Theory of Constraints Strategy (Chapter 18 of Theory of Constraints Handbook)

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Publisher Description

This is an individual chapter of Theory of Constraints Handbook. Over the previous 20 years, some amazing leaders have actually shared a wealth of knowledge on approach. If you have actually checked out bestsellers such as CollinsâEUR ™ (2001) Good to Great, you may wonder exactly what the distinction is in a Theory of Constraints (TOC) approach. The answer, in one word, is focus. TOC approach is as much about opting to refrain lots of things, as it has to do with focusing on the single greatest leverage point of a company. TOC assumes that within every complex system, there is âEURœinherent simplicityâEUR and limited resources. This indicates that there are few restrictions (leverage points) that determine the performance of a system. With limited resources, a good approach must determine the constraint and apply those limited resources to press the most out of it. This chapter outlines how the 2 different types of TOC approach âEUR" Strategy and Tactics Trees and Thinking Process âEUR" achieve a good approach. It illustrates generic strategies in Manufacturing, Distribution and Project Management, showing how marketing and sales are an important part of any good approach. Lastly, the chapter concludes with how to incorporate other methods, such as Lean and Six Sigma, and human habits models, into an overall approach.

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