Applying the TOC five‐step focusing process in the service sector

Purpose – The purpose of this paper is to present a comprehensive descriptive analysis of the sequential application of the Theory of Constraints (TOC) five‐step focusing process in improving the effectiveness of a service process that was limiting the performance of the entire service system.Design/methodology/approach – The five‐step approach is schematically presented with each step being described and evaluated relative to its role in effective constraint management. A detailed example provides additional insights and nuances into its use in managing the constraint within a banking organization's subsystem, namely, the loan application and approval process. This hypothetical, realistic, and comprehensive illustration iterates through several cycles of the five‐step focusing process to demonstrate how managers are able to address different types of constraints.Findings – The paper provides a detailed description on how each of the five‐steps can be used to improve the organization's performance relativ...

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