Question

(Required Words 300)

Explain in detail Eliyahu Goldratt's Theory of Constraints with a brief note on its application in project management?

Answer 1

Theory of Constraints (TOC) can be seen as a management concept which was derived by Dr. Eluyahu Goldratt. This concept can help the managers to explain the below-mentioned question:-

What are the different elements which can be changed?

If change is implemented then what would the newly changed output

What process has to be adopted for the change?

This is management concept which tries to facilitate the probable and most feasible solutions of various practical issues and problems.

The main focus of TOC remains on efforts, attention and energy to be directed towards the system constraints. The performance of the entire system is restricted by this bottleneck or constraints. At the same time, it also shows the main influential point for having some improvements. In simple words, we can say that TOC is nothing but to find out the different types of constraints and how to manage them most effectively.

In order to fulfil the objective of TOC, the focus of management has to be shifted to the increased flow of throughput derived by the system from optimizing the different functions assets and resources. The main focus of TOC is on overcoming the different types of barriers which can cause the smooth functioning of the system

Application-

By implementing the TOC to project scheduling, we can develop the “critical chain “ method. Critical Chain Project Management is a concept which is used in Project Management depending on TOC which alters the manner in which dependent events, risks and uncertainty can be managed quite effectively in the project organizations.

Apart from this, this method is also useful in having the proper management of the resources which are being shared by a number of concurrent projects or activities. Apart from this, TOC is also quite useful in the various areas of project management such as cost management and project risk management.