Question

Research The Theory of Constraints by Eli Goldratt. How does this theory apply to the operations of a current or prior employer?

Answer 1

Theory of constraints is a mechanism of organization change with the objective of improving profits of the organization. Usually a constraint in an organization is one, which stops or becomes a barrier in the path of the organization to achieve profits. The theory of constraints helps in establishing a mechanism to manage these constraints.

In my current organization, theory of constraints (TOC) is used to manage bottlenecks. It is a manufacturing company and steps are taken to identify bottleneck in each business process, which may impact the rate or quality of production. Constant monitoring is done so as to avoid the probability of any firefighting situation. This results in higher profits for the organization.