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Goldratt's Theory Of Constraints

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1.0 DEFINATION OF THEORY OF CONSTRAINTS
1.1 HISTORY
The theory of constraints (TOC) is an overall management philosophy introduced by Eliyahu M. Goldratt in his 1984 book titled The Goal, which is help organizations continually achieve their goals. Goldratt adapted the concept to project management with his book Critical Chain, published in 1997.
An earlier transmitter of a parallel concept was Wolfgang Mewes in Germany with journals on power-oriented management theory (Machtorientierte Führungstheorie, 1963) and following with his Energo-Kybernetic System (EKS, 1971), later renamed Engpasskonzentrierte Strategie as a more advanced theory of bottlenecks. The publications of Wolfgang Mewes are marketed through the FAZ Verlag, publishing house …show more content…

TOC 's key processes are concentrated on removing barriers that from working together as an integrated whole. 1.3 KEY TO UNLOCK PERFORMANCE
Some people call “constraint” as “bottleneck”, a situation, like the weakest link in a chain, every system must have own bottleneck or "CONSTRAINT" which governs its output. There is no system has unlimited output, you can prove from the financial report of organization. A particular type of machine, employee, or even shelf space might serve as the constraint. So could supplies, orders, or cash.
Constraints control output whether we acknowledge them or not. When properly recognized and managed, constraints can provide the fastest route to the significant improvement and form the foundation for constant growth. When organization ignored it, the constraint may lie idle, wasting large amounts of company’s capacity. A loss control constraint may also cause disorder on delivery schedules and cause unexpected delays. It is important for every manager to make the most of their constraint and manage it …show more content…

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