Elevating the constraints – the case of Atulya Dairy

Abstract

Learning outcomes The learning outcomes of this study are to understand the theory of constraints and related concepts, to evaluate constraints impeding organizational growth and to develop a solution addressing the constraints in the best possible way. Case overview/synopsis Bottlenecks or constraints impede an organization from reaching its full potential, thus having implications for the internal and external functionalities of the organization. Internally, many resources remain idle or deteriorate, as constraints always hamper the overall capacity. Externally, the organization might lose the customer for not fulfilling their demands. The organization may be unable to procure the raw material at economical prices from the suppliers, as large-quantity orders may not be placed. This case was designed to make students understand the theory of constraints (TOC) and related concepts. The TOC framework was a management philosophy developed by Dr Eliyahu Goldratt and popularly mentioned in his book The Goal. This case study considered a dairy plant as its central focus. The protagonist was challenged by the existing constraints in his dairy plant, and his dilemmas were introduced. The dairy processes were discussed, followed by details of supplies made to the dairy plant regularly. The capacity constraints at different levels were mentioned. The case also discussed the quick fixes adopted by the dairy to overcome the constraints. Finally, this case ended with a dilemma presented before the protagonist and a dire need for a solution thereafter. Complexity academic level This case was appropriate for introducing TOC to undergraduate and postgraduate courses in operations management, logistics and supply chain management and general management. Supplementary materials Teaching notes are available for educators only. Subject code CSS 9: Operations and Logistics.