Theory of Constraints Research Paper Example | Topics and Well Written Essays - 750 words - 1

Theory of Constraints - Research Paper ExampleOnce the organization defines its goals and there is agreement on how to judge the achievements toward the identified goals, it possible to apply the TOCs five focusing steps. From the case scenario, the primary goal of the HMC is to develop a lean production system that considers the expenditure for any purpose other than value creation for the end customer is wasteful. The TOC five focusing steps are applied to the HMCs sum up filament below. Identify the simpleness Even though HMC generates majority of its sales from the assembly area, the assembly side of the company is not very efficient currently. Another constraint to the HMCs supply concatenation is that it does not have adequate space capabilities to maintain its large scale assembly operations. In addition, the company has never modified its initial layout since its establishment and this issue causes a series of ongoing production inefficiencies. Exploit the constraint I n this phase, the organization has to cut down its inventory passel to the targeted level. Evidently, this practice would assist the organization to improve space utilization in the plant. Subordinate to the constraint In order to improve the production cycle time, the truehearted has to replace its weaker labors with highly developed technologies. In addition, the HMC may make some special arrangements with its suppliers to reduce its expediting and obsolescence costs. Furthermore, the organization has to identify and eliminate any supply chain activity that does not create value for the end customer. Elevate the constraint It is better for the organization to develop its plant capacity so that it commode exculpate more assembly operations efficiently. Identify the new constraint Once the HMC finished the above steps, the management has to watch for new constraints developed. 2. Theory of constraints in logistics The touch on of logistics is of vital importance in a lean produ ction system because a lean system is specifically concerned with elimination of wastes (Lean logistic understanding). Logistics can be simply referred to the management of resource flow between the point of origin and point of distribution. The TOC is very helpful to detect any constraint that affects the hard-hitting flow of resources. Timely identification of constraints in resource flow would aid the firm to remain competitive in the automotive industry. In case of HMC, constraints in logistics create some other potential operational challenges for the organization. The TOC can be applied to logistics to timely identify some other unavoidably in supply chain management. For instance, lack of plant layout upgradation is a potential constraint that reduces the efficiency of logistic management. By applying the TOC, it is possible to identify such plant modification needs and thereby keep the plant unaffected of production inefficiencies. In addition, the TOC would assist the log istics management to improve the organizations production cycle time by identifying inefficient labors and malfunctioning machineries. The organization can compare current logistics activities with those of previous years with the help of TOC. This practice would benefit the organization to clearly identify areas of avail and enhance its market share growth. Lucent Technologies Lucent Technologies is a US based multinational telecommunications corporation that has applied the TOC to its supply chain. Like other