Applying the TOC TP: a case study in the service sector

Abstract

An increasingly utilized framework for implementing the continuous improvement management philosophy is the Theory of Constraints (TOC). Although this systemic managerial approach was initially developed and applied in the manufacturing sector, its underlying philosophy has been expanded to address three basic questions: What to change?; What to change to?; and How to cause the change? Demonstrates how a manager could apply the TOC thinking process (TP) logic tools to answer the first two questions for a small service organization. In regard to the first query, uses a relatively new procedure called the “three‐cloud approach” to determine the core problem or root cause responsible for the majority of the problems currently faced by management. By using this approach, a manager creates a current reality tree (CRT) that uses sufficiency logic to document the cause‐effect relationships responsible for a system’s current state. In regard to the second query, develops another TOC logic tool, a future reality tree (FRT), to help construct and evaluate planned interventions for resolving the core conflict and improving effectiveness. Draws conclusions relative to the feasibility and utility of using TOC TP logic tools to help managers of service organizations improve their overall system performance.