Essay Sample on Critical Chain: Dr. Goldratt's Theory on Constraints & Productivity

Introduction

Discussing Constraints are adverse elements that limit productivity "Critical Chain," by Dr. Eliyahu Goldratt gives the perspectives of the constraints that limit productivity and how the application of the Critical Chain theory of Project Management. The plot centers on the story of the professor who makes efforts to sustain his incumbency at the university's business school. The idea behind the novel is to maintain the interest of the subject and provide the reader with real-life experience on the event occurrence. The novel's plot is based on the four facets: professor's effort to secure incumbency; a business school grapple to enhance its enrollment; teaching philosophy; application of the Theory of Constraints to project management. Towards the end of the novel, the author states that the educational system must be transformed to include the dynamic business world. The book goes through strings of phases to develop the principle. Then, it offers a lead on the Theory of Constraints and its relationship on execution in a steel mill. It further demonstrates the implementation of the Theory of Constraints on schedule constraints, resources, generation, and multiple projects.

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Dr. Goldratt's Critical Chain Method has its roots in the Theory of Constraints (TOC). The perspective of the theory of constraints (TOC) is that any manageable system is restricted in attaining its goals by a few constraints (Goldratt, 2017). The theory was based on the modern principle of measuring success at the work center (throughput and cost) and demonstrating how both are self-contradictory. The Theory of Constrains gives a concrete set of tools in project management, they include the thinking process (an instrument for assessing and solving problems); five focusing steps (approach for identifying and eradicating constraints); and throughput accounting (the technique of gauging performance and administrating management decisions). The ideology maintains the cost throughout the model at odds with each other because the relegation process lessens effectiveness. Therefore, appraisal standards for property managing a work center needs to modify to suitably reward the organization's success (Goldratt, 2017).

Based on my understanding, the knowledge on the Theory of Constraints gathered from the book gives a detailed understanding of alarming situations in management, and how to tackle it. There are different constraints that I am coped with, and the knowledge from the novel will apply in assessing different challenges that limit productions at a personal level (such as in studies, investing, etc.), and develop decisive solutions that will maximize my resources and ensure desirable optimum production and efficiency. The significance of the knowledge is that it provides different tools of project management, which have different levels of effects in restructuring the system of productivity. I believe that the ultimate advantage of the book is making the reader have a professional view on the constraints and gain confidence in how to heighten the production with TOC. The narrative in the novel demonstrates the examples and applicability of the TOC for the reader to relate the situations and the principle used, and this gives confidence to the reader and develops hand-to-skill knowledge.

Application

The theory of constraints in a workplace ensures that the managers counter the everyday constraints to attain the company's primary goal of promoting productivity. A constraint is any internal or external element that limits the system from archiving its goals. TOC defines the element that limits the system's progress and proposes the solution to eliminate the element (which is a constraint). The theory of constraints is an essential instrument to improve process flows, and its implication is common in understanding the bottlenecks to a process, together with the effective management of these bottlenecks in developing an effective process flow (Goldratt, 2017).

In manufacturing operations management, I experienced the application of the theory of constraints where it prevented bottlenecking but ensured resource exploitation. TOC is the logical approach to effective management practice whereby it focuses the management attention on a few constraints to success and profitability. The five focus steps of constraint management were used to safeguard perpetual improvement through synchronized manufacturing. Goldratt (2017) gives the major principles as applied in the manufacturing operation management synchronization, they include: 1) recognize the constraint resources; 2) create key buffer sites to protect material; 3) plan the constraint resource; 4) release material at entry operations to capitalize on production at the constraint resource; and 5) for high levels of due date performance, forward work scheduling is applied to follow the constraint resources.

The Thinking Processes under TOC apply at the workplace in problem-solving methodology through constraint management in manufacturing. According to Goldratt (2017), the thinking process is enhanced for intricate systems with different interdependencies in manufacturing lines. The tool worked to identify the root cause of the particular problem in manufacturing, the changes to be made to resolve the problems as well as the actions that will lead to change. For example, the workplace manufacturing line was faced with the problem of unfavorable products that led to the complaints from the quality check department. The Thinking Processes applies to identify that the problem of low-quality output was due to one of the resources in the input that failed to meet the required standards for the manufacturing process.

On the other hand, Throughput Accounting, under TOC, was significant at ensuring that the efficiency in production is maximized by the elimination of the undesirable elements and behaviors in productions that act as constraints. The application of TOC at this level ensured that the cost of production is emphasized and the unnecessary expenses are cut-off but ensuring that the production is at the optimum (Goldratt, 2017). Due to the modern machines in production at the workplace, some of the workers are laid-off to cut the labor cost, and the borehole dug within the production site to cut the exorbitant water bills.

Indeed, the procedure given by Goldratt (2017) leads to various advantages in the optimization of the production, but at the same time minimizing the expenses and risks in productions. Some of the improvements experienced in this form of production process include decreases cycle time, reduce the leads time, reduces inventory, improves capacity, improves due date performance, increases throughput, and improves the entire system.

Conclusion

To windup, Dr. Goldratt's novel has presented a logical perspective of the practical understanding of the effectiveness of the Chain theory of Project Management, as well as the process of application and the possible result. The ideas from the book "Critical chain: A business novel "are essential in the decision-making process within an organization, and applying practical measure that will eliminate constraints in the daily operation, hence maximizing the profit. The reader will attain some managerial standards by being effective in viewing the issues in an organization from a different perspective and at the same time be able to generate respective solutions.

The ideas and the theory presented in the book are practical. The book is interactive to the readers, an individual "professor" is presented, who finds himself in different situations grappled with different decision-making issues to ensure productivity and implement the Project Management principle. At first, the reader gets into the dilemma of what should be done in such a solution, and then it settles the suspensions by applying different principles towards the issue. The reader gets the picture of the situation, which he can relate to previous encounters, and appreciate how practical the ideas given in the book can be helpful.

The ideas in the book were uniquely organized rather than designing the flow of the theories as to the project manager's guidebook; the author presented it as the written novel to give the reader a clearer and big picture on how to relate different issues with the theory. The reader is taken through the whole situation before getting to the ultimate solution to the problem.

I consider recommending the book to the people who tend to face managerial challenges and yet they have little knowledge to resolve and make decisions in project management. Besides, the book targets prospecting project managers and senior managers. This book can use to students who want to have an in-depth understanding of project management where they can juggle different options to consider in various cases. The book can be used in the referencing of the case studies that need the application of the TOC in managerial decision making to improve production.

Reference

Goldratt, E. M. (2017). Critical chain: A business novel. Routledge.