A ten step journey through our unique ten step method for improving organizations（9）

A ten step journey through our unique ten step method for improving organizations（9）

－－Bringing the constraint inside the organisation when possible

Types of constraint and generic solutions 
 
By this stage the organization has gained the experience and the benefits of addressing most of the constraints one can expect to find in any organization. Generic solutions have been developed for some of the major types of constraints. They have been implemented since 1975 and have successfully produced results. Naturally, a generic solution needs to be customized for every specific environment, but the fact that a generic solution exists saves us a great deal of work.

The main types of constraint are:

 Resource and capacity constraint:

Drum-Buffer-Rope together with Buffer Management allows effective exploitation of the constraint and control over the performance of the system.

 Time constraints

Critical Chain, synchronization of strategic resources (drum) and buffer management control and elevate time constraints.

 Policy constraints

The Thinking Processes provide a systematic analysis of what is wrong with current policy and what to replace it with, without generating negative effects.

 Sales constraints

The Thinking Processes have to be used to redirect the mindset of salespeople to focusing on the objective of selling and demonstrating their commitment to the goal of the company.

 Marketing constraints

This is addressed through constructing an offer the market cannot refuse. (See Step Eight.)

 Organization (Structure) Constraints

These arise when the developing business is held back by practices, functions and authorities that do not make sense anymore. The Thinking Processes must be used to develop a new structure suitable for the growing business.

 The Human Behavior Constraint

This has been addressed throughout the Decalogue in setting the goal, defining measurements,  designing and making the system stable, and controlling variation.

The major cause for variation and the existence of the constraints is human behavior. Perhaps the deepest constraint in an organization is people’s resistance to addressing the constraint. 
 
Strategic choice of constraint

Once we have gone through the steps of the Decalogue, we have become accustomed to the concept of constraints and we know how to address them. We know that a constraint is normal and healthy, as long as we have the tools to deal with it.

Given that there must be a constraint, is it better to have it internally or externally? An internal constraint is something under our direct control, an external constraint is not.

Given the choice, the simplest and easiest to manage is the capacity constraint. Ideally, we should have one resource or one department which is the strategic constraint.

Continuous improvement should be done in controlled steps of increasing capacity while increasing demand.