Theory of constraints in a company, Operation Management

Assignment Help:

Theory of Constraints in a Company

The XYZ Group is one of the largest landscaping companies in the United States. Sixty per cent of the business is landscape maintenance; the other 40 is landscape installation. Management knew the company could do better. In February 1996 the XYZ Group began its 'refinement process' using TOC. 

The TOC journey started with about 90 middle- and upper-management personnel reading The Goal. Most agreed that the TOC concepts made sense, but they didn't know how to translate them from the production environment to their landscaping business. They began to understand that the constraint was not necessarily something negative that should be avoided, but that it may be the most profitable part of the business - and if they could control the constraint they could then control profitability. It was realized that work was being done in batches and that local optimum was the focus.

They claim that the ongoing search for constraints taught them some valuable lessons: 

  • Don't change too many processes too quickly - people need to adjust
  • Everyone doesn't learn and accept change at the same speed
  • Document the existing processes and share the planned changes with the staff - involving them in the creation of the current reality trees and future reality trees provides everyone with a sense of involvement, understanding and ownership
  • For them, TOC was a 'refinement process' - this made it easier for personnel to accept the change as something more than a fad, especially as a company which was doing well prior to TOC
  • Measure and share results with other departments and divisions - all can learn from each other's experience
  • Appeal to all the senses - different people respond to learning and changing in different ways, provide the information in different formats - video, books, simulators, etc.
  • The results claimed by XYZ since implementing TOC:
  • Dramatic increase in customer satisfaction due to factors which include being able to make and meet scheduling commitments.
  • 20 per cent increase in client base with only a 12-13 per cent increase in staff.
  • Minimum 50 per cent increase in the bottom line.

Related Discussions:- Theory of constraints in a company

Explain what are the four major goals for it, What are the four major goals...

What are the four major goals for IT? How are the four goals achieved? How does the integration of IT improve the management of supply chains?

Needs for cuba to develop a free and independent trade union, Give your ass...

Give your assessment of the requirements for Cuba to develop a free and independent trade union. Determine if it is essential for a free society.

Explain district investigation of sexual harassment case, Peter Lewiston wa...

Peter Lewiston was terminated on July 15, 2004, by the governing board of the Pine Circle Unified School District (PCUSD) for violation of the district sexual harassment policy. Pr

Explain sales manager and credit manager learn to appreciate, 1. Can you de...

1. Can you devise strategies for the two viewpoints in a firm to live together harmoniously? 2. How can both the sales manager and credit manager learn to appreciate each other'

Define coaches are matched to their situation, Word paper that analyzes the...

Word paper that analyzes the two leadership case studies, "Coach Knight: A Will to Win" and "Coach K: A Matter of the Heart." Address the following questions and concepts:

Explain jit and lean, When linking marketing requirements and manufacturing...

When linking marketing requirements and manufacturing strategy, what design approaches for shop floor system should be considered? JIT and Lean MRP and PAC MRP and JIT

Explain project management tools for a health care, "Project Management" Pl...

"Project Management" Please respond to the following: •Determine the key characteristics that should be considered when selecting project management tools for a health care organiz

Describe methods to diagnose employee stress, Discuss methods to diagnose e...

Discuss methods to diagnose employee stress and the specific OD (organizational development practitioner) interventions aimed at alleviating it in the workplace.

Explain sum payable must be certain and definite, Please exemplify the stat...

Please exemplify the statement correctly: It is also essential that the sum payable must be certain and definite. If the amount ordered to be paid is uncertain, the instrument cann

Operations system, what is operations system? explain the process of operat...

what is operations system? explain the process of operations system?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd