The theory of constraints as a method of results optimization in complex organization

Abstract

The paper presents the theory of constraints (TOC) as a method used to improve results in a complex, multiplants organization. In the article the assumptions of this method has been presented as well as iterative approach concerning how to launch it in practice. Main indicators for organizational effectiveness assessment have also been presented. The maximization of production assets utilization is a key issue for competitive organization in the changing market conditions. An appropriate usage of the theory of constraints enables efficient allocation of financial assets among particular plants within a capital group. An application of a method has been presented based on throughput analyses and its influence to improve financial results of one plant organization and synergy effect in multiplants organization. The theory of constraints can be used in almost every kind of business sectors, among them are metal and foundry industries. It allows to be implemented in production organizations as well as in any other company’s profiles. Everywhere the constraint has been defined there is a chance to achieve an improvement following the presented method. The examples have been taken from the casting plants which use continuous and mold casting technologies. The examples show that TOC approach can be successfully employed as the improvement tool of foundries’ performances.