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Theory Of Constraints Research Paper

Introduction The theory of constraints (TOC) could be seen as an approach towards the management of operational constraints or bottlenecks so as to achieve set goals and objectives (Wilkinson, 2013). TOC, in the words of Elton and Roe (1998), “explains how to boost the performance of any process that involves a series of interdependent stems… the theory has managers focus on the bottlenecks, or constraints, that keep the process from increasing its output.” Eliyahu Goldratt is credited with the formulation of this particular theory.

Maximizing Organizational Performance and Effectiveness

It is important to note that the focus of TOC on this front would primarily be system improvement. In that regard, in seeking to apply TOC principles, an individual ought to view the whole production system holistically. In essence, TOC has three principles, i.e. “convergence, consistency, and respect” (Wilkinson, 2013). When it comes to convergence, Wilkinson, (2013) observes that the theory’s implication is to the effect that it is easier to manage a complex system as changes to a specific system aspect ends up affecting the entire system. The principle of consistency, on the other hand, indicates that in most instances, flawed assumptions are always to blame for internal conflicts (Wilkinson, 2013). Lastly, the principle of respect makes an implication to the effect that even when they make mistakes or commit errors, human beings deserve respect due to their inherent goodness (Wilkinson, 2013).

It is important to note that in an increasingly competitive business environment, one of the most important objectives of a business entity is turning a profit. In essence, constraints make this objective difficult to achieve. In that regard, therefore, in seeking to further enhance the effectiveness of the production system, the relevance of highlighting the constraint(s) cannot be overstated. As per TOC, there are a number of sequential steps (six to be exact) are key for implementation purposes. In seeking to assess how the theory of constraints can be applied to a system view of the further enhancement of the effectiveness as well as performance of the organization, I will be applying these TOC constructs. To begin with, there is need to not only identify but also highlighting the specific system component that gets in the way of enhanced performance of the system. Wilkinson, (2013) points...

TOC dictates that changes to be institutes ought to begin from the said system component. This is more so the case given that focusing on other elements is not likely to have a significant impact on the system’s global performance (i.e. performance as a whole). According to Wilkinson (2013), there is often a constraint (or several constraints) within each system – effectively meaning that the relevance of identifying the said constraint cannot be overstated as far as proper management is concerned.
Next, upon the identification of the constraint, there is a need to make a decision regarding how the constraint ought to be exploited. Towards this end, Wilkinson (2013) highlights the need to ensure that “the bottleneck is being put to its most profitable use.” Third, on deciding on how the constraint ought to be exploited, everything else should be subordinated to the decision arrived at. This is to say that the constraint’s pace of work should be used as a standard in the determination of other system elements’ pace of work. Essentially, in reference to TOC, the relevance of the above two recommendations cannot be overstated especially given their role in the system’s structuring. The next undertaking, system’s constraint elevation, is largely concerned with the further enhancement of the constraint’s productivity (Wilkinson, 2013). Here, TOC permits the whole system’s efficiency improvement by way of making appropriate investments on the same. Thanks to continuous performance improvement, the constraint ought to be overcome. When this happens, another component that gets in the way of the production system’s optimal efficiency should be sought.

It is important to note that appropriate constraint identification is of great relevance. This is more so the case given the business improvement opportunities this presents and the influence it has on the indicators of performance. Towards this end, it should be noted that TOC comes in handy as a constraints management approach. As a matter of fact, this is the role for which it was designed.

Managing Multiple Project Resources

In the words of Blackstone, Cox, and Schleier (2008), “managing projects is a difficult undertaking – a large number of projects fail to be completed on time, on budget, or to…

Sources used in this document:

References

Blackstone, J.H., Cox, J.F. & Schleier, J.G. (2008). A Tutorial on Project Management from a Theory of Constraints Perspective. International Journal of Production Research, 47(24), 7029-7046 .

Elton, J. & Roe, J. (1998). Bringing Discipline to Project Management. Retrieved from https://hbr.org/1998/03/bringing-discipline-to-project-management

Martinelli, R.J. & Milosevic, D.Z. (2016). Project Management Toolbox: Tools and Techniques for the Practicing Project Manager. Hoboken, NJ: John Wiley & Sons.

Wilkinson, J. (2013). Theory of Constraints. Retrieved from https://strategiccfo.com/theory-of-constraints/

Srinivasan, M. (2011). Building Lean Supply Chains with the Theory of Constraints. New York, NY: McGraw Hill Professional.


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