Question

Explain how the TOC steps are applied in making the decisions

Answer 1

Theory Of Constraints (TOC)

This is a theoretical process in which the organization or firm monitors and identifies the various elements of the process or any situation caused due to internal or external action that can eventually create an obstacle in the path of achieving the organizational goals. This theory is very crucial for all the organizations in order to make sure that the organization is working according to the plan and is capable of handling any situation and achieving its organizational goals and objectives effectively and efficiently.

Now let us discuss the TOC steps that are applied in making the decisions

• The first and most important step that comes is to really identify the obstacle or issue that can convert into a real problem for the organization and this needs to be done as soon as possible to reduce the impact and this helps as a first step of decision making.
• The second step is to find the possible method to overcome the issue in which the decision-maker needs to evaluate all the possible outcomes on each decision he makes for any particular problem. He will simulate all the possible decisions for any particular action to find the correct one.
• Now the decision-maker needs to make sure that decision that is being selected for any certain problem or situation all the other processes in the organization should support in order to make sure that the plan decided is utilized with its full capability for the best result.
• Sometimes it happens that even after planning and full support decisions made do not work as planned so the decision-maker should consider the best possible steps that can help him improve the situations and keep on looking for new and best plans that can be decided for the organization.
• The last step is to keep monitoring the situations carefully after the decisions are made and implemented in order to keep identifying all such problems that can arise which were not identified in earlier stages of decision making.