Department of Quality and Operations Management National Diploma in Operations Management Course: Operation Management MODULE: OPERATIONS MANAGEMENT INTRODUCTION What is (TOC) Theory of Constraints? Theory of Constraints is a typical example of a controllable system, viewed as being limited in achieving its goals by a small-scale or number of constraints. TOC uses a focusing process to recognize the constraints and there is always at least one constraint in the system. Theory of constraints therefore then restructures the rest of the organization around the system. TOC takes on a special phrasing defined as “a chain is no stronger than its weakest link”.
The theory of types created a logical foundation for mathematics as presented by Russell in his 1908 paper Mathematical Logic as Based on the Theory of Types. Russell wrote his type theory in response to ambiguities he found in set theory. “Naive Set Theory”, as we now call it, defined sets vaguely and paradoxically allowed any variable to become a set without restriction. This confusion led Russell to publish his paradox explaining that no set consists of "all sets that do not contain themselves". Russell developed his type theory to be more precise than naive set theory.
Le May et al. (1999), identified job training needs for supply chain managers. These needs are dominated by interpersonal skills (e.g., communication and meeting facilitation), cross-functional knowledge, and office equipment skills. They also suggested supply chain managers should be able to apply project management techniques, organize and coordinate meetings, conduct training, and use decision-making skills. Stank et al.,1998, had focused on the development of personal skills, such as assertiveness, passion, grooming, and dress.
In our game, lack of communication between supply chain parts and unknown customers’ demand are the main reasons of fluctuations in the effective inventory level. To mitigate these problems company should develop perfect communication strategy because with the help of the better communication between supply chain stages inventory holding cost and penalty cost can be minimized. In addition, if supply chain parts avoid updating demand forecast in each stage, probably there would be low cost because fluctuations can be decreased. If we were allowed to communicate with supply chain partners, there could be relatively low cost because we could arrange our order numbers, inventory level with the help of the effective information
Supply Chain Management includes coordination and collaboration between partners, which can be suppliers, intermediaries, third party service providers and customers. Supply Chain Management integrates supply and demand management within and between companies to serve the needs of the end-customer (Council of SCM, 2017). Supply chain risk management (SCRM) is the coordinated efforts of an organization to help identify, monitor, detect and mitigate threats to supply chain continuity and profitability ( Rouse, 2018) . Supply chain risks are the elements which causes non-performance in operations. Effective supply chain risk management is mandatory to have a successful business.
The Theory of Constraints (TOC) is used in identifying the most important factors that stand in the way of achieving a goal. The TOC takes a scientific approach to improvements by hypothesizing every system to ensure it locates the trigger that acts as a restriction. (Rouse, 2011). The TOC process has five main steps. In step one, TOC identifies the constraint is where a manager can figure out which part of the process is keeping them from reaching a goal.
Furthermore, the importance of financial constraints in terms of transport costs has been described in literature as a main reason for delay in accessing health care services (Sorensen et al. 2011; Shiferaw et al. 2013; Bohren et al. 2014). Women often perceive birth and especially complications in delivery as a sudden event that does not give time for preparations (Bohren et al.
Logistic and supply chain managers in the current age have to deal with uncertainty, risk and volatility; they have to keep on preparing for the unexpected. The need for quality and effectiveness means that supply chain has become highly vulnerable to any simple interruptions. Uncertainty is a serious element that will affect the ability of the supply chain to meet the demand of the customers (Waters, 2007). This is the reason why close attention has to be paid to the supply chain management in terms of the standards, methodologies, and strategies. Risk mitigation has turned out to be a hot topic in supply chain management.
PROBLEMS IN THE FIELD OF SUPPLY CHAIN MANAGEMENT Present supply chains are developing in complexity due to several factors. We, the consumers, are requesting products on the correct time and at a reasonable fee. This creates challenges for organizations for the reason that growing each responsive and cost-effective deliver chains is seriously complex. Let me explain today’s most important challenges in supply chain. Globalization One of the biggest challenges that businesses are going through is how you can decrease their supply chain fee.
2. Theory of Constraints: Inventory Management Affecting Productivity Theory of Constraints is a management of systems philosophy developed by Eliyahu M. Goldratt in the early 1980s. The primary argument of TOC is that constraints institute the limits of performance for any system (Mc Nair, 1999). TOC is an all-inclusive management philosophy which entails a systematic reconsideration of some of the most vital beliefs in today‘s organization, concluding in a new approach to tackle problems facing organizations today (Mabin and Balderstone, 1999). Identify the bottlenecks.