Strengthen Your "Weakest Link" By Applying
The Theory of Constraints
No matter what field you
work in, there is often scope for boosting performance. A simple way of
doing this is to identify and eliminate "bottlenecks," or points of
constraints.
But how do you identify
these bottlenecks?
One approach is to use the
Theory of Constraints (TOC). This
helps you identify the most important bottleneck in your processes and systems,
so that you can deal with it and improve performance.
The Theory
Have you heard the phrase,
"A chain is only as strong as its weakest link?" This is the basis of
the Theory of Constraints. It was created by Dr Eli Goldratt and was published
in his 1984 book "The Goal."
According to him,
performance in any organisation is dictated by constraints. These are restrictions
that prevent an organisation from maximising its performance and reaching its
goals.
These constraints can
involve people, supplies, information, equipment, or even policies, and can be
internal or external to an organisation.
The theory says that every
system, no matter how well it performs, has at least one constraint that limits
its performance – this is the system's "weakest link." The theory also
says that a system can have only one constraint at a time, and that other areas
of weakness are "non-constraints" until they become the weakest link.
You use the theory by
identifying your constraint – your weakest link - and changing the way that you
work so that you can overcome it.
The theory was originally
used successfully in manufacturing, but you can use it in a variety of
situations.
Applying the Theory
Let's look at a
step-by-step process for using TOC.
Step 1: Identify the Constraint
The first step is to
identify your weakest link – this is the factor that's holding you back the
most.
Start by looking at the
processes that you use regularly. Are you working as efficiently as you could
be? Or are there bottlenecks? For
example, because your people lack skills or training?
Remember that constraints
may not just be physical. They can also include intangible factors such as
ineffective communication, restrictive company policies, or even poor team
morale.
Also bear in mind that,
according to the theory, a system can only have one constraint at a time. So,
you need to decide which factor is your weakest link, and focus on that.
Step 2: Manage the Constraint
Once you've identified the
constraint, you need to figure out how to manage it. What can you do to
increase efficiency in this area and cure the problem? - Goldratt calls this
"exploiting the constraint."
Your solutions will vary
depending on your team, your goals, and the constraint you're trying to
overcome. For example, it might involve helping a team member delegate work
effectively, modifying lunch breaks or vacation time to make workflow more
efficient, or reorganising the way that a task is done to make it more
efficient.
Step 3: Evaluate Performance
Finally, look at how your
constraint is performing with the fixes you've put into place. Is it working
well? Or is it still holding back the performance of the rest of the system?
If the constraint is still
negatively affecting performance, move back to step 2. If you've dealt with the
constraint effectively, you can move back to step 1 and identify another
constraint.
At this point, I know what some of you are saying: Where are the bullet points? I need bullet points to follow!
No problem. Here you go:
Sum Up
Dr Eli Goldratt developed
his Theory of Constraints in his 1984 book "The Goal."
The theory says that every
system, no matter how well it performs, has at least one constraint that limits
its performance. You use the theory by identifying your constraint and
restructuring the way that you work so that you can overcome it.
You can minimise
constraints and work more efficiently toward accomplishing your goals by
working through these steps:
1 Identify the constraint.
2 Manage the constraint.
3 Evaluate performance.
One final note: Remember that the theory
says that every process has at least one constraint. While this may be true, be
sensible in how you apply the theory – sometimes removing this constraint will
have a minimal impact on performance.
I hope this helps your business be brilliant.
That is all -
David
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