Management Approach: The Theory of Constraints by Eliyahu M Goldratt

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Executive Summary

In this research assignment, I will be discussing about the Theory of Constraints (TOC), the literature review about the TOC, that is, what the literature and other authors are saying about this topic. I will also discuss the evidence of the practice of the TOC. Finally, in conclusion I will sum up the findings of my research.

Table of Content

Executive Summary 2
Table of Content 3
1. Introduction 4
1.1. Theory of Constraints 4
1.2. Background 4
2. Literature Review 5
3. Case Study: US Army recruiting 6
4. Conclusion 7
5. Referencing 7

1. Introduction
1.1. Theory of Constraints

Theory of constraints (TOC) is a systematic management approach that focuses on actively managing those constraints that impede a firm’s progress towards its goal of maximizing profits and effectively using its resources. (Krajewski, Ritzman, & Malhotra, 2013). It outlines the deliberate process for identifying and overcoming constraints. The process focuses on the efficiency of individual processes and bottlenecks constraining the overall system. According to Krajewski, Ritzman, & Malhotra, the TOC methods increase the firm’s profits more effectively by focusing on making materials flow rapidly through the entire system. Therefore, the constraints are the weak link. The performance of the entire chain is limited by the strength of the weakest link in manufacturing processes. TOC focuses on the process that slows the speed of product through the system.
Dr Goldratt described Theory of Constraints in one word “FOCUS”. His "Five Focusing Steps”, is also known as the "Process of On-Going Improvement" (POOGI) (Theory of Constraint Institute, 2012; Youngman, 2004; Groop, 2012) became the base of TOC and can be applied to any ...

... middle of paper ...

...T).
Watson, K. J., & Patti, A. A. (2008). A comparison of JIT and TOC buffering philosophies on system performance with unplanned machine downtime. International Journal Of Production Research, 46(7), 1869-1885. doi:10.1080/00207540600972943

Gupta, M. M., & Snyder, D. D. (2009). Comparing TOC with MRP and JIT: a literature review. International Journal Of Production Research, 47(13), 3705-3739. doi:10.1080/00207540701636322
Spector, Y. (2011). Theory of constraint methodology where the constraint is the business model. International Journal Of Production Research,49(11), 3387-3394. doi:10.1080/00207541003801283

Umble, M. M., Umble, E. E., & Murakami, S. S. (2006). Implementing theory of constraints in a traditional Japanese manufacturing environment: The case of Hitachi Tool Engineering. International Journal Of Production Research, 44(10), 1863-1880.

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