Implementing Theory ofConstraints in an Indian SME: A Bearing Rings Manufacturing Machine Shop

Abstract

The Goal by Goldratt and Cox (1984) inspiring study, ‘Theory of Constraints’ has merged from simple production scheduling technique into management philosophy with best practices in profit optimization in operations management. This research work presents a case study of ‘Theory of Constraints’ in an Indian SME in a bearing races manufacturing machine shop. Machine shop is equipped with state of the art with CNC turning machines. In this machine shop, finish turned parts are produced and delivered to bearing OEMs in India and exported to European and Latin American countries. The machine shop described in this research work is managed with traditional problem-solving methods, within the framework of standard operating procedures. Plant management applied the TOC’s focusing steps and used the operations tools, such as drum-buffer-rope and buffer management to elevate the system. Methodology used is as per Eliyahu M Goldratt, the thinking process tools of current reality tree and evaporating clouds were used to identify, find root causes and resolve the issues. The implementation achieved the desired results; however, some unresolved issues are well captured in this study. The implementation of TOC was instrumental in generating benefits in throughput, inventory, operating expenses and profits. Further management was keen to adopt TOC in non-manufacturing functions as a continuous improvement methodology.