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Saturday, November 08, 2014

Applying Theory of Constraints to Manage Bottlenecks

A bottleneck can be defined as a point of congestion in a system that occurs when workloads arrive at a given point more quickly than that point can handle them, creating a queue a longer overall cycle time in the process line.





The theory of constraints is an important tool for improving process flows. The implications of the theory are far reaching in terms of understanding bottlenecks to a process and better managing these bottlenecks to create an efficient process flow.
The theory of constraints is an important tool for operations managers to manage bottlenecks and improve process flows. Made famous by Eliyahu M. Goldratt in his book The Goal, the implications of the theory are far reaching in terms of understanding bottlenecks to a process and better managing these bottlenecks to create an efficient process flow. Simply put the theory states, “the throughput of any system is determined by one constraint (bottleneck).” Thus to increase the throughput, one must focus on identifying and improving the bottleneck or constraint.
Goldratt in another book, "Theory of Constraints", outlines a five-step process to applying the theory:
  1. Identify the process’ constraints
  2. Decide how best to exploit the process constraints
  3. Subordinate everything else to the above decisions
  4. Evaluate the process constraint
  5. Remove the constraint and re-evaluate the process
More Information: Six Sigma. http://www.isixsigma.com/methodology/theory-of-constraints/applying-theory-constraints-manage-bottlenecks/

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