Theory Of Constraints In Plain Words

If you do not already know about Theory of Constraints

, an introduction is necessary. In plain words, it is a philosophy that aims to manage and improve the performance of constituents in any given complex system. It advocates that any system, however intricate, generally suffers from one major limiting factor that, in turn, delimits its potential performance at its pre-determined goal. So, in order to gain more ability to achieve goals better, the particular constraint causing friction must be identified, followed by management of the constituents in a way that is sensitive to the constraint.

Now coming to the understanding Theory of Constraints, it has its (analytical) tools based on cause and effect relationships. What the learned call 'accurate sciences'; experience of the branch of science gives away its body of knowledge that is quite precise, though easy to understand being very logical.

The tools of Theory of Constraints are used by management to find breakthrough answers to difficulties they face in their job. Accordingly, the managers who follow ToC, first of all, get busy in identifying the root cause of conflicts. The causes that systematically aggravate the problem within a system are generally a set of odd assumptions that are just made, without any concrete basis. The manager works on the problem by duly attending to the causes identified - the solution thus is called a win-win solution.

Besides building solutions, Theory of Constraints also works towards promoting collaboration and communication within a system. That facilitates the implementation of ToC processes in the end. In fact, communication and coordination are considered the building blocks for effective solutions in a ToC set up for all business functions right from manufacturing to marketing.

Now, coming to which all organizations should implement Theory of Constraints; there is no typical outline for an organization to feel eligible or otherwise. Even if your business is doing fine and profits are filling in quite conveniently, ToC is relevant. There is always a scope for improvement within each organization. So, some organizations adapt with ToC thinking process in order to enhance communication within their present organizational structure and upgrade their effectiveness in day to day business.

by: Abhi

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