Theory of Constraints Handbook - James Cox Iii [380]
Summary
The real strength of TOC lies in the thinking that forces an organization to explicitly identify and focus on its biggest leverage point—the constraint of achieving the organization’s goal. TOC provides a strategic tool, the 5FS, to identify the constraint, and S&T Trees to detail and communicate the detailed steps and expected results. The TOC TP provides a way to overcome problems if you get stuck at any one of the 5FS. Any strategy can be expressed using one of the two TOC formats—S&T Tree or FRT. While some elements of each format can be mapped to each other, the detailed content and organization are quite different.
Generic TOC strategic and tactical solutions exist for common industry problems. Such solutions in the public domain (see Introduction for Website reference) exist for manufacturing flow, for distribution of discrete products, and for projects. All such solutions provide three essential elements—the logistics to build a decisive competitive edge, how to capitalize on it through sales and marketing, and how to sustain it with processes that deal with capacity issues.
Other methodologies, such as Lean and Six Sigma, can and should be integrated with TOC to provide a comprehensive solution to any organization’s strategic needs (See Chapters 6 and 36). The top management team must decide how to integrate methodologies to focus on Throughput, or risk confusion and in-fighting over which methodology is “best.” To execute strategic changes quickly, without top management constantly force-feeding, human behavior and communication skills are essential. Today, there are proven scientific approaches to positively improve human behaviors.
TOC strategy, by itself, is not the complete answer to an organization’s needs. At the same time, any organization without a TOC strategy is definitely missing a great deal.
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