In: Operations Management
What are the five steps behind the theory of constraints methodology and what take place in each?
The steps behind the theory of constraint methodology are as follows:
1.Identify the system constraints: This implies that part of the business which is weak may be in the terms of policy, product or service. The part on which the work to be done is identified.
2 Decide how to exploit the constraints: This implies that making as many changes as possible in the constraint. these changes are up-gradation but the cost-benefit analysis must be kept in mind.
3 Subordinate Everything Else: The non-constraint components of the system must be adjusted to where they operate at maximum effectiveness. The overall system is then evaluated to determine if the constraint has shifted to another component or not. If the shift has taken place we directly move to the fifth point.
4 Elevate the constraint: This implies taking all the necessary steps to eliminate the constraints. Major changes take place at this step.
5. Return to Step One: Again analyze the entire system and check for any problems.