At any given point, an organization is bound by certain limitations, which hold it back from achieving its full potential. The limitations lead to various hindrances in the business's operations, which prevents the firm from working at total capacity. To address this issue, there was developed a theory known as the theory of constraints, which focuses on understanding and accepting these limitations (which are known as constraints) and doing the needful to remove them from the organization. For business organizations that are facing a massive hurdle in their working process, the theory of constraints consulting could be a constructive way out, since most issues in the operations can be traced back to some underlying constraint.
Questions to be answered through TOC
Upon breaking down the overall outlook of the theory of constraints into smaller segments, we come up with three questions, which, when answered, can simplify the process of identifying and removing the prevalent constraints. This mainly seeks to chalk where exactly the constraints lie and map out there working in the overall organization.
The second question involves asking what the constraint is to be changed into. Through this question, the issues caused by the constraint are attempted to be mitigated by morphing it into something helpful rather than shelving it into some obscure corner of the operations. The last question to approach is that of how the constraint can be changed. This step calls for acute brainstorming and complex problem-solving skills, wherein the behaviour of the constraint is understood, and a framework is developed through which it can be changed. This is usually the step wherein business organizations may have a tough time, which is when opting for the theory of constraints consulting may be a good idea.
Tools involved in TOC
The theory of constraints calls for the usage of numerous tools that are necessary in order to go about the entire process of zeroing in on the constraint, understanding its behaviour and then taking the necessary steps to remove its presence from the organization. While various theories of constraints consulting firms may make use of their unique tools, here are some of the most common tools that are used in order to approach the theory of constraints.
- The thinking processes – The tools that fall under the purview of this approach are based on the usage of logic. These tools aim at identifying the constraint by focusing on the causing factor and then using the most logical way out in order to address the concerns. The focus is on breaking any pre-emptive assumption and following through with nothing by ironclad logic.
- The five focusing steps – As the name suggests, this tool calls for the usage of five essential steps, after the end of which, the constraint would have been eliminated to a large extent. The first step invariably involves identifying where the constraint lies and what it does, followed by the exploitation of the constraint. In the third step, the working of every other aspect is subordinated to the functioning of the constraint, after which it is removed by elevating it. The last step involves heading over to another constraint with the help of the inertia propelling them forward, and then the same process is continued.
- Throughput Accounting – This tool shirks away from the idea of allocating a large number of resources towards the constraint but rather focuses on the idea of making efficient usage of the constraint by increasing the throughput.
Conclusion- The bottom line is that there are numerous spokes that are working together in order to maintain momentum in the wheel of TOC. Business organizations that seek to consult for it will most likely benefit from it a lot compared to those who choose to shelve the constraint since TOC is a highly integrated approach when it comes to improving the operational and administrative capacity of any organization.
