Theory of Constraints Handbook
About the Editors
JAMES F. COX III, PhD, CFPIM, CIRM, holds TOCICO certifications in Production and Supply Chain, Performance Measurement, Critical Chain, Strategy and Tactics, and Thinking Processes. He is a JONAHs JONAH, Professor Emeritus, and was the Robert O. Arnold Professor of Business in the Terry College of Business at the University of Georgia. He has conducted numerous academic and practitioner Theory of Constraints workshops and programs on performance measurement, production, supply chains, management skills, project management, and the thinking processes.
Dr. Coxs research has centered on the Theory of Constraints for over 25 years. He has authored or co-authored three books on TOC and almost 100 peer reviewed articles. He was the co-editor of the APICS Dictionary, 7th, 8th, 9th, 10th, and 11th editions, and an invited contributor on the topic of Constraints Management to the Production and Inventory Management Handbook.
Dr. Cox has been a member of APICS for over 30 years, holding chapter, regional, and national offices. He served on the APICS Board of Directors for four years with two years as VP of EducationResearch and served on the APICS Educational and Research Foundation Board of Directors for nine years with four years as President. He was a founding member and elected to the founding Board of Directors of the Theory of Constraints International Certification Organization (TOCICO), a certification organization founded by Dr. Eli Goldratt. He later served as Director of Certification responsible for implementing TOCICOs certification program.
Now retired, JOHN G. SCHLEIER, Jr. was President and Chief Operating Officer of the Mortgage Services Division of Alltel, Inc., Executive Vice President of Computer Power, Inc., and Director of Office Systems and Data Delivery for IBM. In these positions, he directed major software development projects, sales administration, and financial functions. He was also Director of Information Systems for IBMs General Systems Division, where he provided oversight for Development Engineering, Manufacturing, and Headquarters systems. He developed information systems for manufacturing, sales, and IBM strategic planning functions and was winner of an IBM Outstanding Contribution Award. He was a regular lecturer on Strategic Planning at IBM Executive Briefing Centers over a period of 15 years, speaking to CEOs and top executives of major corporations. He frequently took consulting assignments dealing with complex project management issues around the world.
He served on the faculty of The University of Georgia College of Business Administration as IBM Executive in Residence and later as Executive Professor of Management, serving on both the Management Information Systems and Production Operations Management faculties. Mr. Schleier holds TOCICO certification in all disciplines. He co-authored Managing Operations: A Focus on Excellence, a college text emphasizing TOC concepts (North River Press, 2003). He also published Turkey Tales, a childrens book (Tate Publishing, 2010).
Theory of Constraints Handbook
Edited by
James F. Cox III
John G. Schleier, Jr.
Copyright 2010 by James F. Cox, III and John G. Schleier, Jr. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.
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Contents
Aggregate Stock at the Highest Level in the Supply Chain:
The Plant/Central Warehouse (PWH/CWH)
1 For Appendices A and C to G see http://www.mhprofessional.com/TOCHandbook.
Preface
Beginning in the early 1980s with the OPT software, a software package for scheduling manufacturing operations, Dr. Eliyahu M. Goldratt started applying the concepts of the hard sciences to problems in organizations. Later, with the publication of
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