A classified model for applying the theory of constraints to service organizations

Siha, Samia M.

doi:10.1108/09604529910273201

Cited by 33 publications

(37 citation statements)

References 7 publications

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“…Thus, given the demonstrated effectiveness of theory of constraint's drum-buffer-rope (DBR) scheduling technique in the latter setting (Guide, 1996), there is reason to believe that DBR could be of benefit to better plan the operations in the hospital under study. The choice of DBR is also in agreement with Siha's (1999) suggestion that DBR can be useful in medical environments with an interaction of stochastic cure times, dependent events, and probabilistic care plans.…”

Section: Problem Characteristicssupporting

confidence: 75%

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Theory of constraints for publicly funded health systems

Sadat

Carter

Golden

2012

Health Care Manag Sci

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This thesis aims to fill the gaps in the literature of the theory of constraints (TOC) in publicly funded health systems. While TOC seems to be a natural fit for this resource-constrained environment, there are still no reported application of TOC's drum-buffer-rope tool and inadequate customizations with regards to defining system-wide goal and performance measures.The "Drum-Buffer-Rope for an Outpatient Cancer Facility" chapter is a real world case study exploring the usefulness of TOC's drum-buffer-rope scheduling technique in a publicly funded outpatient cancer facility. With the use of a discrete event simulation model populated with historical data, the drum-buffer-rope scheduling policy is compared against "high constraint utilization" and "low wait time" scenarios. Drum-buffer-rope proved to be an effective mechanism in balancing the inherent tradeoff between the two performance measures of instances of delayed treatment and average patient wait time. To find the appropriate level of compromise in one performance measure in favor of the other, the linkage of these measures to system-wide performance measures are proposed.In the "Theory of Constraints' Performance Measures for Publicly Funded Health Systems" chapter, a system dynamics representation of the classical TOC's system-wide goal and performance measures for publicly traded for-profit companies is developed, which forms the iii basis for developing a similar model for publicly funded health systems. The model is then expanded to include some of the factors that affect system performance, providing a framework to apply TOC's process of ongoing improvement in publicly funded health systems.The "Connecting Low-Level Performance Measures to the Goal" chapter attempts to provide a framework to link the low-level performance measures with system-wide performance measures.It is claimed that until such a linkage is adequately established, TOC has not been fully transferred to publicly funded health systems.iv

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Section: Problem Characteristicssupporting

confidence: 75%

“…Examples include airlines, trucking, hotels, and resorts and recreation. Siha (1999) defines the inventory for these organizations as the unused "service", such as a seat on a flight or space in a truck, and a room in a hotel or resort. The throughput is the money generated from selling the "service".…”

Section: Goal and Performance Measuresmentioning

confidence: 99%

Theory of constraints for publicly funded health systems

Sadat

Carter

Golden

2012

Health Care Manag Sci

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“…Table 2 shows different implementation of TOC. Fenbert & Fleener, 2002;Wei et al, 2002√ Dettmer, 1995Ehie & Sheu, 2005;Moore & Scheinkopf, 1998;Nave, 2002;Raimona Zadry & Mohd Yusof, 2006;Siha, 1999;Stein, 1997√ Coman & Ronen, 2000Hilmola 2001√ Aryanezhad & Komijan, 2004Bhattacharya et al, 2008;Fawcett & Pearson, 1991;Fredendall & Lea 1997;Gupta et al, 2008;Lea & Min, 2003;Patterson, 1992;Souren et al, 2005;Umble et al, 2006√ Balakrishnan & Cheng, 2005√ Bhimani et al, 2002Cooper & Slagmulder, 1999;Fritzsch, 2011;Kee, 1995;Kirche et al, 2005;Ioannou & Papadoyiannis, 2004;Jones & Dugdale, 1998Louderback & Patterson, 1996;Schniederjans & Garvin, 1997;Spencer, 1994;Watson & Patti, 2008;Zimmerman & Yahya-Zadeh, 2011√ Bramorski et al, 1996√ Breen et al, 2002Motwani et al, 1996 √…”

Section: Resultsmentioning

confidence: 99%

Theory of constraints: A state-of-art review

Orouji¹

2016

10.5267/j.ac

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The theory of constraints (TOC) is a management tool, which considers any manageable system as being limited in reaching more of its objectives by some constraints. According to TOC, there is always, at least, one single constraint, and TOC implements a concentrating process to detect the constraint and restructure the remaining of the organization around it. This paper presents an overview of different perspectives of TOC and its implementation in different industries such as project management, quality management, outsourcing, product mix, maketo-buy, accounting, banking and health care, etc. The results indicate that the method has been extensively implemented in different areas of accounting.

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“…The study also revealed that TOC measures (throughput, operating expense, and inventory) can be identified and measured to achieve global organization"s goal. Siha (1999) asserted that the recognition of organization constraints play an important role in achieving continuous improvement in service organizations. Techniques like drum-buffer-rope which are predominantly common in manufacturing arena can very well be applied in service sector to exploit system constraints and then subordinate resources to it.…”

Section: Literature Reviewmentioning

confidence: 99%

Improving Operations Strategy: Application Of TOC Principles In A Small Business

Kohli

Gupta

2010

JBER

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(Hayes & Upton, 1998). Small businesses that neglect operations functions risk the danger of not staying ahead of the competition. Companies that adopt operations management philosophies such as total quality management (TQM), just-in-time (JIT), and theory of constraints (TOC) are ahead in the game and are reaping benefits. These concepts advocate for a change in the operations management paradigm through continuous improvement and if used effectively help managers identify their organizational goals and constraints. That in turn leads to better performance and improved solutions (Motwani et al., 1996). The overall objectives of these philosophies are similar i.e., improving profitability of the business and satisfying customer needs. However, their focuses differ tremendously: TQM emphasizes doing the right things the first time, IT stresses lean manufacturing, and TOC concentrates on the constraints -the weakest link in the chain.The purpose of this paper is to demonstrate how operations assist small business managers in creating and sustaining a competitive advantage by applying the basic concepts and principles of TOC using a case study. We analyze operations of a small family owned pizza restaurant (we will call it "The DT Pizza Company" in order to respect the confidentiality of the real business) and apply TOC-based management philosophy to increase operations effectiveness and efficiency, directly resulting in improved financial successes. The remainder of the paper is organized as follows. Section 2 presents a brief review of the literature on TOC. Section 3 expands on application of TOC in relation to the DT Pizza Company by discussing the organizational mindset as well as the performance measures beings employed there. Section 4 reports analysis and application of the five focusing steps of TOC employed in this study. Section 5 provides the details of the implementation of recommended solutions at the DT Pizza Company, and finally Section 6 concludes with recommendations for further research and application in business world. LITERATURE REVIEWTheory of Constraints (TOC), an emerging philosophy, was originally developed by Goldratt (1994) to demonstrate how to effectively manage organizations and is based on two assumptions: (1) systems thinking, and (2) O

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A classified model for applying the theory of constraints to service organizations

Cited by 33 publications

References 7 publications

Theory of constraints for publicly funded health systems

Theory of constraints for publicly funded health systems

Theory of constraints: A state-of-art review

Improving Operations Strategy: Application Of TOC Principles In A Small Business

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