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Essays on the theory of constraints
Theory of constraints essay
Essays on the theory of constraints
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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 ...
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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.
In today’s operational management arena, there are certain expectations from a managerial aspect that must be met in order to be successful. A comprehensive look at the Space Age Furniture Company will show exactly what the Materials Requirement Planning (MRP) calculations are for this company at present time and then take the information given in order to properly suggest ways to improve the sub-assemblies. In addition, there will be an analysis on the trade-offs between the overtime and inventory costs. A calculation will be made on the new MRP that will improve the base MRP. This paper will also compare and contrast the types of production processing to include the job shop, batch, repetitive, or continuous, and determine which the primary mode of operation should be and exactly why. A detailed description on how management can keep track of the job status and location during production will also be addressed. Finally, there will be a recommendation on they type of changes that need to occur that will be beneficial to the company and at the same time add value to the customer. This paper will conclude with summary of the major points.
...ovement, many restrictions imposed on both parties were necessary to help encourage constructive bargaining within the system.
Any company is unable to manufacture a 100%. Therefore, people should really focus on the constraints, in a way that it will prevent a failure that will damage the entire system. Bottlenecks are the key in every plant, because it will determine the activity that will create a profit and maximize the business output.
“The Goal” is a book talking about challenges and problems that can face any plant manager. The story style used was very useful. I enjoyed the reading and gain more knowledge about the manufacturing operation. Many concepts and definitions were introduced such as the goal of any company and the its three measurements which are throughput, inventory and exponential expenses. Also, bottleneck and non-bottleneck resources.
Continuous improvement (CI) refers to a philosophy consisting of improvement activities that increase successes and reduce failures in a production process (Bhuiyan & Baghel 2005, p. 761). It involves activities and processes that focus on continuous and incremental innovation (Bessant et al., 1994, p.17). CI is a new approach that enhances productivity, performance, and achieves competitive advantage needed in the highly competitive industries. It may also serve as a complementary approach to other quality improvement initiatives such as total quality management (TQM) (Pike, Barnes, & Barnes 1995, p. 23; Larson 2003; Lassen, Gertsen, & Riis 2006; Oakland 2007, p. 227). The purpose of this research is to explore the application of production systems engineering methods in the CI at manufacturing plants.
Zott, C., Amit, R. And Massa, L. (2011) ‘The Business Model: Recent Developments and Future Research’, Journal of Management, vol.37, no.4 pp.1019-42 [Online]. Available at http://jom.sagepub.com/content/37/4/1019 [Accessed 24th November 2013]
Since more than 40 years, Toyota Company was thinking how to develop the traditional process costing system and the production system. Some of the companies believe that the increasing of the production is a big profit, while Toyota proved the opposite. The more you increase the products out of the need of the market, the more losses you are going to gain. This kin...
...negative constraint that arises in this situation is that some of the members would hold themselves back.
Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business
This paper will summarize the Custom Fabricators, Inc. case study by Chase, Jacobs, & Aquilano, p. 44, answer the discussion questions shown in Figure 2, and define the role of Operations Management at Custom Fabricators, Inc.
Since the end of the 19th century, when factory manufacturing became widespread and the size of organisations increased, people have been looking for ways to motivate employees and improve productivity. A need for management ideas arise which lead to classical contributors such as Frederick Taylor and Henri Fayol generating management theories such as Taylor’ Scientific Management and Fayol’s Administrative Management. In the late 1920’s and early 1930’s the Hawthorne studies were conducted where Elton Mayo was the predominate figure and contributed to the Behavioural viewpoint. This brought about a Human Relations Movement which included Douglas McGregor’s Theory X and Theory Y approach. Similarities and differences can be found between the theories due to the relevant time period they were implemented, the motives or goal of the theory and how they view organisations. However the use of contingency theory can help negate the dissimilarities which occur as it allows the relevant elements from each theory to be applied to specific situations.
The JIT production hit the West in the 1980’s. It was basically the same concepts as Ohno's, but with different names such as: World Class Manufacturing, Stockless Production, and Continuous Flow Manufacturing. James Womack’s book “The Machine That Changed The World” gave a new buzzword to manufacturing, “Lean Manufacturing”. Essentially this is based on the same principles of JIT and Toyota Production.
There are four different functions of management. In this paper, I will define these functions; planning, organizing, leading and controlling. I will also explain how each of these functions relates to my own organization. Bateman and Snell (2004) define management as the process of working with people and resources to accomplish organizational goals. By utilizing the four different functions of management companies can work with their employees and other resources to reach the organizations goals.
According to Slack et. al. (2001) the best mechanism for running a business is to match level of demand (goods, services that customers need) with supply of capacity (recourses, labor force that the business inputs in the production process). They also define capacity as “the maximum level of value –added activity over a period of time”. Thus three main factors come into force here – the capacity of resources and labor force, the process operation which itself leads to satisfying customers through matching demand. It is very important to plan and coordinate all 3 factors very effectively because a difference in capacity and performance easily affects: costs, revenues, working capital, flexibility, quality of goods, speed of response and others.
Although it maximized efficiency and productivity but its main limitation was ignoring human aspects of employment. This is manifested in the following: