Inside the Theory of Constraints

Published by MBA Skool Team, Published on November 18, 2013

The constant changes in the business world lead us to a question, whether our methods and ways of understanding the various problems which we face are correct?

In the field of logistics and distribution, these changes are even more obvious and any procedural innovation and change affects existing structures. That is why if we assume the role of a consultant in theory of constraints, we are facing the traditional approach in business strategy.


In organizations, on the issue of distribution, there is a tradeoff between TOC consultant and current manager. The TOC consultant recommends incorporating a new logical distribution of goods while the current manager objects. Both have the same purpose, which is to be a profitable venture. Based on the consultant's arguments in TOC, in order to become a profitable, need to create a control system for demand and shipments for attaining this requires incorporating new goods distribution logic.


On the other hand, if we consider the contention of the current manager, in order to be a profitable company, it needs to ensure the delivery of goods to the consumer and to achieve this, it is necessary to incorporate a new logic of distribution of goods.


Below is the way in which this dispute has to be resolved, with respect to TOC consultant, considered important to incorporate a new logic of distribution of goods because they help generate an increase in the level of sales, would feasible to meet the needs of customers and increase the number of shipments.


Costs are likely to increase, but these can be folded to increase the level of sales that will be based on customer consumption. These adjustments in the organization will bring new work habits that are considered desirable to reach the change in mindset that is required to consider that we have a company that is becoming more profitable.


On the other hand, the current manager, believes that if you join a new logic of distribution of goods would be very difficult trying to modify the work mentality is deeply rooted as it tends to leave everything to the last moment, just do not have enough interest to improve the organization as workers feel that they receive tangible benefits for them.


All this is underpinned with the belief that customers prefer the same attention as they are used to and do not recognize other forms of service. All this leads to a significant organizational resistance to change in the method of work , so the change would not be relevant in a new distribution logic.


In order to find a solution to this controversy, we find that the TOC consultant rightly considers that to achieve a system of checks on consignments demand should incorporate new goods distribution logic because to be a company cost is necessary to address the control system demand shipments for the workload of the staff may be reduced at the end of each period. To accomplish this, you will need to incorporate new goods distribution logic that requires more effort at the beginning of each period and not the end. Likewise ensure delivery of goods to the consumer.


The proposed solution to this controversy is to influence new work habits that produce tangible benefits for workers result in a change of mind in order to help you be a profitable venture. By knowing the expected demand may be straining from the beginning and not leave everything to the end of the working period . Best use of time as a tangible benefit.


You can check this solution because in order to influence new work habits that reflect a better use of time and tangible benefits to the worker will be possible, the latter undergoes a change of attitude towards the organization, re-evaluating their source of income and therefore achieve better standards of customer service reflecting an increase in expected sales .


On the other hand, if the worker can foster the beginning of each period of work to practice a better use of time will have access to a worker's change of mind regarding the organization, allowing the change of the distribution system.


This change can be implemented to improve some of the conditions of workers making tangible some of their demands, desires, and better use of time. A reorganization of inputs so that every effort is made at the beginning of each work period would help to reinforce the change of mentality because it would proceed differently than usual.


At the time the employee detects an increase in sales due to its interference in a better standard of customer service, you will feel part of the organization and will be reflected in tangible benefits such as desired by him.


To achieve its implementation must exceed the following obstacles:

• Change in the structure of time use.

• Establish a plan to improve tangible benefits.

• Do check the level of customer service today and the place you want to reach.

• Achieving a change of mentality in the workers.

• Change in the distribution system.


These obstacles can be overcome through a campaign of monitoring and support that brings the worker to the organization, which achieves its strong involvement and must.


Finally , we conclude that in order to become a profitable business, which is what every entrepreneur wants, and in the caption of the distribution, it is necessary a change of mentality in employees at all levels and strata. Likewise, it must implement a distribution system that meets current demand, shipments continuous increase in the level of sales, improved customer service quality and ensure delivery of the goods to the customer desired.

The article has been authored by Miguel Nava, UIA Leon

References :

Goldratt , Eliyahu , Theory of Constraints , North River Press , Great Barrington , MA . 2011 . Pp 160

Goldratt , eliyahu , Is not It Obvious ? , North River Press , Great Barrington , MA . 2009. Pp 232

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