Applying Toc
Applying A TOC
Lisa Smith
UMUC/BMGT 375
March 15, 2012
Applying a TOC
In any given organization, one fact that is sure is that an organization has an inept need to achieve and supersede its set goals. However, despite this drive, weaknesses in the system are always extant. According to Marton and Paulová (2010), there exists at least one constraint within any given system. By definition, “a constraint is any activity, or in general anything, that prevents a system from achieving its intended goal” (Marton & Paulová, 2010, p. 71). Eliyahu M. Goldratt put the Theory of Constraint forward in the book The Goal published in 1984 (Marton & Paulová, 2010). In this essay, the learner takes a look at the advantages and disadvantages of the Theory of Constraints.
Advantages of Theory of Constraints
First, the utility of TOC creates potential for incredible increase in productivity while changes to operations are kept to a bare minimum (Marton & Paulová, 2010) and (Perkins & Stovall, 2011). The main contributing reason for this event is the fact that at the heart of TOC is the drive for performance optimization (Perkins & Stovall, 2011).
Secondly, TOC has proved to be the most powerful and yet cost effective tool designed to increase production capacity (Marton & Paulová, 2010). This is mainly because TOC focuses on throughput compared to input and operation processes (Perkins & Stovall, 2011).
Thirdly, despite its incredible power, TOC is a very basic tool “to communicate and even apply” and thus being “ideal for shop floor teams” (Marton & Paulová, 2010). Fourthly, TOC is great in as far as fostering teamwork is concerned given the fact that different areas become aware of existing constraints and thus the adamant need for cooperation to assist in the constraint process (Marton & Paulová, 2010).
Fifthly, TOC provides a basic framework for kick starting improvement efforts since it can provide highly
Lisa Smith
UMUC/BMGT 375
March 15, 2012
Applying a TOC
In any given organization, one fact that is sure is that an organization has an inept need to achieve and supersede its set goals. However, despite this drive, weaknesses in the system are always extant. According to Marton and Paulová (2010), there exists at least one constraint within any given system. By definition, “a constraint is any activity, or in general anything, that prevents a system from achieving its intended goal” (Marton & Paulová, 2010, p. 71). Eliyahu M. Goldratt put the Theory of Constraint forward in the book The Goal published in 1984 (Marton & Paulová, 2010). In this essay, the learner takes a look at the advantages and disadvantages of the Theory of Constraints.
Advantages of Theory of Constraints
First, the utility of TOC creates potential for incredible increase in productivity while changes to operations are kept to a bare minimum (Marton & Paulová, 2010) and (Perkins & Stovall, 2011). The main contributing reason for this event is the fact that at the heart of TOC is the drive for performance optimization (Perkins & Stovall, 2011).
Secondly, TOC has proved to be the most powerful and yet cost effective tool designed to increase production capacity (Marton & Paulová, 2010). This is mainly because TOC focuses on throughput compared to input and operation processes (Perkins & Stovall, 2011).
Thirdly, despite its incredible power, TOC is a very basic tool “to communicate and even apply” and thus being “ideal for shop floor teams” (Marton & Paulová, 2010). Fourthly, TOC is great in as far as fostering teamwork is concerned given the fact that different areas become aware of existing constraints and thus the adamant need for cooperation to assist in the constraint process (Marton & Paulová, 2010).
Fifthly, TOC provides a basic framework for kick starting improvement efforts since it can provide highly
References: Marton, M. & Paulová, I. (2010), Applying the theory of constraints in the course of process improvement, Research papers Faculty of Materials Science and Technology in Trnava, (29), 71-76. Retrieved from http://www.mtf.stuba.sk/docs/doc/casopis_Vedecke_prace/29/7_marton.pdf Perkins, D., & Stovall, O. S. (2011). Resource consumption accounting - where does it fit? Journal of Applied Business Research, 27(5), 41-51. Retrieved from http://search.proquest.com/docview/889140205?accountid=45049