Practices and Performance in Constraints Management Production Planning and Control Systems

Abstract

This chapter provides first a literature review of the characteristics of production systems operating according to the principles of Theory of Constraints (TOC). The analysis is conducted by a comparison of these characteristics with those of three well-known production systems, namely Dispatching, Kanban and Daily Rate. The literature review highlights that the most significant differences are pertinent to the third level of the manufacturing planning and control system, the so-called production executive control or shop floor control sub-system. An interpretative framework for discussing the distinguishing characteristics of TOC in production management is finally proposed. The second part of the chapter is dedicated to study the relationship between TOC production and operational performance of manufacturing plants. The study is based on data collected from 61 manufacturing plants located in Europe through an extensive questionnaire survey. Analysis of variance technique and regression models have been employed to test the research hypotheses. The results detect many differences and similarities in adoption of TOC practices across the plants and suggest that manufacturing managers should consider adopting some TOC practices instead of others. In particular the drum–buffer–rope methodology, the development of a Master Production Schedule based on constraints and the use of Non-constraint resources with excess capacity are among the most important practices to enhance competitive performance of manufacturing plants.