Theory of Constraints T.O.C.

By Ana Mara Londoo Leudo

The TOC is a method of organizations continuous improvement applied to diagnose and fix troubles of the companies no matter the size of them, with the aim of the companies reach its goals. What is the goal? To answer this question depends on which type of business we are talking: with profit or nonprofit. The nonprofit generally has specific objectives of its productive activity for example an Educational Institution aims to increase the quality of education each year, and as goal in hypothetical way for example, increase the ECAEs score. Then in these businesses the goal depends on how can you reach these objectives. In Types profit companies its principal goal is to generate money from now and for the future. But companies make money to stay in the market, to satisfy their own needs, of the shareholders, and of the workers. How much we can earn? But what do not allow us to reach that money? Something called Constraint or limitation. A limitation is as a stone in the shoe, if we want that the organizations flow and progress is important to overcome all the obstacles. Its like a process that is done wrong and It does the whole enterprise is at this rate. Exist two types of restrictions: physical and political; in physical are all of the sources that at any time are considered finite. For example the raw material, the market, the machinery...Etc. when we are talking about the political type, we refer to paradigms and organizational troubles, all this occurs in middle of supply, operations, and market changes. How can we overcome these problems? First, we need to take one of the two learning methods, the Aristotelian method (Based on observations I can give a solution) or the Socratic method (based on questions made by the same person I can give a solution). Unfortunately if we base on the Aristotelian method to resolve the enterprises problems we can solve in a short term, only give a solution to one of the problems, not at all. If we base on the Socratic method and ask questions to ourselves we can without knowing make a diagnosis of the company, if we ask correctly we can find the solution of the troubles. And taking in consideration the learning of the Socratic method, we can implement a cycle called continuous improvement process that present us the questions: 1. What needs to change? Identify our weaknesses 2. What its going to change in? Expose a possible solution 3. How to create change? Methods to implement changes Another item mentioned below is the base of the T.O.C. and the continuous improvement process. Here are the steps to overcome the limitation: 0.0 Identify the goal (To know what are your goals) 1.0 Identify the constraints (To know what troubles do not allow us to reach the goal) 2.0 How to exploit the limitations? (It is to convert the troubles in a strategic tools) 3.0 Subordinate everything to the limitations ( when we decide to change the limitation all of our decisions should be focused to overcome the constraint) 4.0 Overcome the limitation: (its to make most productive possible a company or institution) 5.0 Back to step one: (there it shows the improvement must be cyclical, because always in all the systems we going to find constraints.

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