The Theory of Constraints can apply to any business that has a process with a bottleneck or constraint. It's not limited to production-based companies. The theory can be used to identify the weakest link in any process, whether it's a service-based business, a retail business, or even a non-profit organization. Once the constraint is identified, strategies can be developed to manage the constraint and improve the overall performance of the business.
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The Goal uses simple reasoning as a tool to teach the Theory of Constraints (TOC) by presenting the theories in the form of a novel. The TOC, a method...
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The lessons here are woven into a story about a production-based company and the new manager. The main character, Alex, approaches his new position armed with all the conventional management techniques and gets to work. Readers will probably be familiar with this scenario. Alex's first goal is to improve efficiency. He works on cost-effective purchasing, quality control, customer satisfaction, and all those other things that traditional business management dictates. But all those theories and all that work didn't create any additional profit.