Theory of Constraints (TOC) Production and Manufacturing Performance

Abstract

This paper is based on an empirical study of the relationship between Theory of Constraints (TOC) production and operational performance in manufacturing plants. The study uses a survey questionnaire to collect data from a sample of 61 European firms which have implemented the TOC approach. Analysis of variance (ANOVA) 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 countries 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.