How to increase production capacity

In order to increase production capacity, a business frequently sets important goals. The theory of constraints is an approach utilized by the majority of businesses to identify the biggest limitation impeding the achievement of the objectives set in place within an organization. The method often makes the system better up until the point where the restriction is no longer a limiting factor. When organizations use the notion of constraints in their production planning, they typically receive a number of advantages. For instance, a rise in profitability because the factors that could facilitate production can be identified quickly to allow production to take place. Some of the other implications are as discussed below.

The comment by the operations manager that they do not have any constraint in the company hence the firm can produce the master schedule for some time can be attributed to the fact that constraints exist in all the working sorroundings.However, there are some situations that a company may not be able to identify the various constraints. Also, an organization may be too focused on the goals of the project to find enough time to recognize the limiting factors (Watson et al.2007). In the avoidance of getting the constraints, the constraint management team is usually tasked with planning and control to eliminate the different constraints. The plan involves the development of optimal schedules typically. The management often uses a complicated algorithm with the aim of attaining the set objectives in a particular project by considering the time, quality and cost that would be involved in the completion of the production process. Further, the constraints may be reduced in an organization by the control which includes both the implementation and plan. The implementation process involves resource allocation typically and works assignment and supply chain management. The identified constraints help a business enterprise to lower the number of uncertainties that exist hence increasing the transparency of management of projects (Watson et al.2007).Additionally, the elimination of constraints helps in the understanding of the causes of disputes and conflicts that may arise in the attainment of particular objectives.

Implications of theory of constraint on other functions in the organization

The theory of constraint (TOC) usually affects the other functions in any particular firm. This is based on the fact that various functional departments of an organization require certain factors which could be lacking and not easily identified by the heads of the departments. The TOC aids in the identification of those limiting factors that may hinder the achievement of specific goals of an organization.

Implications of theory of constraint on marketing

The TOC has had an impact on the value that is provided to the customers by different organizations. The improved value to the customers is usually achieved through the identification of some of the limiting factors that may hinder the provision of quality products to the consumers. Also, the varying demands and needs of the customers can be identified through the approach which will enable a firm to improve the quality of services and products offered to the customers. According to Davids et al. (2008), the theory of constraint can also be used as a competitive advantage by a particular company as a competitive advantage over its principal competitors in the market.

The TOC usually achieves this by enabling an organization to produce value adding product and services which are based on an improved process identified upon recognition of the limiting factors. Further, the theory of constraint has had an impact on the type of technology used in marketing. It scans the environment to identify the advanced technology used by other big companies. This helps in the application of quality marketing strategies.

Implications of theory of constraint on Engineering

The TOC has become relevant to software engineering. It usually has an impact on the real value of a proposed project.This is attained by identification of the limiting factors in a particular project to arrive at the exact amount of the proposed project. Another critical impact is on the improvement of new products to the market. The theory of constraint is often used develop the right sales and marketing approaches that aids in materializing the value of the user of the software developed. It also has an impact on the flow of inventory in an engineering organization by providing the managers with knowledge on bottlenecks thus improve process flows (Davids, Button & Bennett, 2008).

Conclusion

In summary, the theory of constraint has enabled organizations to prosper since they can be able to identify the limiting factors in the attainment of certain critical objectives. The TOC has had several impacts on both marketing and engineering sectors. For instance, it has impacted on the value of products and service offered to the customers by identifying the needs and demands of the consumers. A key effect on engineering is the determination of the real value of a particular project to be done in a software organization. A company can eliminate the constraints plan and control that would enable it to produce a master schedule for some time.

References

Davids, K. W., Button, C., & Bennett, S. J. (2008). Dynamics of skill acquisition: A constraints-led approach. Human Kinetics.

Watson, K. J., Blackstone, J. H., & Gardiner, S. C. (2007). The evolution of a management philosophy: The theory of constraints. Journal of Operations Management, 25(2), 387-402.