Application of simulation models based on the theory of constraints in production

Abstract

The Theory of Constraints enables to identify difficulties, called bottlenecks, in production processes. It seeks to find an optimal solution from a thorough and systematic perspective to achieve the business objective, generating profit. This work aims to show the way the systematic process of the Theory of Constraints can be replicated in a simple way by means of modeling and simulating the behaviors that circumscribe this theory. In this case, simulation is the selected method to exemplify and demonstrate the counter-intuitive approach of this theory. The latter has been described so because companies still consider inventories and accumulation to be fundamental parts of profit generation in the organizations. In general terms, the simulation model demonstrated that downscaling inventories in a production chain reduces operating expenses, thus generating a greater cash flow in the company.

Keywords

• simulation
• models
• software
• method
• manufacturing
• production