A FORMAL ANALYSIS THE IMPLEMENTATION OF THE THEORY OF CONSTRAINTS (TOC) ACROSS FOUR PRODUCTION SYSTEM MODELS: MICRO-ENTERPRISES, AGRICULTURE, FOOD PROCESSING, AND MANUFACTURING

Abstract

In the application of the Theory of Constraints (TOC) as an approach to increase production capacity, operational efficiency, and profitability in various business sectors, ranging from Enterprises, Micro, Small, and Medium (MSMEs) to large-scale industries. In general, each research object has major obstacles (bottlenecks) that hinder production flow, such as limited machine capacity, long process time, and unbalanced production trajectory. The implementation of TOC is carried out through five core stages, namely identification of constraints, exploitation of constraints, subordination to other resources, evaluation, and continuous repetition of the improvement process. Various studies show that solutions such as adding machines, increasing working hours, reorganizing production flows, and optimizing scheduling are able to increase throughput, lower operational costs, and improve the fulfillment of market demand. The implementation of TOC has also been proven to be able to increase profits, both through production cost efficiency and increasing production capacity that is more in line with demand. Overall, this series of studies proves that TOC is an effective, applicative, and relevant approach to be applied to various types of businesses in order to achieve more optimal and sustainable operational performance.