Recently, corporations have been confronted with a number of global
environmental challenges such as global warming, acid rain, depletion of
natural resources, waste management, green consumerism and pollution
prevention. There is growing pressure to deliver products and services
which are environmentally compatible. A number of corporations such as
Du Pont, 3M, AT&T, Xerox and Procter & Gamble are, therefore,
integrating various environmental policies and programmes into their
operations strategy and specific decisions concerning operations such as
product design/planning, process technology selection, and quality
management. Introduces the concepts of environmental management (EM) and
argues that firms which do not recognize the implications of
environmental problems on the operations function will not succeed in
the competitive market. Various environmental management practices (such
as implementing aggressive pollution‐prevention programmes, initiating
environment‐related performance measures and developing green products
and process technologies) provide opportunities to strengthen a firm′s
distinctive competence in terms of operations objectives such as highest
quality, lowest cost, best dependability, and greatest flexibility.
Thus, EM gives a competitive advantage and develops new links between
operations strategy and the corporate strategy (e.g. cost leadership and
product differentiation).
Purpose -The purpose of this paper is to suggest that the theory of constraints (TOC) can serve as a general theory in operations management. The paper first investigate linkages between TOC and the core concepts/components of operations management (OM) and show how OM concepts can be integrated with TOC using examples from the published TOC literature. A second important purpose is to show that TOC, as a theory, has properties essential for a good theory. Design/methodology/approach -Using a commonly accepted categorization of operations decisions (process, quality, inventory and capacity), traditional views, and approaches to operations decisions to those inherent in the TOC are compared. Findings -The paper concludes that the TOC provides approaches to operations decisions that avoid pitfalls of local optimization by reaching across functional boundaries in organizations. In addition, while the TOC appears to meet the criteria of a good theory, it has not been empirically tested for the most part. Originality/value -The TOC can serve as a unifying theory or theme for operations management, providing new insights for researchers and an organizing principle for teachers.
In this paper, we apply a design science approach to help a Northern European city improve the efficiency of its home care delivery system. Our proposed solution emerges as a synthesis of applying Goldratt's Theory of Constraints and the principles of variable-demand inventory replenishment. The improved system exhibits both more level resource utilization and higher productivity due to more efficient capacity utilization. In addition to improving system efficiency, we gain insights into how authentic operations management problems can be addressed through design research. A crucial aspect of empirically-rooted practical problems is that they always involve multiple stakeholders with only partially overlapping preferences. Consequently, one must not assume or ascribe an a priori system objective, instead, it must arise from explicit empirical analysis of the relevant stakeholders. Another characteristic of authentic problems is that they are always embedded in an institutional context that sets significant boundary conditions to the feasibility of solutions. These boundary conditions are an important reminder of the complexity of empirically-rooted managerial problems.
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