| What is Theory of Constraints (TOC)? | | | | Sigma project to reduce defects in it by keeping the |
| The theory of constraints helps manage complex | | | | machine in the optimal condition can be the strategy |
| systems, as well as determine the root cause of any | | | | followed). |
| problem. Contrary to Six Sigma, the approach is logic | | | | 3. Subordinating everything else to the decision made: |
| driven to analyzing the root causes. There is a | | | | The next step is to adjust or eliminate those activities |
| probability of a Six Sigma project failing due to wrong | | | | that may hinder the utilization of the constraint to its |
| selection. | | | | maximum capacity. |
| The TOC approach is to manage and identify | | | | 4. Elevating the constraint: If the system performance |
| constraints of the systems; its strength is the qualitative | | | | is not satisfactory, efforts or investment should be |
| analysis, which is useful in dealing with highly complex | | | | taken to improve or eliminate them. |
| situations. The processes are made powerful enough | | | | 5. A broken constraint: When one constraint has been |
| to deal with the variations. The Six Sigma approach to | | | | dealt with, move on to the first step of the cycle to |
| value is that of meeting the customer requirements, | | | | handle other constraints. Ensure that old policies and |
| while that of TOC is that of using the constraint to | | | | habits are evaluated in relation to the changed |
| define the maximum value for a customer in relation to | | | | circumstances. |
| the constraint. | | | | The combined utilization of Six Sigma techniques and |
| Six Sigma effectively combines with TOC. Though the | | | | theory of constraints can work wonders for the team. |
| two approaches are different to a certain extent, they | | | | In the first step of project selection, the theory of |
| can be very powerful if implemented together. Six | | | | constraint helps the Six Sigma team to choose the |
| Sigma improvement based on TOC methodology | | | | correct project without wasting Six Sigma resources |
| addresses the constraints that exist in systems, as | | | | on strong areas. |
| well as future constraints that may arise once the | | | | The Six Sigma methodology applied on the weak part |
| current ones are dealt with. | | | | will help reduce the defects and maximize quality. |
| The five basic steps of TOC are: | | | | Additionally, the theory recognizes the constraints in |
| 1. Identifying constraints: The first step is to find out or | | | | the beginning that helps avoid wastage. |
| look for any constraints if they exist in the system. | | | | Additionally, those areas that are working properly are |
| 2. Determining strategy to exploit the constraint: Once | | | | not touched and new tools and techniques used to |
| the constraints are identified find out a Six Sigma | | | | repair or replace the existing constraints. Rather than |
| project which will help minimize waste of the constraint | | | | replacement, a resolution of problem should be found, |
| by utilizing the constraint itself. | | | | as replacement would mean wastage in itself. |
| (e.g. if a machinery in use is a constraint, then a Six | | | | |