Preparation for Fundamentals Exam

The TOC Fundamentals Exam consists of the following three broad areas: (1) TOC Fundamentals Concepts, (2) TOC Thinking Processes, and (3) TOC Applications. The learning objective and further detail are provided below. The total maximum allowable time for the entire examination is  3 hours to answer 75 multiple-choice questions.

Exam Areas & Learning Objectives

1.  TOC Fundamentals Concepts

Learning Objectives:  Demonstrate an understanding of TOC basic beliefs, paradigms and concepts. Seek to show the ability to apply these fundamental ideas within a realistic scenario. Compare and contrast TOC basics with conventional wisdom approaches.

• Understand the conceptual difference between managing a 'simple' and a 'complex' system.  Have the capability to apply this understanding in a specific situation.
• Know and understand the five-step focusing process (one of the three processes of ongoing improvement). Be able to apply these steps within a realistic scenario.
• Understand the relationship between a realistic goal, necessary conditions for goal achievement, and any prerequisites for those meeting the necessary conditions.  For a particular scenario, apply these concepts in a meaningful manner.
• Discuss system constraint(s), their relative importance, and various approaches to managing them.
• Describe the TOC systemic or global metrics relative to organizations residing in different industrial sectors.
• Differentiate between the "cost” and "throughput” world orientations.

2.  TOC Thinking Processes

Learning Objectives: Demonstrate a fundamental understanding of TOC Thinking Processes (TP). For simplified scenarios, be able to determine and state sound logical relationships.

• Identify the three questions associated with the Change Sequence. Briefly describe the managerial implications associated with each questions. Be able to name the Thinking Processes (TP) logic tools that are most closely associated with answering each query and the linkages among the tools.
• Distinguish between necessity-based and sufficiency-based logic.
• Know the difference between a well-written and poorly-written undesirable effect (UDE).
  
• Be able to create a logically-tight evaporating (or conflict) cloud for a particular situation.
• Be able to create a small, logically-tight, twig or branch for a particular situation.
• Be able to apply the categories of legitimate reservation.
  
• Explain why the real advantage in using the TP tools resides with identifying assumptions associated with entity relationships.
• Discuss the TOC approach to develop true win-win solutions in long-standing conflicts.
• Describe the concept of an injection and explain how it achieves its purpose.
• Describe the concept of logical linkages between policies, measurements, and behaviors.
• Differentiate between effects and assumptions/facts of life entities within a logic structure. Identify the characteristics of and/or create a well-written entity.

3.  TOC Applications

Learning Objectives: Demonstrate a fundamental knowledge and understanding of simple traditional and TOC applications in: (1) IVAT structures, (2) internal supply chain management and logistics, (3) finance and measurements, and (4) single and multi-project environments applications of CCPM (critical chain project management). In addition, show familiarity with the TOC approach to identifying and addressing each layer of resistance to change. Specifically, the successful candidates should be able to:

• Create an effective plan for managing an internal supply chain using Simplified-DBR using VATI flow classification, including constraint/bottleneck identification, appropriate buffer management, differences between time and stock buffers, and establishment of the necessary communication links.
• Determine an optimal product mix for a simplified situation in which there is a functioning constraint.
• Demonstrate an understanding and ability to manage a single specific project according to TOC Critical Chain principles. Focus is on identifying activities in the critical chain, location and sizing necessary project and feeding buffers, and predicting expected total project completion time.
• Demonstrate an understanding of the concepts of how to apply CCPM in a multi-project environment without having to build a detailed plan based on a scenario with data provided.
• Identify the sequential layers of resistance to change that must be overcome in order to gain management’s buy-in to implementing system-based improvements.
  

Study Materials for the Fundamentals Exam

The reference and review materials listed below contain the kinds of information and knowledge that a person needs to know in order to successfully complete the Fundamentals Exam. This is a suggested list only - it is not complete - and serves to provide TOCICO members and guests with some useful direction in reviewing, studying, and preparing for the Fundamentals Examination.

1. TOCICO Dictionary: https://www.tocico.org/page/PortalReferPg    (free to TOCICO members)
2. Theory of Constraints Handbook:  https://www.tocico.org/page/PortalReferPg    (free to anyone)
3. "What is TOC" videos:  https://www.tocico.org/page/toc_portal  (free to anyone)
4. Basics of TOC videos:  https://www.tocico.org/page/toc_basics_portal  (free to anyone)
5. The Goal movie: www.toc-goldratt.com  (* see note below)
6. TOC Self Learning Program (aka Goldratt Satellite Program) by Eli Goldratt: www.toc-goldratt.com   (* see note below)
   
7. TOC Insights for Operations, Finance & Measurements, Project Management & Engineering and Distribution & Supply Chain by Eli Goldratt and Rami Goldratt: www.toc-goldratt.com (* see note below)
   
8. Wikipedia: http://en.wikipedia.org/wiki/Theory_of_constraints (free to anyone) 
   
9. A Guide to Implementing the Theory of Constraints (TOC) by Kelvyn Youngman: http://www.dbrmfg.co.nz  (free to anyone)
10. Beyond the Goal (Necessary & Sufficient Series) by Eli Goldratt at: www.toc-goldratt.com  (* see note below) 
11. Production the TOC way (with simulator): available at Amazon(varies US$20 -$49.00)
    

* NOTE: The items marked * above can be purchased from Goldratt Marketing Group through a TOC.tv Full Access Membership for 1 year - TOCICO Members receive a special price of only $264.10. For details or to purchase go to: https://www.toc-goldratt.com/en/product/toc-tv-full-access

Wishing you all the best. Good luck on the Fundamentals Exam!