Esprit Rock

How to apply the Theory of Constraints

How to apply the Theory of Constraints:
The theory of constraints helps and identify the difficulties and struggles which stops or delay getting the institution to their goals. The application of the theory of constraints in the following five steps,
starting by Identify and specify the constraint;the second phase Exploiting the constraints effectively, (Decide how to exploit the system constraint) ;the third phase is to Subordinating every related decision to the constraints,( Subordinate all else to the above decision);then Elevating the constraints; finally Starting from the first step again when the constraint elevated.( Do not let inertia become the new constraint)
This theory is based on eliminating the restrictions of the system exclude the weaker part, which prevents the productive or causing a flow issue or ineffective or unsatisfied result.
As per Goldratt, it’s common in every chain to have a weak link which known as the constraint .however the strength of the chain get affected by the weakest link, that’s why the weakest link should get strengthened. Strengthening the weakest link means eliminating the constraint and leaks to improve the whole system (Büyüky?lmaz & Gürkan, 2009: 181). Theory of constraints basically targeting the capacity of a firm is limited to the constraints in the production process. Therefore, it is necessary to define and eliminate the constraints in order to increase the firm capacity. According to the theory of constraints eliminating a constraint leads to the occurrence of another constraint and this new constraint also should be eliminated.
So Phase 1: constraint any area, process, or specific element of a system which prevents its performance from reach the goal. the factors acting at any moment as a constraint number either only one or just a few. These constraints may be external (from suppliers or customers) or internal. The latter are of two types: physical when they are due to a lack of resources; and political, when they are brought about by inefficient procedures or policies. To identify constraints, TOC starts by identifying a number of undesirable effects (UDEs). There is at least one constraint in any chain or project: It is necessary to find the constraints that effects in the short term and long term. It is difficult to find and specify constraint then control it which is unpredicted the firm externally.
Phase 2: The target in this phase is to give the maximum effect of the constraint, by the focus on eliminating any activities involving waste of time in the constraint. In this phase, actions are generally focused on making organizational changes.The aim is to reach the top or maximum potential, however, this is usually an ineffective way to eliminate the constraint, as it will be shown later.
Phase 3: This phase presents the operation of open processes or elements of the system so that they will not resist the use of the constraint. similar to the previous step, this may include changes in the policies and procedures without adding expenses.
Phase 4: If second and third phases didn’t work or insufficient to eliminate the constraint, then the solution is to increase the bottleneck potential, which was performed in this case.
Phase 5: based on the previous step the constraint suppose to disappears as a result then it should return to the first step, there will be another constraint either from the inside or outside the system. it’s also important and essential to prevent the system from returning to the previous state, especially in the beginning is extremely common in all systems.