Constraint Management Case Study

721 Words3 Pages
Real World Process Interview
Define 3 Rules of Constraint Management
According to the textbook Eli Goldcratt implemented the Theory of Constraints (TOC). TOC is defined as the business approach to improve production, distribution and project management. (Jacobs, 2013) Goldcratt’s instituted a 5 step process to improve and assess current operations and productions. Goldcratt’s stated the following are rules for the management of constraints which include: “to identify the system constraints and weakness; decide how to exploit the constraints; subordinate everything else to that decision; elevate the system constraints if previous steps are broken start the process over again.” (Jacobs, 2013) By defining the issues proper measurements can be
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(Andre, 2016) The two forms of measurements are Financial and Operational. Financial measurements consist of net profit, return of investments and cash flow. Whereas Operational measurements deal with the rate which money is generated in the system called the Through Put; the control of inventory and the overall operating expense inventory, sales, salary. (Jacobs, 2013) Each of the above statements is key factors to the rules of constraint management. Lister stated, “The constraint management model seeks to improve gaps between constrained resources and non-constrained resources. Tying the completion of project steps by non -constrained resources to completion by constrained resources improves operational efficiency and closes gaps in schedules.” (Lister, 2016) The article continued discussing the model of constraints in management and how it identifies with the employees performance standards and the improvement of the operational efficiency. The importance of structure was emphasized when collecting raw material, creating product and the delivering of products to the consumer. (Lister, 2016) Each of these is key factors to the success of an operation. Improper structure and/or lack
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