Question

Describe the Theory of Constraints (TOC). How might the TOC be used to explain operating conditions at a business organization you frequently visit. supermarket, theater, children's school, local gasoline service station.,airport, department store, etc0

Answer 1

Theory of constraints is a management philosophy which advocates that factors which hinders the growth of an organisation must be properly identified and worked upon for achievement of goals and objectives in efficient and effective manner.

This theory advocates that Factors that limit the Overall growth of the company are identified. Then they are worked upon in order to improve so that they don't hinder the further growth of the company.  

According to the theory of constraints the best for an organisation is to achieve its goals by reducing operating expenses, reducing inventory and increasing throughput.

It involves a six steps of process

1. Identify the goal- This process starts with identification of goals of the company.

2. Identify the constraints- Then the identification of different factors or bottleneck which hinders the growth of the company are identified.

3. Exploit the constraints.- This step involves that the constraints are exploited in order to be put in best to their use.

4. Subordinate operations to the constraints. - This process involves with optimization of the production process of the bottleneck.

5. Increase constraints capacity.- This step involves with increasing the capacity of the bottleneck .

6. Repeat with a new constraints. - Once the performance of one constraint is bettered, a new constraint is repeated with same process.

Theory of constraints can be seen through the various day to day life operations like-

1. In the supermarkets, Many of the staffs can work the cash, so one is rarely struck waiting for another cashier.

2. In Supermarkets, When there is lime up, the cashier starts opening up new lanes, so the constraint is cleared.

3. There are Market constraints like production capacity is higher than external market support so supermarkets continuosly adjust.

4.;There are policy constraints like informal workplace norms, government regulations so efforts are made in order to effectively reduce the adverse effects.