Theory of Constraints

Introduction
The theory of constraints (TOC) could be seen as an approach towards the management of operational constraints or bottlenecks so as to achieve set goals and objectives (Wilkinson, 2013). TOC, in the words of Elton and Roe (1998), “explains how to boost the performance of any process that involves a series of interdependent stems… the theory has managers focus on the bottlenecks, or constraints, that keep the process from increasing its output.” Eliyahu Goldratt is credited with the formulation of this particular theory.
Maximizing Organizational Performance and Effectiveness
It is important to note that the focus of TOC on this front would primarily be system improvement. In that regard, in seeking to apply TOC principles, an individual ought to view the whole production system holistically. In essence, TOC has three principles, i.e. “convergence, consistency, and respect” (Wilkinson, 2013). When it comes to convergence, Wilkinson, (2013) observes that the theory’s implication is to the effect that it is easier to manage a complex system as changes to a specific system aspect ends up affecting the entire system. The principle of consistency, on the other hand, indicates that in most instances, flawed assumptions are always to blame for internal conflicts (Wilkinson, 2013). Lastly, the principle of respect makes an implication to the effect that even when they make mistakes or commit errors, human beings deserve respect due to their inherent goodness (Wilkinson, 2013).
It is important to note that in an increasingly competitive business environment, one of the most important objectives of a business entity is turning a profit. In essence, constraints make this objective difficult to achieve. In that regard, therefore, in seeking to further enhance the effectiveness of the production system, the relevance of highlighting the constraint(s) cannot be overstated. As per TOC, there are a number of sequential steps (six to be exact) are key for implementation purposes. In seeking to assess how the theory of constraints can be applied to a system view of the further enhancement of the effectiveness as well as performance of the organization, I will be applying these TOC constructs. To begin with, there is need to not only identify but also highlighting the specific system component that gets in the way of enhanced performance of the system. Wilkinson, (2013) points out that the identified constraint could either be internal or external. TOC dictates that changes to be institutes ought to begin from the said system component. This is more so the case given that focusing on other elements is not likely to have a significant impact on the system’s global performance (i.e. performance as a whole). According to Wilkinson (2013), there is often a constraint (or several constraints) within each system – effectively meaning that the relevance of identifying the said constraint cannot be overstated as far as proper management is concerned.
Next, upon the identification of the constraint, there is a need to make a decision regarding how the constraint ought to be exploited. Towards this end, Wilkinson (2013) highlights the need to ensure that “the bottleneck is being put to its most profitable use.” Third, on deciding on how the constraint ought to be exploited, everything else should be subordinated to the decision arrived at. This is to say that the constraint’s pace of work should be used as a standard in the determination of other system elements’ pace of work. Essentially, in reference to TOC, the relevance of the above two recommendations cannot be overstated especially given their role in the system’s structuring. The next undertaking, system’s constraint elevation, is largely concerned with the further enhancement of the constraint’s productivity (Wilkinson, 2013). Here, TOC permits the whole system’s efficiency improvement by way of making appropriate investments on the same. Thanks to continuous performance improvement, the constraint ought to be overcome. When this happens, another component that gets in the way of the production system’s optimal efficiency should be sought.
It is important to note that appropriate constraint identification is of great relevance. This is more so the case given the business improvement opportunities this presents and the influence it has on the indicators of performance. Towards this end, it should be noted that TOC comes in handy as a constraints management approach. As a matter of fact, this is the role for which it was designed.
Managing Multiple Project Resources
In the words of Blackstone, Cox, and Schleier (2008), “managing projects is a difficult undertaking – a large number of projects fail to be completed on time, on budget, or to specifications.” As the authors further point out, traditional project management literature used to blame the leadership as well as management skills of project managers, lack of managerial focus or commitment, etc. for a myriad of failures on the project management front – especially with regard to issues to do with budget and time. However, “more recently, research has identified underlying problems with project concepts” (Blackstone, Cox, and Schleier, 2008).
In seeking to not only prioritize, but also manage multiple project resources, I would make use of the appropriate TOC project management constructs. To begin with, I would embrace a robust project planning process. On this front, I would ensure that in addition to clearly highlighting the project’s deliverables as well as objectives, I define the factors deemed critical for the success of the project. At the same time, I would seek to bring everybody (all the stakeholders) on board with an aim of ensuring that every person involved is on the same page on key issues in an effort to limit chances of rework. It is at this stage that all the constraints that could get in the way of the successful attainment of the project’s objectives are identified. Next, I would strive to formulate an effective scheduling process. On this front, I would largely rely on critical chain scheduling, as opposed to critical path. In essence, critical chain scheduling “focuses on the critical chain, the longest path of dependent events that prevents the project from completing in a shorter time” (Martinelli and Milosevic, 2016, p. 169). In seeking to determine the critical chain (i.e. the work chain), an assessment as well as evaluation of dependencies between iteration, resources, and tasks would be conducted followed by the establishment of a project buffer with an end aim of ensuring the feasibility of the critical chain schedule.
Third, I would seek to ensure that capacity is further enhanced by way of applying a clear and concise work introduction methodology or approach. It is important to note that as Martinelli and Milosevic (2016) observe, there is need to ensure that the organizational capacity is not exceeded during project work introduction. It is the resulting multitasking that ends up causing capacity reductions. Towards this end, I would make use of TOC constructs whereby a resource that is sufficiently heavily loaded is pre-selected so as to play a ‘valve’ role as far as work release is concerned. The commencement of new project tasks is schemed in time intervals depending on how well such tasks can be accommodated.
Fourth, I would concern myself with project control. In essence, this can be attained by way of the effective management of the buffer. It is important to note that there is need to ensure that the project’s management is not founded on unfounded assertions or unconfirmed claims. Towards this end, there is need to not only assess the various ‘what if’ scenarios, but also have a way of evaluating both present and projected resource loading so as to have a clearer overview of the project status. Lastly, I fully appreciate the need to embrace work behaviors that further facilitate better project outcomes. Towards this end, a concept Srinivasan (2011) refers to as “the relay runner work ethic” could come in handy. According to Srinivasan (2011), as per this concept, “tasks are encouraged to start as soon as their preceding tasks are complete” (234). Thus at the core of this concept, as far as this discussions’ specific circumstances are concerned, is the need for persons charged with a specific resource to be efficient in what they do and avoid time wastage. As soon as a task has been completed and the resource is free, a notification of availability should be sent out so that further tasks are assigned as may be deemed appropriate. Towards this end, multitasking would be discouraged when it is unmerited. Also a culture should be forged where difficulties or challenges encountered are reported as soon as possible with no adverse impact on performance evaluation. It is, however, important to note that the adoption of appropriate work behaviors cannot be successful without organization-wide involvement and commitment. This is to say that all organizational levels, from the top management all the way to the worker level, must be committed to adjustment in behaviors. In the final analysis, I am confident that significant benefits in terms of effective prioritization as well as management of resources are likely to be reaped if the issues I highlight in this section are embraced and implemented.









References
Blackstone, J.H., Cox, J.F. & Schleier, J.G. (2008). A Tutorial on Project Management from a Theory of Constraints Perspective. International Journal of Production Research, 47(24), 7029-7046 .
Elton, J. & Roe, J. (1998). Bringing Discipline to Project Management. Retrieved from https://hbr.org/1998/03/bringing-discipline-to-project-management
Martinelli, R.J. & Milosevic, D.Z. (2016). Project Management Toolbox: Tools and Techniques for the Practicing Project Manager. Hoboken, NJ: John Wiley & Sons.
Wilkinson, J. (2013). Theory of Constraints. Retrieved from https://strategiccfo.com/theory-of-constraints/
Srinivasan, M. (2011). Building Lean Supply Chains with the Theory of Constraints. New York, NY: McGraw Hill Professional.