The Theory of Constraints is a management theory that states that any management system is limited in achieving its goals, and the limitation is due to the presence of certain constraints. There is always at least one constraint present in any management system. Constraints are what keeps the company from achieving its goals. The creator of the theory of constraints, Eliyahu Goldratt, described management systems as being like chains or groups and networks of chains. Each event is dependent on the event that precedes it (SPC for Excel: Theory of Constraints). All processes in the organization have some form of dependency; that is processes are dependent on other processes in the organization. If a force is applied to both ends of a chain, it will break sometime at the point of its weakest link. Thus an organization is strong only as far as its weakest link. The focus of management therefore is on strengthening these weak links, through the five focusing steps: The first is identifying the constraint – is the constraint physical or is it policy based? The second step is then deciding on how to exploit the constraint, or to take everything that one can out of the constraint; and then subordinate everything else, followed by elevating the constraint. This means that the constraint is allowed to operate at maximum effectiveness. and finally returning to the first step once more, as the cycle actually never ends (Dettmer, 15).
In many manufacturing and service organizations, one constraint is the bottleneck issue. Thus the theory of constraints will compel a manager to identify the bottleneck. For instance, in a production line, if the packing of finished products into boxes is too slow, then the constraint is definitely in the packing area. The constraint is then elevated and focused upon, additional resources are poured in such as additional training for the packers, additional equipment to aid in packing, and the like.
What is practical about the Theory of Constraints is that it allows managers and even ordinary people to focus on the points in production or innovation that would be a source of problems such that the end objectives are not achieved. Constraints are seen as the key to improvement, and become the foundation for continuous growth. A constraint that remains unchecked will cause problems for the organization in terms of lost capacities, which in turn means lost sales and lost profits. There are tools to battle the constraints, and these are always available to managers. For instance, project managers may make use of critical chain project management tools in order to pinpoint the constraints that will prevent the project from being finished comprehensively and on time (Theory of Constraints Institute: What is the Theory of Constraints?).
In one’s own personal life, the theory of constraints can be applied in many ways. For instance, if one wishes to retire from office work and simply work from home, he then considers first what he could do while working from home. If one would like to write from home, or sell some products online from the home, then certainly one would need the right equipment in order to write, and in order to sell the desired products online. The main constraint would be computer equipment. It would be difficult to perform writing using a tablet, unless one would write a few pages here and there. But if one was going to write technical reports, grants and similar pieces of work, then a laptop with a speedy word processor and enough storage for the forecasted number of documents would be important, and therefore, procuring a good computer which will satisfy all the needs when one does begin to work from home will help eliminate this constraint.
Therefore the Theory of Constraints is a practical tool not only for professionals, but also for the ordinary person wishing to engage in commerce, and even for a housewife who wishes to organize her household. What is important is that the constraint is defined and identified. It is brought to the fore, and people think about how they bring about the best in the constraint such that it ceases to be one.
Upon reflecting on the teachings of the Theory of Constraints, several insights come to mind:
It is indeed a practical to apply the theory in almost any endeavor where noble objectives have been created. One can apply it professionally or even in one’s personal activities;
There is a bundle of tools available for use in order to maximize the constraint and eliminate its being a liability. Most of these tools do not cost much; however, one may need to add resources such as equipment and manpower, or spend for training if necessary;
Anybody can apply the theory for as long as he is willing to study and understand the theory, and that he will not be afraid to make mistakes along the way.
References
BPI Consulting LLC. Theory of Constraints. 2014. Web.
Dettmer, William. Goldratt’s Theory of Constraints: A Systems Approach to Continuous Improvement. 2000. Milwaukee, WI: ASQ Press. Print.
Theory of Constraints Institute: What is the Theory of Constraints?. 2016. Web.
