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Research World, Volume 6, 2009
Online Version


Article S6.13

The Theory of Constraints: Research Opportunities

Seminar Leader: Raman Kumar Agrawalla
TCS-Innovation Lab, Hyderabad, India
raman.a[at]tcs.com

The seminar started with a note on the book, The Goal, by Eliyahu M. Goldratt (1984). The seminar leader claimed that the book was one of the best pieces of literature, because of its sudden start, a curious continuum, and an open end. There is an interesting parallel between these attributes and the characteristics of research process.

Many situations arise in day-to-day life where one is faced with problems of different kinds. Some problems may have simple and straightforward solutions, while others may be more complex, having various partial solutions, each having its own implications. In dealing with such complex problems, one generally tends to focus on the objectives and plan the response accordingly. Theory of constraints (TOC), however, focuses on the constraints. Using the TOC approach, the processes are planned towards addressing the constraints for maximum possible output. For doing so, TOC suggests five steps: (a) identify the real constraints, (b) decide on how to exploit the constraint, (c) subordinate all other processes to this decision, (d) elevate the constraint, and lastly, (e) return to the first step, essentially not allowing for inertia to set in.

Different persons may have different perspectives on what the constraint is in a specific situation. TOC suggests that, in any system that is brought together for a purpose, there is no such thing as real difference, but only unexamined assumptions. The tools such as evaporating cloud, current reality tree (CRT), future reality tree (FRT), prerequisite tree, and transition tree aid in resolving the differences in identifying the constraints and planning the way forward to achieve the desired objectives. In doing so, active involvement of all participants in the system is necessary, however.

Recognition and management of constraints in planning is evident in other disciplines as well. For example, optimisation problems in operations research (OR) comprise objective functions to be maximised or minimised, subject to constraints. The Viable Systems Model (VSM) approach to problem solving, developed by Stafford Beer, also emphasises on constraints, though implicitly, while diagnosing the problems in a system and redesigning the system to meet its intended goals. The uniqueness of TOC approach, however, lies in its philosophical stance that any improvements in the constraint will only improve the relative output of the system. Therefore, while using TOC approach for analysing any problem, the focus would primarily be on identifying the constraints and improving upon them, leading to improvements in the whole system subsequently. The improvements ay not be limited to the predefined target levels, but possibly even better.

The TOC approach is used in various domains of research, such as operations management, project management, change management, and throughput accounting. Other domains where TOC can be potentially used are innovation implementation, strategic management, and human resource development. The TOC approach can also be used in day-to-day problem solving by internalising the various basic principles and the aiding tools, in our thinking processes.

However, this approach, like any other approach used for research, is not without limitations. The TOC approach appears to be depend strongly upon logic and rationality, that may overlook cognitive biases, cultural and political influences, and so forth, and it can be time consuming too. Also, the TOC approach cannot be used in a situation without adequate knowledge of the relevant domains. Domain knowledge plays a critical role in identifying constraints and also working out ways to improve the system as a whole.

Reference

Goldratt, E. M. (1984). The goal: A process of ongoing improvement. Croton-on-Hudson, NY: North River Press.


Reported by Madhavi Latha Nandi, with inputs from Raman Kumar Agarwalla. [March 10, 2009]


Copyleft The article may be used freely, for a noncommercial purpose, as long as the original source is properly acknowledged.

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