Essay On Constraints

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Constraint also referred as bottleneck are those paint points or the link that is weakest in the process of the organization which may slow down or hamper the smooth running of the entire organization. As rightly said by Goldratt ”organizational performance is dictated by constraints”. Constraints are the restrictions that prevent an organization from maximizing its performance and achieving its goals. Constraints can involve people, supplies, information, equipment, or even policies, and can be internal or external to an organization. Constraints can be categorized in one of the following categories: behavioral, managerial, capacity, market, and logistical each having its own impact on the smooth operation of the organization. For instance, …show more content…

Furthermore, within the category of internal constraints lie another sub-category of physical constraints and policy …show more content…

The first is that of capacity constraints also known as resource constraint which includes the labor, machines, and buildings which is required to transform the purchased raw material into finished end product. The second category is that of material constraints, which includes the raw materials and goods, work-in-process, etc. that are converted to finish product by the resources of the company.
• Policy Constraints
The Policy constraints can be explained by channelizing into the categories of mindset constraints, measures constraints and methods constraints. Mindset explains the thought process and the work culture of the organization. It is the mindset that organizes the company’s thinking and allocates or assigns all the priorities to different courses of action. New and changing measures that contradict the prevailing mindset have little chance of being used and implemented. Measuring these constraints is critical because it is responsible for creating situations that encourage behaviors that have a negative effect on the performance of a business. All the bonuses that have an overall negative impact on the bottom-line of a organization would fall into this category. Methods constraints refer to the process, procedures and techniques that determine how the day-to-day operation of the organization is carried

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