Bottleneck Identification of Equipment Manufacturing Industry Chain Upgrading Based on the TOC

Equipment manufacturing industry is a strategic industry of the national economy development. But at present, the equipment manufacturing industry in liaoning province still exist many problems. Therefor, the bottleneck resources determines the system output, in order to promote equipment manufacturing industry chain upgrading, identifying the bottleneck of equipment manufacturing industry chain has a strong practical significance. This paper analyzed the concept of industry chain link and bottleneck resource as well as the methods to identify bottlenecks in production, based on the logistics balance principle of the Theory of Constraint, identify the chain bottlenecks with supply and demand balanced approach. Calculating the demand and supply gap rate of every link, and defining that the link whose supply and demand gap rate is more than 5% is the bottleneck of the system, besides giving a reasonable response.