Theory of constraints -toc, Operation Management

Theory of constraints -TOC

The theory of constraints was first proposed in 1986 by Dr Eliyahu M. Goldratt in his widely read book The Goal. The theory of constraints is the practical results of Eli Goldratt's work on 'how to think'. It is about thinking processes and their applications. TOC is a verifiable philosophy. By knowing how to think, we can better understand the world around us; by better understanding we can improve.

This book is interesting as it was not written as a text book or a collection of papers on a topic but as a narrative. It is a story of a production manager facing severe problems at work who is visited by a helpful consultant (referred to as Jonah) who has him question his ingrained views of best practice. In this discussion Jonah suggests that any system must have at least one constraint otherwise it would generate an infinite amount of output and that constraints generally determine the pace of an organisation's ability to achieve its goal which is profit. However, by identifying constraints, organisations cannot create an infinite amount of output. Goldratt emphasises that constraints pose a significant threat to the wellbeing of an organisation and must be addressed. He suggests that constraints may be physical resources such as labour availability or skills, machines, capital or time but may also be organisational policies or guiding principles or rate of innovation. Constraints may be inside or outside an organisation.

By identifying our constraints we possess the ability to examine what stops us from achieving our goal. Goldratt suggests that many organisations do not state their goals in sufficiently clear terms to allow constraints to be identified. This lack of focus creates a broad front for management to operate which in turn allows broad goals to be defined and all resources to be seen as constraints to some degree.

Generally management 'optimise' the performance of all resources available as each is seen as an asset whereas Goldratt argues that not all assets or activity affect the constraint(s). More than that, though, TOC challenges us to define a goal and re-examine all of our actions and measurements based on how well or how poorly they serve it.

Posted Date: 3/15/2013 2:46:59 AM | Location : United States







Related Discussions:- Theory of constraints -toc, Assignment Help, Ask Question on Theory of constraints -toc, Get Answer, Expert's Help, Theory of constraints -toc Discussions

Write discussion on Theory of constraints -toc
Your posts are moderated
Related Questions
Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors.

1. Since the creation of DHS, the Postal Service is no longer in the business of fighting computer-generated crimes such as child pornography. True or False 2. During the first era

Explain methods of 'On - the Job Training' for Managers. Methods of 'On - the Job Training' for Managers : (i) Experience: In this method a person who is to do something a

What is the average value of a loyal customer (VLC) at Abby''s restaurants (see Chapter 3)? What is the best way to increase revenue given your VLC analysis

Your company assembles five different models of a motor scooter that is sold in specialty store in the United States. The company uses the same engine for all five models. You have

What is your understanding of the term: Brand Equity? How do marketers develop brand equity for their products/services relative to competition? Provide an example of a brand/produ

i want to no how they management patient were to start up to the end

Meile Machine Shop, Inc., has a 1-year contract for the production of 225,000 gear housings for a new off-road vehicle. Owner Larry Meile hopes the contract will be extended and th

What is lost when no feedback is required? What can an employee do to change this situation when it is a specific company policy NOT to provide feedback? Name two possible re

You are the plant manager at Acme Plastics. You are running two shifts, a day shift and an evening shift. Before the day shift leaves each day, the workers must get an adequate sup