Unit of competency Outline

Date retreived
22/07/2026 7:27 AM AWST

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Apply the theory of constraints

Apply the theory of constraints

Unit of competency
National Code
MSS405024A
State Code
WD561
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
02/05/2012
View on TGA
State Implementation and Classification
Approved Date
13/06/2014
Field of Education
080317 - Quality Management
Original Release Date
13/06/2014
Nominal Hours
40
Description
This unit of competency covers the skills and knowledge required to apply the theory of constraints to organisational change.
Notes
Elements and Performance Criteria
1 Identify the system constraint and throughput
  • 1.1 Identify goals and objectives of the organisation
  • 1.2 Identify systems, processes and products to be examined
  • 1.3 Determine throughput of steps within the system
  • 1.4 Identify the capacity constrained process
  • 1.5 Determine optimum throughput of capacity constrained process (drum)
  • 1.6 Determine maximum system throughput based on the capacity constrained process
2 Optimise constraint throughput
  • 2.1 Determine optimum accumulation (buffer) before capacity constrained process
  • 2.2 Determine appropriate supply schedule and trigger (rope) for buffer
  • 2.3 Implement buffer and rope to match drum
  • 2.4 Monitor capacity constrained process and system to ensure optimum throughput
  • 2.5 Take required actions to minimise non-productive rate at capacity constrained process
3 Prioritise processes and resources to maximising output at the constraint
  • 3.1 Ensure operations and individuals in non-constrained locations protect buffers and prevent build-up of work in process except at buffer locations
  • 3.2 Identify operations that conflict with maximising constraint performance and replace with measures that help maximise throughput
4 Determine strategy to reduce capacity constraint
  • 4.1 Examine causes of the constrained capacity
  • 4.2 Develop possible ways of increasing system capacity
  • 4.3 Analyse and rank possible alternatives for increasing capacity
  • 4.4 Draft a strategy for increasing capacity of system
  • 4.5 Obtain required approval for response strategy
5 Implement a process of on-going improvement as appropriate
  • 5.1 Develop an implementation plan appropriate to the organisation
  • 5.2 Implement plan, as appropriate
  • 5.3 Monitor implementation
  • 5.4 Modify implementation plan, as appropriate
  • 5.5 Identify next capacity constrained process and take appropriate action
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Competitive systems and practices

Competitive systems and practices may include, but are not limited to:
lean operations
agile operations
preventative and predictive maintenance approaches
monitoring and data gathering systems, such as Systems Control and Data Acquisition (SCADA) software, Enterprise Resource Planning (ERP) systems, Materials Resource Planning (MRP) and proprietary systems
statistical process control systems, including six sigma and three sigma
Just in Time (JIT), kanban and other pull-related operations control systems
supply, value, and demand chain monitoring and analysis
5S
continuous improvement (kaizen)
breakthrough improvement (kaizen blitz)
cause/effect diagrams
overall equipment effectiveness (OEE)
takt time
process mapping
problem solving
run charts
standard procedures
current reality tree
Competitive systems and practices should be interpreted so as to take into account:
the stage of implementation of competitive systems and practices
the size of the enterprise
the work organisation, culture, regulatory environment and the industry sector
Constraint
A constraint is anything in the organisation that prevents or makes it harder for the organisation to achieve improved performance. Constraints may be:
internal or external to the organisation
physical (equipment or material-based)
process-based (inefficient or wrong processes/policies/logistics)
people-based (poor training, communication)
market based (lack of demand)
Capacity constrained process
A key assumption in this unit and in the theory of constraints is that improved performance is limited by one (or at most a few) capacity constrained process
Internal constraint
Internal constraints exist where customers demand more than the organisation can deliver (e.g. product, performance and/or quality)
External constraint
External constraints exist where the organisation is producing more (product or services) than are wanted by customers
Drum-buffer-rope
Drum-buffer-rope (choke/release) is a system to avoid flooding the system with inventory. Raw materials are released at a rate to which the constraint can cope (i.e. to a rhythm set by the drum). A buffer is placed in front of the constraint and strictly managed to protect capacity loss
Non-productive time
Non-productive time may include:
quality losses
downtime
other availability losses
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
A person who demonstrates competency in this unit must be able to provide evidence of the ability to:
identify capacity constrained process implement drum-buffer-rope strategy
analyse causes of constrained capacity and develop a response strategy.
Context of and specific resources for assessment
Assessment of performance must be undertaken in a workplace using or implementing one or more competitive systems and practices.
Access may be required to:
workplace procedures and plans relevant to work area
specifications and documentation relating to planned, currently being implemented, or implemented changes to work processes and procedures relevant to the assessee
documentation and information in relation to production, waste, overheads and hazard control/management
reports from supervisors/managers
case studies and scenarios to assess responses to contingencies
minutes of meetings and other records relevant to determining and dealing with the core conflict.
Method of assessment
A holistic approach should be taken to the assessment.
Competence in this unit may be assessed by using a combination of the following to generate evidence:
demonstration in the workplace
workplace projects
suitable simulation
case studies/scenarios (particularly for assessment of contingencies, improvement scenarios, and so on)
targeted questioning
reports from supervisors, peers and colleagues (third-party reports)
portfolio of evidence.
In all cases it is expected that practical assessment will be combined with targeted questioning to assess underpinning knowledge.
Where applicable, reasonable adjustment must be made to work environments and training situations to accommodate ethnicity, age, gender, demographics and disability.
Guidance information for assessment
Assessment processes and techniques must be culturally appropriate and appropriate to the oracy, language and literacy capacity of the candidate and the work being performed.
Replaced By
State Code National Code Title Type
BAJ90 MSS405024 Apply the theory of constraints Unit of competency