The Effective Application of the Theory of Constraints
The ART of THINKING around sustainable Business Growth Model, Innovation, Leadership and winning the Hearts and Minds
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The Theory of Constraints (TOC) identifies constraints which are otherwise labelled as waste by lean. TOC isolates these constraints and provide resources in order to buffer and/or eliminate them completely. TOC's underlying premise is that organisations can be measured and controlled by variation on three measures which are throughput, operational expense and inventory. TOC challenges managers to rethink some of their fundamental assumptions about how to achieve the goals of their organisations, what they consider productive actions, and about the real purpose of cost management in order to m...
The Theory of Constraints (TOC) identifies constraints which are otherwise labelled as waste by lean. TOC isolates these constraints and provide resources in order to buffer and/or eliminate them completely. TOC's underlying premise is that organisations can be measured and controlled by variation on three measures which are throughput, operational expense and inventory. TOC challenges managers to rethink some of their fundamental assumptions about how to achieve the goals of their organisations, what they consider productive actions, and about the real purpose of cost management in order to maximise throughput through sales. It is about understanding bottlenecks to a process and better managing these bottlenecks to create an efficient process. Even though outcomes are the intended results, the inputs are considered vital. Highly thankful of the contribution by Arrie van Niekerk and Dr Pule Kholopane as Co Authors along the Journey .
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