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The Practical Aspects of the Theory of Constraints Application

Journal: Scientific Bulletin of Mukachevo State University. Series “Economics” (Vol.4, No. 2)

Publication Date:

Authors : ; ;

Page : 101-105

Keywords : Theory of Constraints; TOS; TOS practical aspects; TOS efficiency; logistic system efficiency;

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The practical aspects of the Theory of Constraints application have been investigated. It has been noted that Theory of Constraints methodology is universal and its application in wide fields, particular in the management of production, project management, marketing, logistics. The TOS tools can create fundamental problems, identify hidden reserves of enterprises, and offer methods for solving crisis situations. The necessity of logistics systems continuous improvement and improvement of logistic service level is conditioned by constant increase of client's requirements and competition intensification, which substantiates the necessity of Theory of Constraints tools using in the enterprises management. The main purpose of this work is to analyze the practical aspects of the Theory of Constraints application, which not only can increase the management efficiency, but can also create company's stable competitive advantages in the market. The Theory of Constraints main tools and advantages of Theory assumptions application in different spheres have been investigated: production inventory management, production logistics, distribution, optimization of logistic activity. The indexes of TOS tools efficiency application have been given, which allows to increase the timeliness of orders execution by 43%; reduce production cycle time to 75%; increase sales by 65%; reduce inventory by 49%; reduce project execution time by more than 20%; to achieve a general improvement of financial results by 73%. It has been noted that the effectiveness of the Theory of Constraints application in practice is confirmed by the fact that most large companies have applied the TOS approach in their activities for many years. In particular, companies such as General Motors, Boeing, Motorola, etc. use TOS in their activities have applied the TOS approach. The urgency of the Theory of Constraints application is also that the theory allows the company to provide a constant movement towards the perfection of its achievement. After removing one limitation, which at the moment was the key one, we search for the next one, and so on.

Last modified: 2021-08-19 18:40:59