Question

The Central idea of theory of constraints is based on the

Answer 1

The theory of constraints (TOC) is an overall management philosophy introduced by Eliyahu M. Goldratt in his 1984 book titledThe Goal, that is geared to help organizations continually achieve their goals. Goldratt adapted the concept to project management with his book Critical Chain, published in 1997.

Theory of Constraints takes a scientific approach to improvement. It hypothesizes that every complex system, including manufacturing processes, consists of multiple linked activities, one of which acts as a constraint upon the entire system (i.e. the constraint activity is the “weakest link in the chain”).

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Answer 2

Answer:

Theory of constraint (TOC) is based on the assumption that the rate of achievement of objectives by a goal-oriented system

Explanation:

• Every process has a single constraint, and the throughput of the entire process can only be increased when the constraint is improved, according to the theory of constraints. A very significant implication of this is that only improvements to the constraint will advance the goal; spending time optimising non-constraints will not yield meaningful benefits (achieving more profit).
• When the current constraint no longer restricts throughput, the focus shifts to the subsequent constraint. TOC aims to provide precise and sustained focus on improving the current constraint.
• The fundamental strength of TOC comes from its capacity to create an intensely narrow focus on a single objective (profit) and to eliminate the main barrier (the constraint) to achieving more of that objective. In fact, according to Goldratt, the core of TOC is focus.
• According to Goldratt, organisations can succeed by recognising and utilising a system's constraints. This theory presupposes that there is always at least one constraint, if not more, which limits your performance.
• The idea is that using the constraint is more effective than focusing on individual parts and processes. When you focus on the specific issue that's preventing you from moving forward and address it, profitability increases and an organisation can ultimately achieve its objectives.
• Recall that organisations are networks of interconnected departments and people with various dependencies. Departmental decisions could have repercussions on other groups. The theory of constraints dictates that you take a step back, identify a single leverage point, and fix that to improve the entire system rather than resolving one-off or transient conflicts between various teams.

There are five main steps in theory of constraints:

• Determine the restriction
• Utilize the restriction
• Everything else should be based on the constraint.
• Increase the restriction
• Avoid being inert and keep going.

Reference Link

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