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Theories in management
Theories in management
Theories in management
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In The Goal: A process of ongoing improvement, Eliyahu Goldratt uses a form of literature that can be used even in today’s society to introduce his business theory of constraints. This theory is based on a chain with shortfall link in it. Basically, when analyzing any multipart system at any specific time, you will find the area of the system has a limited ability to maximize its goal. In order for this system to accomplish significant improvement it’s necessary to identify the constraint and redefine the system. Goldratt offers a great deal of information that is so basic to today’s management system that any who reads could absolutely benefit from. The system knowledge and analytical tools used for redefinition in the constraint theory …show more content…
The Japanese were using a variety of manufacturing improvement processes, like kaizen and poka-yoke, but it took time for them to be recognized and brought back the U.S. by individuals such as Edward Deming. Meanwhile, other business managers were also looking for ways to enhance quality and speed up production. In 1951, the concept of total quality management was introduced along with its quality circles. In 1982, Tom Peters’ book In Search of Excellence shook the industrial world by making companies look seriously at their production mode. Statistical process control (SPC) was also making a comeback in industrial areas. Ford Company started to look seriously at was happening with automobile production in Japan. It is in the midst of all these changes that Israeli-born physicist and business manager Goldratt used the unique novel form instead of a textbook to introduce his theory of constraints. It now seems like no big deal these days because in most companies looking for the bottlenecks is second nature. Yet going back to the early 1980s, these were radical ideas concerning continuous process improvement that The Goal was
A Review and Assessment of Its Critiques, Journal of Management, SAGE. Viewed on5th April 2011, at http://jom.sagepub.com/content/36/1/349.full.pdf+html
The Goal is a book that focuses on the theory of constraints in order to improve production. Eliyahu Goldratt brings us a pleasant story that shows the important strategies that any manager or CEO should follow to be successfully productive, and capable of reaching their goals. The book easily explains and demonstrates many attainable ways for any human being to learn how to manage their industrial relations, business processes, and also, their personal lives.
Dr. William Edward Deming is known as the father of the quality evolution. To gain this status Deming developed many innovative processes and philosophies. The most recognized being the Plan-Do-Study-Act cycle (PDSA), which is a method for continuous improvement of processes. Another major development in the process improvement sector was Deming’s creation of the 14 key principles; this is an outline of codes that aid in transforming business effectiveness. In addition to the 14 key principles, Deming also established the seven deadly diseases; a list of conditions that would halt continuous improvement. Also notable were Deming’s Red Bead experiment and the chain reaction philosophy which exemplified the importance of investing within the organization..The effectiveness of these philosophies and principles can be viewed from Japanese industry; where Deming spent much time in his early career sharing his knowledge about process improvement.
In the mid 1980s, and into the 1990s, business leaders realized that a renewed focus on quality was required to continue to compete in an expanding global market. (NIST, 2010) Consequently, several strategic frameworks were developed for managing, and measuring organizational performance. Among them were the Malcomb Baldrige National Quality Award, which was created by and act of congress and signed into law by the President in 1987, and The Balanced Scorecard, which is a performance management tool that was born out of research conducted in the late 1980s and early 1990s by Robert S. Kaplan, and David P. Norton published in 1996 (Kaplan, 1996). Initially, the renewed emphasis on quality management systems was a reaction to the LEAN approach to quality management implemented by many Japanese businesses to great success post World War II.
Juran, J.M., "Japanese and Western Quality A Contrast," Quality, January 1979, pages 8 12; and February 1979, pp. 12-15. Juran, J. M., "The QC Circle Phenomenon," Industrial Quality Control, January 1967, pp. 329-36.
The Goal: A Process of Ongoing Improvement is a very popular and bestseller book in management section. Eliyahu M. Goldratt and Jeff Cox wrote the book in 1984. It comes in 390 pages. It published by The North River Press. In 20 years, over than three million copies were sold, translated into 21 languages and taught in over 200 collages. The way the book is written was like telling a story although the contents are science. That is because the author thinks it is the best way for education.
“The Goal” is as it vividly explains, is a book on achieving goals. Eliyahu Goldratt, world famous Israeli physicist turned business consultant, the creator of the “Theory of constraints”, in his work “The Goal”, explains a lot about managerial skills, to achieve higher productivity and efficiency, in a simple and lucid manner.
Preez, D., & Louw, L. (2004, January 1). A Roadmap Approach For Implementing Theory of Constraints In Manufacturing Organisations . . Retrieved June 29, 2014, from http://www.indutech.co.za/attachments/134_A%20Roadmap%20Approach%20For%20Implementing%20Theory%20of%20Constraints%20in%20Manufacturing%20Organisations.pdf
There is a lot of literature on the concept of continuous improvement (CI). Studies show that CI is very important to creating competitive advantages in highly competitive industries such as the automobile industry (Bhuiyan & Baghel 2005; Li et al. 2009; Schaeffer, Cadavid, & Backström 2010). These studies suggest that manufacturing firms use CI to eliminate waste in all organisational systems and processes (Bhuiyan & Baghel 2005; Li et al. 2009). Currently, manufacturing firms use lean manufacturing, six sigma, lean six sigma, and the Kaizen methods of CI methodologies to reduce wastages, simplify the production line, and improve quality (Swink & Jacobs 2012).
Secondly, from years of quality control practice the firm established a well-know quality control procedure, "the Method". It has great value to the company in that it includes detail best practices for the production procedures which guarantees and improves the quality of the products. It serves as an efficient decision measure tool and a great training material.
Robbins, S. P., & Coulter. M. (2014). Management (12th ed.). Retrieved from: Colorado Technical University eBook Collection database.
Stephen P. Robbins and David A.Decenzo, Fundamentals of management: essential concepts and applications (USA: pearson prentice hall, 2003), PP.13-14.
The techniques of the stimulation gave an outline of achieving the companies goal to identifying the problems, how to fix the problems and implementation. The criteria matrix was the technique used to identify the problems. The criteria matrix provided a simply way of prioritizing, organization, and sorting out issues into categories deemed critical or non-critical and whether each on was urgent or non-urgent. This was also a controlled way of making deciding what the problem was because you had all the information to start making decisions. This technique helped determine the criticality of the issues, from identifying the problem to ev...
Kinicki, A., & Williams, B. K. (2011). Management: A practical introduction (5th ed.). New York, NY: McGraw-Hill Irwin.
The theory of constraints (TOC) is a systems-management philosophy developed by Eliyahu M. Goldratt in the early 1980s. The fundamental thesis of TOC is that constraints establish the limits of performance for any system. Most organizations contain only a few core constraints. TOC advocates suggest that managers should focus on effectively managing the capacity and capability of these constraints if they are to improve the performance of their organization.