July 22, 2017
Products The Factory

The Factory

'The Factory' is an operational process excellence simulation based on The Theory of Constraints (TOC), a philosophy of operations management and improvement developed by Eliyahu M. Goldratt and introduced in his book titled "The Goal". The thoery is based around the idea that, like in a chain with a single weak link, a complex system generally has a single that limits its ability to achieve its optimum goal. For such a system to attain significant improvement, that constraint must be isolated and the whole system must be managed keeping this in mind.

The Theory of Constraints provides a practical framework for managing any large enterprise with a holistic and focused approach and does away with conflicts between local operating level decisions and global company objectives and goals. TOC recognizes two types of constraints that can exist in any system irrespective of size. These are: a) physical constraints and b) non-physical constraints. A physical constraint may be related to the production capacity of a machine. A non-physical constraint might be related to the demand for a product. TOC introduces a methodology to isolate the constraint in the company and systematically eradicate the associated problems.

The Factory engages students in an interactive, real-time simulation that will help them understand the Theory of Constraints and apply related concepts in a practical setting. Students can play individually or in a team, with the objective of maximizing their cash position by reducing costs and increasing production. In the course of the game they have to take several decisions for capacity building, lead time optimization, changing order sizes, inventory holding parameters, and implementing different scheduling rules. The teacher can control all aspects and parameters of the game through a separate interface. The Factory helps students understand a variety of concepts in operations management such as:


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The simulation can be played over a period of 4-5 hours depending on the learning needs of the students. Each game is followed by a 2 hour debrief session by the faculty. The activity is completely web-based and can also be used in competitions. Feedback is provided in the form of several graphs and reports that the students can refer to while in the game. At the end of the game, teams will be ranked based on various performance factors.

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"An extremely engaging and addictive simulation"

- Student, Dept. Of Management Studies

Indian Institute of Technology, Delhi


"The Factory was a great way to learn about

the Theory of Constraints"

- Student, SJ Mehta School of Management

Indian Institute of Technology, Mumbai

"Must for all students of Operations Mgmt."

- Sr. Professor, Indian School of Busines

"The competitition among participants was

great. This is a superb way to learn."

- Student, Indian Institute of Management

The Factory has been developed in association with Prof. Ram Bala of the Indian School of Business, Hyderabad. Prof. Bala is a PhD in Management from the UCLA Anderson School of Management and Bachelors in Technology from the Indian Institute of Technology, Bombay.

To request a demo and to know about pricing details, please contact us using this form or get in touch with us. We have special licenses for educational institutes.