Can TOC be the catalyst for lean implementation? A case investigation

Abstract

The objective of the paper is to investigate the potential of integrating lean philosophy with Goldratt's theory of constraints (TOC) to improve operational performance in an auto component manufacturing firm. This paper proposes an integrated lean philosophy-TOC framework and its case application to enhance operational performance in an auto component manufacturing firm. Case study results indicate that the company benefited from its emphasis on operational performance enhancement by the TOC concept. Managers were able to select a continuous improvement (CI) project that had a greater impact on the bottom line performance. On the other hand, lean philosophy provided seven wastes identification and reduction techniques, to enhance customer value as well as to optimise utilisation of available resources. Further empirical investigation and robust model development on TOC-based lean implementation will guide lean practitioners to leverage lean advantages which can further be improved by integrating with other CI techniques. Integration of lean manufacturing philosophy and TOC can provide managers with an effective platform for two CI techniques to work together and create great energies. The paper reveals a typical case of a journey of enhancing operational performance by adopting lean philosophy with initiations of TOC approach.