The evolution of a management philosophy: The theory of constraints

Abstract In 2004, the Theory of Constraints celebrated its Silver Anniversary. In twenty-five years, what started out as a scheduling software has evolved into a management philosophy with practices and principles spanning a multitude of operations management subdisciplines. As the Theory of Constraints has grown, so has its acceptance by both practitioners and academicians. At this point in its development, as it transitions from niche to mainstream, it is important to review what has been accomplished and what deficiencies remain so that both the promise and problems impeding greater acceptance can be examined. To that end, we review the evolution of principal TOC concepts and practices in an objective fashion.

[1]  Stephen S. Roach,et al.  In Search of Productivity , 1998 .

[2]  Avraham Shtub,et al.  Multi-Project Scheduling and Control: A Process-Based Comparative Study of the Critical Chain Methodology and Some Alternatives , 2004 .

[3]  T. Raz,et al.  A Critical Look at Critical Chain Project Management , 2003, IEEE Engineering Management Review.

[4]  Robert C. Kee,et al.  A comparative analysis of utilizing activity-based costing and the theory of constraints for making product-mix decisions , 2000 .

[5]  Satya S. Chakravorty,et al.  A comparative study of line design approaches for serial production systems , 1996 .

[6]  T. C. Bond.  An investigation into the use of OPT production scheduling , 1993 .

[7]  Kevin Watson,et al.  Comparison of DRP and TOC financial performance within a multi-product, multi-echelon physical distribution environment , 2003 .

[8]  James F. Cox,et al.  Optimal decision making using cost accounting information , 2002 .

[9]  James F. Cox,et al.  Optimum production technology (OPT) and the theory of constraints (TOC): analysis and genealogy , 1995 .

[10]  R. Kaplan.  Measuring manufacturing performance: a new challenge for managerial accounting research , 1983 .

[11]  Debra Smith,et al.  The Measurement Nightmare: How the Theory of Constraints Can Resolve Conflicting Strategies, Policies, and Measures , 1999 .

[12]  Hokey Min,et al.  TOC-based performance measures and five focusing steps in a job-shop manufacturing environment , 2002 .

[13]  Timothy D. Fry,et al.  AN ANALYSIS AND DISCUSSION OF THE OPTIMIZED PRODUCTION TECHNOLOGY SOFTWARE AND ITS USE , 2009 .

[14]  M. S. Spencer,et al.  Performance measurement in a theory of constraints environment , 1998 .

[15]  Eliyahu M. Goldratt,et al.  Computerized shop floor scheduling , 1988 .

[16]  Thomas H. Johnson,et al.  Relevance Lost: The Rise and Fall of Management Accounting , 1987 .

[17]  Alicia Johnson.  MRP?MRPII? OPT? CIM? FMS? JIT? Is any system letter-perfect? , 1986 .

[18]  Robert Kee,et al.  Evaluating the Economics of Short- and Long-Run Production-Related Decisions [*] , 2001 .

[19]  Herman Steyn.  An investigation into the fundamentals of critical chain project scheduling , 2001 .

[20]  Lloyd J Taylor,et al.  Goldratt's Thinking Process Applied to Medical Claims Processing , 2002, Hospital topics.

[21]  T. Simatupang,et al.  Applying the theory of constraints to supply chain collaboration , 2004 .

[22]  Willy Herroelen,et al.  On the merits and pitfalls of critical chain scheduling , 2000 .

[23]  V. J. Mabin,et al.  The World of the Theory of Constraints: A Review of the International Literature , 1999 .

[24]  Marc Lambrecht,et al.  Buffer Stock Allocation in Serial and Assembly Type of Production Lines , 1990 .

[25]  Eli Schragenheim,et al.  Manufacturing at warp speed : optimizing supply chain financial performance : includes simplified drum-buffer-rope , 2000 .

[26]  Donald J. Klein,et al.  A Thinking Process for Establishing Management Policies , 1995 .

[27]  John Davies,et al.  A case of personal productivity: Illustrating methodological developments in TOC , 2005 .

[28]  Lorraine R. Gardiner,et al.  Drum‐Buffer‐Rope and Buffer Management: Impact on Production Management Study and Practices , 1993 .

[29]  M. S. Spencer,et al.  Economic theory, cost accounting and theory of constraints: an examination of relationships and problems , 1994 .

[30]  Roger N. Nagel,et al.  CONSTRAINT-BASED CONTROL OF FLEXIBLE FLOW LINES , 1991 .

[31]  Arnoldo C. Hax,et al.  Production and inventory management , 1983 .

[32]  M. Michael Umble,et al.  Synchronous Manufacturing: Principles for World Class Excellence , 1995 .

[33]  Lawrence P. Leach,et al.  Critical Chain Project Management Improves Project Performance , 1999 .

[34]  R. Kaplan,et al.  Measure Costs Right: Make the Right Decisions , 1988 .

[35]  John A. Caspari,et al.  Management Dynamics: Merging Constraints Accounting to Drive Improvement , 2004 .

[36]  John H. Blackstone,et al.  The “Theory of Constraints” and the Make-or-Buy Decision , 1991 .

[37]  E. Goldratt.  The Haystack Syndrome: Sifting Information Out of the Data Ocean , 1990 .

[38]  James F. Cox,et al.  Reengineering performance measurement : how to align systmes to improve processes, products, and profits , 1994 .

[39]  Satya S. Chakravorty,et al.  How Theory of Constraints Can Be Used to Direct Preventative Maintenance , 1994 .

[40]  Mahesh Gupta,et al.  A New Approach to Strategy Formulation: Opening the Black Box , 2001 .

[41]  C. V. Chaudhari,et al.  Application of Theory of Constraints in an integrated poultry industry , 2003 .

[42]  Eliyahu M. Goldratt,et al.  It's Not Luck , 1994 .

[43]  S. Rahman.  The theory of constraints' thinking process approach to developing strategies in supply chains , 2002 .

[44]  Marc Lambrecht,et al.  JIT and constraint theory: the issue of bottleneck management , 1988 .

[45]  Eliyahu M. Goldratt,et al.  Theory of Constraints , 1990 .

[46]  Erik Demeulemeester,et al.  Critical Chain Project Scheduling: Do Not Oversimplify , 2002 .

[47]  Richard A. Reid,et al.  Applying the TOC TP: a case study in the service sector , 2003 .

[48]  José Luis Pérez.  TOC for world class global supply chain management , 1997 .

[49]  Lawrence P. Leach,et al.  Critical Chain Project Management , 2000 .

[50]  S. S. Chakravorty,et al.  Using the theory of constraints to guide the implementation of quality improvement projects in manufacturing operations , 1995 .

[52]  Hokey Min,et al.  Selection of management accounting systems in Just-In-Time and Theory of Constraints-based manufacturing , 2003 .

[53]  Robert C. Newbold,et al.  Project Management in the Fast Lane: Applying the Theory of Constraints , 1998 .

[54]  Lisa J. Scheinkopf,et al.  Thinking for a Change: Putting the Toc Thinking Processes to Use , 1999 .

[55]  Satya S. Chakravorty,et al.  Developing effective strategies to prioritize set‐up reduction in a multi‐machine production system , 1995 .

[56]  R. Kaplan.  Accounting Lag: The Obsolescence of Cost Accounting Systems , 1986 .

[57]  Wallace J. Hopp,et al.  Factory physics : foundations of manufacturing management , 1996 .