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  Constraints Management
 

Constraints Management

by S.G. Bhanushali

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  Management is a soft science, a normative science. It does not provide set solutions to situations or problems. Management science trains our mind as to how to approach a development, reach the root cause and resolve the problems. Constraints management provides a novel approach to exploit the constraint by focusing attention on material and resources at the same time. Theory of constraints emphasizes that there is always a constraint in the system, physical or policy constraint. The objective of the constraint management is not to minimize the cost because there is a limit to which level costs can be reduced. Its objective is to maximize throughout by subordinating everything to reduce limiting impact of the constraint. The goal of the organization is to make more money now ad in the future, to provide a secure and satisfying workplace now and in the future, satisfy customers and stake holders now and in the future. E.M. Goldratt has used the concepts and tools of hard science-Physics in the science of management. Constraint is anything that prevents a system from achieving a higher performance relative to its goal. He has advocated five steps to resolve the problem of constraint without compromise. They are identify the system’s constraint, decide how to exploit the system’s constraint, subordinate everything else to reduce limiting impact of he constraint, elevate the constraint and go back to step one Constraints management is a thinking process in which ‘cause and effect’ technique is incorporated to identify a constraint and analyze it. Plants are unbalanced. Some resources have less relative capability than others. This creates a constraint. The fundamental thesis is that, constraints determine the performance of any system. The theory advocates that managers should focus on constraint rather than on production cost. The theory concentrates on the thinking process and on verbalization of intuition. This is based on two logical constructs, namely, sufficiency logic describing reasons for existence of a situation and necessity logic describing prerequisites associated with desired outcome. Performance in production can be improved with managerial know how -knowledge to what to change to-, the logical know how {knowledge of what to change to- and psychological know how {knowledge of how to cause change-. It identifies bottlenecks in plants and sets up production and material plans simultaneously around the best use of resources. Goldratt has developed innovative tools to analyze the problem; search root cause of the problem and find a solution to the problem without compromise. The main tools are- the evaporating cloud, the current reality tree, the communication current reality tree, categories of legitimate reservation, the future reality tree, the prerequisite tree, drum-buffer-rope and the critical chain. Constraints management is a sophisticated philosophy, therefore all the employees must be trained in skills required to implement the strategy and soft skills of managing those who implement the strategy. Good amount of home work need to be done before embarking upon introduction of constraints management in the organization. Present book discusses all these aspects of the philosophy in great detail. Constraints management is an improvement in line with T.Q.M., J.I.T., reengineering and learning organization. The theory has introduced novel research methods; it has a broad spectrum of robust application. After having discussed the theory in its various aspects, constraints management in productive activity like two wheeler assembly line, diesel oil engine manufacturing plant and small scale engineering unit is discussed. Constraints management in process industries like petroleum refinery, pharmaceutical unit, sugar processing unit and milk pasteurization plant is analyzed. In the last chapter this theory as practiced i projects like water storage dam and software solution project is described. It is observed that the theory of constraints is applicable to one constraint one product activity. However, constraints can be managed in multi-constraint multi-product entity with the help of dual simplex linear programming along with MARLAB fuzzy tool box and modified flexible S-curve membership function. Fuzzy solution to multi-constraint multi-product problem is discussed with the help of numerical and graphical example. ISBN - 9788189640743
 


Pages : 207
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