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Theory of Constraints

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Theory of Constraints


(The question applies to all types of production such as production of goods or services, cars or software, production of cell phones or managing restaurants)

Answer: List of major reasons may be summarized as follows:

1. Within any organization different sections or departments find it difficult to interface with each other. This may be because they are too busy with their own tasks to worry about other parts of the organization, or it may be that they have (or regard themselves as having) different interests and objectives.

2. Unpredictable changes in the weather, a 'health scare' story in the press, and so on, can all introduce turbulence.

3. In many organizations the responsibility for acquiring the inputs to the operation and distributing its outputs to customers is not given to the operations function. For example, the people who staff the operation are recruited and trained by the different function. So sometimes there is a misfit in the hiring.

4. Service delivery by every individual is different compared to service delivery by every product so calibrating everyone to the same level to achieve and perform the best equally is never possible.

5. Improper Forecasting can be another reason for not being able to manage production. It could lead to either over-production or under-production & long lag time.

6. Poor processes & procedures are another reason of not being able to manage production effectively. Without proper standardized process, the outcome will not be standard and inefficiency will seep in.

7. An enterprise may need to depend on several third party partners for raw materials, labour etc. Managing them and getting their inputs on time is another challenge.

8. Demotivated employees, lack of proper efficiency & lack of desired quality from the workforce could be another reason.



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