Leverage your improvement efforts

ERP Software and The Theory of
Constraints
by Tom Miller

ERP systems will help a business by providing a common set of tools that can be used across an enterprise to plan for and control the execution of actions at each resource. That is a big definition and ERP systems tend to be big, expensive, and somewhat complicated.

The Theory of Constraints, or TOC, is often seen as an alternative to ERP. TOC assumes any organization exists to achieve a goal. It also assumes that there are a small number of constraints in any organization that hinder progress toward that goal achievement. Those constraints are usually equipment, people, or policies. Any of us can look around our business and see more than a few constraints, many of them are hindrances but do not truly limit our ability to meet our goal.

Scheduling in an ERP system begins with a due date of an order and tries to start as late as possible and still meet the date or it starts with today and tries to complete the work as soon as possible, often well before the due date. Scheduling through a plant uses production rates and time or units of production capacities to schedule each resource.

Click here to read the article »

The Reason for Technology
by Dr. Eliyahu M. Goldratt

The proof that any technology is necessary but not sufficient is demonstrated on two extreme examples: MRP and ERP. 

FREE viewing for 24 hours
download and view offline
click here »
FREE viewing until March 7th
View online, click here »
This entry was posted in Necessary & Sufficient Series, TOC Weekly 95 and tagged , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *