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Theory of constraints, components and premise

Identify who created the theory of constraints, and explain the premise of the theory. Identify the two components of the theory of constraints and discuss, in detail, the elements contained in each of the components and where in the value chain each can be applied.

Explain what the theory of constraints is and identify it as developed by Dr. Eliyahu Goldbratt, an Israeli physicist, educator, and management specialist. Communicate that the theory of constraints is designed to assist those who are undertaking the task of improvement through understanding what to change, what to change to, and how to cause the change. Explain that the theory can be used in a supply chain strategy as a method of achieving continuous improvement. Identify and describe the following two components of the theory of constraints (Rahman, 1998):

Component #1
A company should first articulate its overall goal, then it should proceed with the following steps:
- Identify the constraint, making sure to prioritize according to the impact on the goal.
- Decide how to exploit the constraint.
- Subordinate all other processes to the above decision.
- Elevate the constraint.
- If, as a result of these steps, the constraint has moved, return to step 1; do not let inertia become the constraint.
- The drum-buffer-rope (DBR) scheduling methodology
- The buffer management scheduling system (referred to as the logistics paradigm)

Component #2
A generic approach for investigating, analyzing, and solving complex problems called the thinking process (TP).

Solution Preview

Dr. Eliyahu M. Goldratt was a business management guru, whose initial success was in discovering the effectiveness of finite scheduling utilizing a computerized system in 1979. Based on this, he was determined to identify and eliminate bottlenecks on the shop floor to improve productivity. He continued to investigate processes in search of ongoing improvements, by synergistically matching MRP, Just in Time and the Statistical Process Control. Dr. Goldratt developed the theory of constraints (TOC) upon the concept that "every system has at least one constraint limiting it from getting more of what it strives for" (Beexcellence.org, 2013). Taking this concept further, Dr. Goldratt reasoned that by identifying and reducing the constraints, a manager would be able to improve the systems output. Goldrat's theory of constraints helps to describe the cause of constraints, as well as identify how to resolve them. Goldratt viewed the system as a collection of independent processes that work together to change, develop or manufacture a product or service (the goal). In using the analogy of a chain, Goldratt was helping the manager picture the interrelated items that are joined together, but at the same time, reminding the manager that within every chain is the weakest link, that prevents the chain (the system) from producing more. Goldratt felt it was important to identify the weakest link ...

Solution Summary

This solution discusses the theory of constraints, discussing its' premise and components of the theory. The solution is verydetailed and gives APA references.

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