from the manager) to use an available Overtime roll to make the production rate for the round
   1. There is a maximum of 3 Overtime rolls per round
6. The scorekeeper will write down the actual shipments (chart 1) and the cumulative shipments (chart 2)

Round 5 – Merit / Bonus Round

Rules

1. Same as the previous Round
2. Each person starts out with a $50 Bonus
3. The scorekeeper subtracts the following penalties from each person during the round:
   • Overtime – $10.00
   • Not hitting Daily Rate – $20.00
   • Greater than 3 balls of ending inventory – $1.00
4. The winner is the player with the most bonus points

Observations

1. What changed?
2. Did anything improve?
3. Is Labor sharing or Overtime sustainable or ideal?

Summary

This training event is an opportunity to review the key concepts and principles of TOC and how they can be applied in participants’ organizations.

At the conclusion of the training, participants should have a clear understanding of the TOC philosophy and how it can be used to identify and eliminate bottlenecks that prevent organizations from reaching their full potential. They should also have the knowledge and skills to set and achieve goals, measure and improve organizational performance, and apply the TOC tools and techniques to real-world business situations.

Participants may have the opportunity to share their thoughts and experiences with the TOC philosophy and how they plan to use it in their organizations. They may also have the opportunity to ask questions and seek guidance from the instructor and other participants.